Can the Twain Meet?
Is perfect the enemy?
The mainstream weekend media would have the world think that President Obama has already reached his flashpoint showdown with GOP Senators over structure and content of the Stimulus package. And that the President has caved.
Senators met Saturday and worked almost $80 billion out of the bill, bringing total allocations closer to the $820 billion the House of Representatives agreed to fund in a measure passed the week before last.
As the Wall Street Journal notes, even after Saturday’s haircut, one of the big differences between the House and the newly-revised Senate measure is $35 billion allocated to knocking $15,000 off the ultimate purchase price of a home bought in the coming 12 months, thanks to a new tax credit:
But the House and Senate plans diverge and embody different priorities in several important areas. The Senate proposal, for example, would give $40 billion less to states to bolster their spending on programs such as medical insurance for the poor, and it slashes $16 billion from a House program to renovate and rebuild schools.
Rep. Chris Van Hollen (D., Md.) insisted classroom construction would “put people back to work.” But with the White House urging speedy action, Mr. Van Hollen was careful not to dig in too deeply.
“There’s a lot we think in the House bill we should have in the final package,” he said on Fox. “Having said that, we are not in the business of drawing lines in the sand, because we believe the overriding priority right now is to get something done.”
The Senate embraced two costly but popular tax breaks not in the House bill. An $11.5 billion measure in the Senate package would encourage purchase of autos by allowing buyers to a tax write-off for local sales taxes and interest on loans. A $35.5 billion measure would create a new tax credit equal to 10% of a primary home purchase, up to $15,000. The House bill has much smaller $2.5 billion housing provision, which would waive the repayment requirement in the current-law $7,500 tax credit for first-time homebuyers.
Democrats are upset Senate GOP compromisers whacked money that would go to the states. Here’s Rep. Barney Frank on efforts to take stimulus money out that was aimed at the states.
“>
Here, the New York Times focuses on the multiple conflicts in play.
To help allay Republican concerns about the cost, the Senate proposal even scales back President Obama’s signature middle-class tax cut. The Senate plan also creates new tax incentives to encourage Americans to buy homes and cars within the next year.
Republican opponents continued to rail against the stimulus plan on the Senate floor on Saturday, though it appeared they would not have the votes to stop it.
The negotiations in Congress will test whether Democrats, who say they won a mandate in November to pursue their goals, are willing to give up some favored long-term policy initiatives to win over more Republican votes.
The talks will also test whether any but the most moderate Republicans will be willing to support the Obama administration, or whether they will simply recoil in an opposition stance.
A vote is expected Tuesday. So, will perfect be the enemy of the absolutely necessary? Or will far-from-perfect political gamesmanship be its enemy instead?
Credit for “Meet the Press” video: Firedoglake.
Comments
Leave a Reply