$787 billion Passed by House Majority
Comments »Feb. 13 (Bloomberg) — The U.S. House passed President Barack Obama’s $787 billion economic stimulus plan designed to help repair the economy through tax cuts for businesses and families and a half-trillion dollars in federal spending.
The chamber voted 246 to 183 for the measure. The Senate plans to approve it later today. That will send the package to Obama for signing and give him the first major legislative victory of his administration.
“After all the debate, this legislation can be summed up in one word: Jobs,” said House Speaker Nancy Pelosi, a California Democrat. “The American people need action and they need action now.” The package is designed to create or save 3.5 million jobs, Obama and Democrats in Congress have said.
The stimulus plan’s centerpiece is a $400 payroll tax cut for individuals and $800 for couples. Retirees, disabled veterans and others who don’t pay payroll taxes would get a $250 payment.
Businesses won several tax breaks, including faster write- offs for equipment purchased in 2009 and incentives for companies that produce and invest in renewable resources such as solar and wind power. A business tax break pushed by the U.S. Chamber of Commerce would ease near-term tax burdens on companies and buyout firms that restructure debt without entering bankruptcy.
Most Republicans opposed the measure, saying it included too much spending and not enough tax cuts and that it wouldn’t do enough to boost the economy.
“This stimulus package does more to permanently grow the federal government than it does to create jobs or stimulate our economy,” said Representative Jerry Lewis, the top Republican on the House Appropriations Committee.
Senate Vote
Senate Majority Leader Harry Reid of Nevada said his chamber will debate the measure until 5 p.m. Washington time. He didn’t give a specific time for tonight’s vote, though late yesterday he said it would be held open to give Democratic Senator Sherrod Brown of Ohio time to return from his home state following the death of his mother.
The 1,400-page stimulus plan would provide a half-trillion dollars for jobless benefits, renewable energy projects, highway construction, food stamps, broadband, Pell college tuition grants, high-speed rail projects and scores of other programs. It would raise the nation’s debt limit to about $12 trillion.
The package would restrict executive compensation at all companies receiving assistance from the Treasury Department’s Troubled Asset Relief Program, not just those receiving “exceptional” aid as the Obama administration announced last week. The legislation limits bonuses and other incentive pay at those companies on a sliding scale according to how much federal aid they take.
CBO Report
The nonpartisan Congressional Budget Office said the stimulus package would cost $787 billion rather than $789 billion as lawmakers estimated. The plan would pump $185 billion into the economy this year and $399 billion next year, the agency said.
Democrats released the text of the plan late last night, prompting complaints from Republicans they didn’t have enough time to review the legislation before voting on it.
“Not one member has read this,” said House Minority Leader John Boehner, an Ohio Republican.
