TOPICS
TOPICS
Stimulus price tag might top $1.3 trillion
President-elect Obama and Democratic leaders Monday pledged to work with Republicans to pass an economic stimulus package as soon as possible that could provide as much as $1.3 trillion over two years.
"We all recognize that the country is in a financial difficulty that we have never seen -- maybe in the history of the country," Senate Majority Leader Harry Reid, D-Nev., said after the meeting. "And what we did at the meeting with President-elect Obama just a few minutes ago is to say that we would join together and try to move some economic recovery relief for the American people as quickly as possible."
Reid said that a final price tag of the package has not been determined, but it could be as much as $1.3 trillion over two years. Democratic leaders are waiting for a detailed set of principles for the bill from the Obama transition team.
"We have not received, of course, the exact package from the president-elect and his folks, but he has indicated that there are at least 20 economists he has talked with and all but one of those believe it should be from $800 [billion] to $1.2 or [$1.3] trillion," Reid said.
The bill is expected to include roughly $300 billion in tax cuts and about $500 billion in spending, including funding for road, bridge and school improvements, renewable energy projects and aid to states to help them pay Medicaid costs.
Transportation lobbyists said that they expect about $50 billion-$60 billion for transportation projects.
Lawmakers this Congress will try to pump billions more into the federal highway coffers over the next several years but only after fixing financing and other problems through a multiyear surface transportation reauthorization bill.
"You really shouldn't funnel too much money through a broken system," as part of the stimulus package, said Deron Lovaas, federal transportation policy director at the Natural Resources Defense Council.
Democratic leaders are still determining when to move the package through Congress after conceding over the weekend that having it ready by the Jan. 20 inauguration would not be possible. But according to one source, Obama told leaders at the meeting that he wanted the package on his desk by Presidents Day.
"I won't make an announcement about how soon, but we all know what our tasks are," said House Speaker Pelosi, who spoke after Reid. "This legislation will begin in the House of Representatives. We know what the time constraints are: They are dictated by sense of urgency that the American people have about their economic well being."
That sense of well being is expected to be shaken again Friday morning when the Labor Department is scheduled to announce new unemployment figures.
Obama said at a photo opportunity with Pelosi that "The reason we're here today is because the people's business can't wait. We've got an extraordinary economic challenge ahead of us; we're expecting a sobering job report at the end of the week."
At a briefing after the Democratic leaders spoke, Senate Minority Leader McConnell and House Minority Leader Boehner, who also attended the meeting, said that they believe Obama's bipartisan gestures to be sincere and were pleased that a large portion of the stimulus would be devoted to tax cuts.
"I think [Obama] would like to have a large bipartisan vote in favor of this package," McConnell said. "And he knows ... that the way to do that is obviously for it to have elements that are appealing to Republicans and to have Republican participation. I think this bill is going to start out and hopefully end as an example of very significant bipartisan cooperation."
McConnell said Congress should explore making the aid to states a loan, similar to loans made to banks and financial institutions under the $700 billion financial rescue plan.
"I think that is certainly worth taking a look at, and I think that the states [that] did take advantage of loans would be very careful about how they spent the money," McConnell said.
COMMENTS
- Okay, Tom, I’m the liberal loon; I guess that makes you the radical right. Like magnets, and many contributors to these blogs, we seem polarized; so dynamically opposed that all we accomplish is finger pointing. And all pointing fingers gets us are three pointing right back at ourselves. Personally, rather than standing out here in left field, I would more comfortable be back in the center where I started. Still, now that we got the identity crisis and name calling over with, perhaps we can get on with the business at hand. “if you thought spending was out of control under Bush, […] You ain't seen nuthin yet!" Unfortunately you are more correct than I would rather. But a spending record yet to be written, particularly in these harsh economic times, cannot be compared to the debt incurred over the past 8 years. To go from a budget surplus to a trillion dollar debt charged on plastic (due to those tax breaks) during relatively good financial times smacks of lunacy. Yep, there’s those loons you spoke of, and they’re the fiscally conservatives?! I do not like taxes, abhor “Daddy’s war”, and prefer a free market; yet all good things must have their limits. We must pay our way, fight the “good” fights, and keep reign on the greed that laissez-faire economics enables. Instead of being a choral director or an iron-fisted dictator, government should be like an older brother (NOT Big Brother) to business; in general, a guiding light with the occasional cuff on the back of the head to keep business straight. It is true that robber barons built this country, but it was built on the back of the poor and disadvantaged; and we decided a long time ago that degree of abuse was not fair or desirable. Regardless of our differing opinions, the only folks I must admit to begrudging their views are Skeeter and their ilk; and by those I mean the folks who scream their mean spirited prejudices against anyone; particularly against all us civilians even though they don’t know what they’re talking about. If you got a legitimate gripe, please speak your mind; after all, this is America. And if our Constitutional freedoms are restored, you may just live to enjoy that self-expression. Tip off Posted January 8, 2009 10:14 AM
- Didn't this start as 5 or 6 Billion package? Naw, no pork in there! So much for the "I'll go line by line and remove...." Tip you and the rest of the liberals loons drank the koolaid and if you thought spending was out of control under Bush, what was the name of the tune from Bachman Turner Overdrive, You ain't seen nuthin yet"! Sing it Randy! Tom Posted January 7, 2009 12:30 PM
- For Skeeter and a number of others out there, despite my railing against his majesty’s historic expansion of executive power, Constitutionality encroachments, “Daddy’s War”, the current fiscal debacle, and numerous other offences against Americans; well, as his reign draws to a close, I must declare my intention to, hopefully, swing back to my preferred centrist position and Doubting Thomas stance as regards the incoming administration. While I must admit to having a modicum of hope, I feel I must begin looking at the new administration more critically; it, of course, being the current target of opportunity. I make no promises, but that is my intent. I must admit that recent moves by the Blue Dogs to eliminate congressional term limits have me concerned and leave little ammunition with which to rebut attacks from Tom’s Party Pachyderm. Still, as I read articles such as “Obama bans earmarks from economic package”, “Obama vows no earmarks on stimulus”, and “Obama promises future budget restraint”, pronouncements that seem to have missed the GovExec reporters, again I must express my hope. These may be mere propaganda… glad-handing play sheets, as many will claim, but I do like the direction they point; and at this juncture in time, that is all I have to go on. Right now, at this moment, the swing of the pendulum is what I fear most. Such a success would allay many of my fears. It was easy to believe that a filibuster-busting capability would be necessary to quickly turn this stampede towards insolvency away; but even I know some control… some legislative restraint IS necessary. Therefore I ask “Can this cowboy ramrod this herd? Will his policies convince the more moderates in both houses to unite and defeat extremism?” for that is surely our only hope. Ths Missouri Mule is still waiting, watching, and … yes, still hoping. Tip off Posted January 7, 2009 10:30 AM
