Senate minority leader Mitch McConnell spoke to reporters after President Obama's visit to the Capitol on Jan. 27. Obama met with reluctant Republicans to urge their support for a $825 billion package he says is needed to resuscitate a plunging economy. (Kevin Lamarque/Reuters)
After talks with Obama, GOP lawmakers still balk at stimulus bill
Republicans want more tax cuts, less spending in a package they warn could top $1 trillion.
By Gail Russell Chaddock | January 27, 2009 edition
Washington
In a bid to build a bipartisan vote for his $825 billion economic stimulus plan, President Obama took a rare presidential run up Capitol Hill today to talk directly to skeptical Republicans.
They listened, asked questions, made points, praised the visit, but did not commit to backing the plan, which faces its first vote in the House on Wednesday.
“We’re not going to get 100 percent agreement, and we might not even get 50 percent agreement, but I do think people appreciate me walking them through my thought process,” the president said, as he left a meeting with GOP senators just off the Senate floor.
“I hope I communicated a sincere desire to get good ideas from everybody,” he added. “My attitude is this the first major piece of legislation we’ve worked on, and that, over time, some of these habits of consultation and mutual respect will take over, but old habits die hard.”
In the run-up to today’s meeting, House GOP leaders complained that their Democratic colleagues had drafted a purely partisan bill that left them out of the process. While praising the president for reaching out to minority views, Republican leaders are urging opposition to the plan when it comes to the floor on Wednesday.
“What congressional Democrats have put on the table is a wasteful and unfocused package that will create plenty of government programs and projects – but not nearly enough new, good-paying jobs,” said House Republican leader John Boehner in a statement after Mr. Obama’s visit on Tuesday.
The real cost of the plan will top $1.1 trillion, he added, citing a new estimate from the nonpartisan Congressional Budget Office, released Tuesday, that the interest costs to the federal government as a result of borrowing to pay for this plan will amount to $347 billion between 2009 and 2019. “The American people deserve better than the $1 trillion spending bill that the House will vote on tomorrow, and Republicans will continue reaching out to President Obama to craft a plan that reduces wasteful spending and helps create jobs through fast-acting tax relief for middle-class families and small businesses.”
House Republicans, who praised the White House for including $300 billion in tax cuts in its initial plan, balked at changes in the House bill that reduced tax cuts to $275 billion.
“I tried to remind people that even with the modifications that have been made in the House, we still have $275 billion in tax cuts,” the president said. “I tried to remind them that when it was $300 billion in the beginning when we first put our framework together, there was a lot of praise from the Republican side and a lot of grousing from my side of the aisle, and it hasn’t changed that much.”
On the Senate side, Republicans are urging the White House to enhance tax cuts and do more to solve the housing crisis, including a provision so that people facing foreclosure can refinance their homes at a 4 percent mortgage rate. They also urged Democrats to zero out proposed social spending that they say will not deliver quick stimulus to the economy.
At the moment, no Republican in either the House or Senate has endorsed the plan. “Until we have an opportunity to participate, I have urged all my colleagues to continue to discuss,” said Sen. Christopher Bond (R) of Missouri, after the meeting.
Still, the mood at the meeting with the president was respectful and a dramatic change from the highly partisan tone in the previous Congress, said Republicans who attended the meeting.
“It wasn’t an argument. It’s the kind of discussion I think that the American people expect responsible leaders to have with each other,” said Sen. Jon Kyl (R) of Arizona, the Senate Republican whip. “But there will come a point in time when Republicans will want to see their ideas included in legislation, not simply considered.”
In response to similar arguments, Democrats are making a simple point: We won. (Press reports of a White House meeting with Republicans last week quote Obama as responding to Senator Kyl with that phrase.)
Referencing that exchange, Kyl added: “They won, and that’s true, but the question is, how do you want to govern? Do you want to govern with a 100 percent Democratic solution? I don’t think President Obama wants to govern that way.”
As he exited the Senate on Tuesday, Obama made a different point: “The main thing is to make sure that everyone understands how urgent the situation is.”
“The problems our economy face are not going to go away easily. We’ve got to deal with them swiftly and seriously. That’s what my administration is committed to doing. That’s not a Democratic or a Republican issue, that’s an American issue,” he said.
