Washington: February 5, 2009, IR Summary/NYT - The Senate considered stimulus package with a tax credit for home buyers up to $ 15,000, and on Wednesday voted in favor of them, but according to Majority leader, Senator Harry Reid of Nevada, said that it would finally come up on Thursday.
The vote to add the tax credit shall cost about $18.5 billion. Moderate lawmakers in both parties are pushing to reduce the overall cost of the measure and to focus it more tightly on provisions that will quickly spur spending and create jobs.
The vote came as President Obama met with centrist lawmakers to address concerns about the package.
Mr. Obama, while expressing willingness to compromise, also issued a warning to some Republican critics who have said they will press for major changes to the bill, including the removal of many spending programs in favor of wider tax cuts.
“I’ve heard criticisms of this plan that echo the very same failed theories that helped lead us into this crisis, the notion that tax cuts alone will solve all our problems, that we can ignore the fundamental challenges like energy independence and the high cost of health care and still expect our economy and our country to thrive,” he said.
“I reject that theory,” Mr. Obama continued, “and so did the American people when they went to the polls in November and voted resoundingly for change. So I urge members of Congress to act without delay.”
And, as if taking a cue from their president, Senate Democrats on Wednesday evening used their newly strengthened majority to swiftly reject a series of Republican amendments intended to cut spending or broaden the tax package in the stimulus bill.
Presuming Senate Democrats muscle the bill through, the final legislation must be reconciled with the $820 billion measure approved last week by the House.
The tax break for homebuyers, which the Senate approved by voice vote without opposition, was the second amendment in two days intended to encourage consumers to make major purchases.
On Tuesday, the Senate had approved a tax incentive for car buyers, sponsored by Senator Barbara A. Mikulski, Democrat of Maryland, that would allow the deduction of sales tax and loan interest on purchases made this year. More
Loading ...
