February 8, 2009
ANTI-DEPRESSION BILL EXPECTED THIS WEEK
President Barack Obama’s near trillion-dollar “economic stimulus plan” was whittled down late Friday in the Senate to a “modest” $780 billion.
The measure now returns to the House for “reconciliation.” No Republicans there voted for the measure. The Democrat majority simply ignores them.
Democrat legislators hope to have a clean bill on Obama’s desk by Friday when Congress leaves for a weeklong recess.
The new spending package would eliminate some tax cuts and reduce state “stabilization funds” by 20 percent. That is: $180 billion. It also would reduce home foreclosures and give tax credits for purchases of new cars.
Senator Ben Nelson (D-Nebraska) says: “We recognize that our plan isn’t perfect, but I believe it is both responsible and realistic.”
Joining him in guiding the bill is Sen. Joe Lieberman (Independent-Connecticut) who caucuses with the Democrats.
The 58 Senate Democrats need only two Republicans to over-ride a “filibuster” of prolonged speeches. This enables legislators to talk proposed legislation to death.
CONGRESS IFFY
The Senate Democrat caucus is not rock solid.
Sen. Edward Kennedy of Massachusetts has a brain tumor and cannot be relied upon to get to Washington for critical votes. He collapsed at the Capitol on Inauguration Day.
Other Democrat Senators also are iffy.
Sen. Dianne Feinstein of California said the bill had too many tax cuts and did not provide enough cash to boost the economy or number of jobs.
Republican senators Mel Martinez of Florida, George Voinovich of Ohio and Lisa Murkowski of Alaska also contended the rescue bill was “too small.”
Arizona Sen. John McCain complained: “Now it’s a Gang of Eighteen -- 15 Democrats and 3 Republicans. That’s not bipartisan. It means that only three Republicans -- out of 535 members of Congress -- have supported this.”
The Senate Republican negotiators were Susan Collins and Olympia Snowe, both of Maine, and Arlen Specter of Pennsylvania.
OBAMA INCENTIVES
President Obama urged swift passage of his economic stimulation efforts.
He appointed Paul Volker – former chairman of the Federal Reserve – to head an Economic Recovery Advisory Board.
Obama declares: “Although we had a terrible year with respect to jobs last year, the problem is accelerating, not decelerating. It’s getting worse, not better.”
Nearly 600 thousand jobs were lost in January -- according to the U.S. Bureau of Labor Statistics.
To enhance the recovery program, the Senate added $11 billion in tax incentives for new-car purchases, $6.5 billion more for the National Institutes of Health, and $18 billion for tax credits to homebuyers.
He said: “Broadly speaking, they are the right size, the right scope and have the right balance.
TAX OPTIONS
Some tax relief would come from trimming a tax cut that would promote development of clean energy. And to money-losing firms by allowing them to get refunds for taxes paid in past years.
In limbo are popular tax breaks for purchases of homes and autos. It is likely that these will be included in a final bill for presidential signature.
Popular, suggested, tax cuts by Mr. Obama are “shovel ready” projects by the states. These would be roads, bridges and public accommodation structures.
These are not recommended – yet. They are too reminiscent of the Great Depression make-work projects of the 1930s.
SHIVERS
The mere mention of public spending to jump-start the economy gives everyone the shivers.
Obama had hoped to inspire a booming economy that would open the doors to projects for the poor and deserving.
Instead, he is faced with congressional economics brought on by Fanny Mae and Fanny Mac public-lending largess. It induced banks and insurance companies to give mortgages to people otherwise unable to assume such debt.
Too late, the government has discovered – again – that it is subject to the same economic laws as private investors.
Personal bank and stock accounts are hard-hit by losses. Many wiped out. We -- and the global economy -- teeter on disaster.
Nations collapse when a majority of the poor discover they can legally take from achievers, savers and financial risk-takers.
In the U.S. of A, 45 percent of the people pay no government taxes for schools, roads, public facilities, police and military protection.
Another 6 percent of free loaders – no matter how deserving – and the lights go out!
By Lindsey Wilger Williams, retired newspaper publisher and syndicated columnist