Comments
2. Steve | 01.27.09
Instead of everyone commenting on it, I would love to see a detailed plan of the bill
3. Edie | 01.27.09
Obama is trying to rush a budget drawn up by the Dems who are trying to assert their independence by sticking in their old pet projects and Republicans are trying to be fiscally conservative after driving us bankrupt walking lock step with Bush and Cheney. Obama is caught in the middle of these self interest congress democrats and republicans alike and he’s trying to play fair with these self interest congressmen and senators. I just hope that Obama doesn’t throw in the towel having to deal with these selfish politicians who only have their own appearance rather than putting the American people first. Republican motto,,,country first? Baloney!! Democrats tax cuts for 95% of the people? Baloney!!
4. BILL SCHRADER | 01.27.09
President Obama is setting a new standard of tranparency and accountability. He is setting a new standard of non-partisan leadership. These are difficult changes for the old guard republicans to digest, but they need to do it now for the sake of our country.
5. Bill | 01.27.09
Until we stop the housing situation and get the banks to become more reasonable in their lending this economy will never change it will only get worse. I have excellant credit and sufficient income, now the banks want copies of social security cards, along with tax returns, w2 etc. This is really a stupid requirement and incourages fraud opportunity. What about the energy cost, I see gas prices are starting to go up again. I wonder why? Profits no other reason. Everything is a game. None of the politicians really care about the American people. Their protected from the issues we have. Their salary and benifits are guaranteed.
More and more people are getting financially hurt because not one thing is being done to cure the credit issues out there. The banks should be held liable and so should all the lenders who got themselves in this mess. Putting money into the infrastructor won’t create new jobs. The states are already laying people off and it’s not because they don’t have funding it’s because everthing else is falling apart.
6. Tim B | 01.27.09
Referencing that exchange, Kyl added: “They won, and that’s true, but the question is, how do you want to govern? Do you want to govern with a 100 percent Democratic solution? Republicans may have governed with a 100 percent Republican solution for the last 8 years despite much slimmer wins at the polls, but the point is we have to look forward and not get bogged down in all this ‘past’ business. Or do you not believe in CHANGE??”
7. Curly | 01.27.09
At the present we need a bill that gets money to the people. One that releaves the mortgage and loan situation. We don’t need something for long range problems. If the money will not be spent in 12 months it dose not need to be in the bill. Those projects can be funded after the recovery,
8. BasilP | 01.27.09
These narrow minded Republicans already spent over $1T on the Iraqi war-and who benefited? The money hemorrhage hasn’t stopped? In the 80’s we had a chic term “recapitalization” and now we need that more than ever. I’d gladly spend $1T on recapitalizing the US energy & transportation sectors in a effort to procure a larger degree of energy independence and reduce greenhouse gases. Tax cuts will just see capital outflows to foreign markets if we don’t adjust our currency rates & trade imbalances. These Republicans have just fallen too much in love with tax cuts to satisfy their trickle down dogma. Since 1980, which is 28 years, the Republicans have held the Presidency for 20 & the Democrats only 8 so the Republicans need to give up the ghost. They blew it and blew it and big time. History speaks volumes so listen up!
9. barbara hopkins | 01.27.09
Why is obama meeting with CEO’s who are part of the problem in America!!!!!!
Why does he not listen to the American people who are the benficiaries of this financial mess? Obama should be giving more to the American people in this stimulus bill and let them decide how to use it to stimulate the economy. I doubt very much if this whole stimulus bill is even going to work since nothing is being done about all the corporate greed that has gone on and continues to go on. It is really politics as usual but with different rhetoric to snow the American people again. What is in this bill for the American people amounts to nilch to help them in this dire times.
10. J H | 01.27.09
The man’s been in office for a week. Is “rare presidential run up Capitol Hill” supposed to tell us that previous presidents rarely showed up on Capitol Hill? That may be true, but given Obama’s current visit frequency, I don’t think you can project that such visits will be rare in his presidency.
11. barbara hopkins | 01.27.09
I agree with the Republicans on this issue because the American people are the ones who need help badly. I do not think this bill is going to do much for the American people but I am sure it will help state governments use money inappropriately as well as contribute to more corporate greed. What is proposed in this stimulus bill for the American people amounts to nilch being that the average American is in such dire straights financially. The politicians should also use honest rhetoric when they say for example a $7500.00 tax credit for new homebuyers is really just a loan that has to be paid back. This is not helping the American people It is politics as usual they got us in this mess now we suffer they don’t. They continue with their fancy haircuts, homes, clothes, and rich way of life.
