Our Changing Globe

Posts Tagged ‘republicans’

Obama’s divisive economic stimulus package was approved by the Senate yesterday (Wednesday February 2) after it was agreed that the proposal would provide a tax credit of 10% of the value of new or existing residences up to a $15,000 limit.

The current law provides for a $7,500 tax break but only for first-time homebuyers.

And the estimated cost of implementing the bill?

$920 billion!!

Sen. Johnny Isakson, R-Ga., who advanced the ‘homebuyers tax break’ said it was intended to help revive the failing housing industry which has collapsed and his office estimated that his proposal would cost the government an additional $19 billion.

Democrats seemed happy enough to agree to the proposal which will now have to make its way through congress, something which can be expected to take around ten days.

On another controversial issue, the Senate upheld a labor-backed provision requiring that only U.S. manufactured iron or steel will be used in construction projects that are funded by the bill.

A move by Sen. John McCain, R-Ariz., to delete the so-called ‘Buy American’ requirement failed by, 31-65.

On a day on which Obama pushed back forcefully against Republican critics of the legislation he had this to say,

“Let’s not make the perfect the enemy of the essential. Failure to act quickly will turn crisis into a catastrophe and guarantee a longer recession”.

He then added that the criticisms that he’d heard “echo the very same failed economic theories that led us into this crisis in the first place, along with the notion that tax cuts alone will solve all our problems. I reject those theories and so did the American people when they went to the polls in November and voted resoundingly for change”.

President Elect, Barack Obama prophesied yesterday that the nation would see “trillion-dollar deficits for years to come”, and added that the country will need to continue spending taxpayer dollars in order to get the economy back on track.

Obama, who was speaking to reporters at his Washington transition office, admitted that he didn’t want to get into specific budget numbers because his proposal is still to be worked out with lawmakers and has yet to be submitted for debate, but he did caution that he expects a trillion-dollar deficit before the next fiscal-year budget is even proposed.

“We’re already looking at a trillion-dollar budget deficit or close to a trillion-dollar budget deficit, and that potentially we’ve got trillion-dollar deficits for years to come, even with the economic recovery that we are working on at this point”.

When asked to answer to the numerous concerns related to increased deficit spending, Obama said, “We know that we’re going to have to spend money to jump-start the economy”.

Obama added that he is plans to establish an oversight board that will meet publicly and then issue reports to Congress on how the money is being spent.

This is the first time for sixteen years that Democrats have controlled both houses of Congress and we might finally see a somewhat fruitful session if Obama is able to muster Republican support for his initiatives and House Speaker Nancy Pelosi, D-Calif., promised on Monday as she welcomed Obama to her office, “We will hit the ground running, to address the pain being felt by the American people”.

Democrats will soon attempt to use their bolstered majority to push through several changes to House rules which include a repeal of the six-year term limit for committee chairmen which is a rule that was imposed when Republicans took control of the Congress in 1995.