Stimulus Plan Approved With Improvements from Democrats

Senate Democrats improved the House Stimulus Plan but it may bring a separate toll for Oregon.

(WASHINGTON, D.C. ) - Congress overwhelmingly approved a $168 billion economic stimulus program today, after Democrats compromised and decided not to fight for the additional $40 billion they wanted to help Americans. Republicans were determined to restrict the spending and also able to block the needed votes for the extra money.

It now goes to President George W. Bush for his signature so that millions of Americans can look forward to government checks in the mail. The House approved the package by a vote of 380 to 34.

Democratic senators said they wanted to add more than $40 billion to the House version. That proposal would have raised the cost of the package to about $204 billion over two years.

Nevada Senator Harry Reid made the following statement today while announcing a bipartisan agreement on the economic stimulus plan.

"Two weeks ago most Senate Republicans were quick to endorse the House stimulus bill without any revisions, even though they knew it was inadequate. I said back then that the Senate had two obligations: to improve the bill and to deliver a timely, temporary and targeted bill by Presidents’ Day Weekend. Senate Democrats have kept those promises."

Reid said was their responsibility to pass the strongest bill that they could. He says he offers no apologies for fighting to provide economic relief to as many deserving Americans as possible.

"If we would have listened to the advice of the White House, House and Senate Republicans, 20 million seniors and 250,000 disabled veterans would have been left behind."

He says that at any rate, they were able to make the House bill better, and while he is pleased with that result, there is still more to do.

"Because of our hard work to improve this bill, we were able to get 59 votes – and we will work to find that 60th vote so we can continue to strengthen our shaky economy in the coming weeks and months. We will continue fighting to help those who have lost their jobs in the Bush economy, help small businesses suffering in a looming recession, help American families pay their heating bills as energy prices rise, and help American families avoid foreclosure amid a national housing crisis."

"Covering veterans and seniors makes sense and I support doing so, but the Senate Finance Committee last week added more than a dozen provisions to its bill – including special benefits for oil, gas, and coal companies. Allowing every Senator to add to the package makes it more expensive, contentious, and is a recipe for failure."

Sununu said he felt as though the matter could have been handled above board. "Backroom dealing on a bill of such importance to America is disgraceful - exactly the kind of underhanded behavior and political games that we need to get out of Washington."

"Everyone knows that I have been steadfast in my support for the Low Income Home Energy Assistance Program. That’s why I’m offended that LIHEAP funds were slipped into the bill at the last minute without a vote simply to buy more support."

The price associated with the program changed many times during negotiations as did the plan itself. The initial price tag was $171 billion over two years; then a couple of hours later, the figure was recalculated and came up at $168 billion.

What Americans can look forward to are rebates that will range from $300 to $1,200 for most taxpayers, and payments of $300 for those who paid no income taxes but earned $3,000 or more from Social Security or veterans' disability benefits, as well as various tax incentives for businesses.

In the Senate, 46 Democratic and 33 Republicans and the 2 independents voted yes. Sixteen Republicans voted "no" and three Democrats did not vote. They were Hillary Rodham Clinton of New York and Barack Obama, who are campaigning for the presidency, and Ben Nelson of Nebraska.

Obama issued this statement: "As millions of hardworking Americans face foreclosure, unemployment, and bills they can't pay, it's critical that Republicans and Democrats finally came together to pass a stimulus package that provides immediate tax relief to working families, seniors, and veterans."

The Presidential Candidate says time has been wasted and he doesn't mix his words as far as the direction he sees the country moving in.

"This is similar to the stimulus package I proposed weeks ago, and it will put needed money back into the pockets of working Americans in order to give our economy the boost it needs as we face down a possible recession."

Whether recessionary winds are blowing Oregon's way will become clearer when state economists present a much anticipated economic and revenue forecast to Senate and House revenue committees tomorrow, Friday, February 8th.

The Oregon Center for Public Policy says that regardless of the outlook presented, the revenue forecast will count as a given $100 million that the state is not likely to collect because of the bonus depreciation provision contained in the economic stimulus package being discussed in Washington, D.C.