12. Web Smith | 01.27.09
So after rushing to enter a war that has cost us a trillion dollars and rushing to give trillions of dollars to the banks that did nothing, we are now going to rush to borrow another trillion dollars to spend at a time when this year’s entire GDP is already owed to a private bank and foreign countries.
We are not going to fix this problem by borrowing more money. Debt has to be eliminated before we get better. What we are going to do is sell our freedom for that $300 check you’re going to get in the mail.
13. peter | 01.28.09
Rather than arguing about or debating ideology or approach, the question the administration and lawmakers should answer is, “What are the facts about what provides the biggest bang for the stimulus buck?” There is extensive research on the degree to which various types of tax cuts and spending actually stimulate job creation, economic growth, etc., And while the research is not unequivocal, there are general conclusions which can be drawn.
As with any type of conflict, an essential step to resolution is to gain agreement on facts, going beyond opinions, assumptions and beliefs. This is one key action our political leaders need to take in order to start to get beyond partisanship and develop solutions to the grave problems the US faces.
14. DD | 01.28.09
Until the average American has enough money to purchase goods and services the economy will tank. Stop taxpayer subsidies of executive salaries by capping the corporate tax deduction of salaries at $1,000,000.00. Raise minimum wages and begin public works projects that build infrastructure. Raise the maximum tax bracket to 50 percent and set taxes on interest, dividends and capital gains to the same rate as EARNED income. Obama’s plan is a pretty good START. We need to vote out any Republican who continues the same old stuff of the past eight years. They put us here, they need to pay for it. I welcome Robin Hood as a perfect replacement for the Hood Robbin’ that’s been going on under the last administration. Insanity is expecting different results for the same inputs. It’s time for sanity; it’s time for change.
15. dunots | 01.28.09
To first comment: one hundred thousand dollars to each child? If we have fifty million people under eighteen in this country, that’s fifty trillion dollars. You may be slightly overplaying the math.
In any event, the paradigm the blue team is most likely following is a Keynsian take on the situation, similar to FDR’s. Also being assumed is that we’re -not- going to come out of this in the next twelve months. If we’re at the very beginning of what could become a far-reaching economic crisis, then long term high value-per-dollar plans are the better alternative, so as to begin the slower, more effective recovery processes early.
If, instead, it will last a year or less, then there’s little to lose in the case of over-preparing.
The main issue is whether or not one believes in a Keynsian model. If no, you probably didn’t or shouldn’t have voted for Democrats. If yes, then the main criticism with the New Deal is that it wasn’t big enough. Can the market regulate itself if we use enough monetary policy (I.E. giving people tax breaks/rebates)? That’s what to consider.
16. Barry | 01.28.09
Steve wrote on 01.27.09:
Instead of everyone commenting on it, I would love to see a detailed plan of the bill
——————————————
Yes, I agree. You can see Obama’s plan described right on the White House website, but of course the legislation actually drafted by Congress just used that as a starting point, and deviates from it - the President didn’t write the bill they are discussing, but the House majority aren’t publishing their proposal.
I do wish that Pelosi and some House Dems didn’t try to shovel in a lot of ideas they’ve been wanting to get passed anyway into the “stimulus” package.
On the other hand, I do wish that some House Republicans didn’t try to use this as an opportunity to score political points and undermine the new administration.
17. RHarrisonScott | 02.02.09
Bill says: “More and more people are getting financially hurt because not one thing is being done to cure the credit issues out there. The banks should be held liable and so should all the lenders who got themselves in this mess. Putting money into the infrastructor won’t create new jobs. The states are already laying people off and it’s not because they don’t have funding it’s because everything else is falling apart.”
The problem isn’t with the banks. The problem rests solely the decision made by the execs at Fannie Mae and Freddie Mac (at the behest of our liberal Congressional leaders) to mainstream sub prime mortgages into the secondary mortgage market as AAA mortgage backed securities. When large numbers of those loans went into default, the global community got stuck with worthless paper.
Today banks don’t have a secondary market to sell the mortgages they originate so they have now have to carry that risk internally. Question. If you were a banker and you knew that the value of the real estate you are loaning money on will lose another 25-30% of its value, how excited would you be to loan money to someone making even a 20% downpayment?
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1. WR Burton | 01.27.09
Republicans are not Democrats. You can’t ask them to lay down their own best judgment. This package is like sending a credit card to every child under 18 in the United States … with a NEGATIVE BALANCE of $100,000. Buy the time they retire it will be a $1million or more. Some legacy!