U.S. House passes stimulus plan, dead in Senate
By Thomas Ferraro
WASHINGTON, Dec 20 (Reuters) - President George W. Bush's revised plan to boost the U.S. economy was declared dead in the Democratic-led U.S. Senate on Thursday -- just hours after the Republican-led U.S. House of Representatives passed the measure on a largely party-line and predawn vote.
``Unfortunately that particular piece of legislation was declared dead before it even got to the Senate floor,'' Bush said as he visited a nearby charitable group.
``For the good of the American people, that bill ought to get out of the United States Senate and get to my desk,'' the president said.
Senate Majority Whip Harry Reid of Nevada said that would not happen. Standing on the Senate floor, Reid called the bill a ``charade'' and said, ``They (Republicans) knew, they know, that it had no chance of passage over here.''
Reid charged -- despite Republican claims to the contrary -- that the package would give too much to corporate interests and not enough to those who need help the most -- the unemployed and those without health insurance.
The House, in a move aimed at giving Bush and congressional Republicans the high ground on the issue of the economy -- particularly heading into next year's House and Senate elections -- passed the measure on a vote of 224-193. Nine Democrats joined the Republican majority to pass the plan.
The package, which would cost the federal treasury $90 billion next year and $214 billion over five years, included tax breaks for businesses and individuals and a new tax credit to help laid-off workers buy health insurance.
The House passed the revised package after negotiations on a bipartisan package between the House and the Senate reached an impasse over health care issues.
``The House of Representative worked until 4:30 this morning, coming up with a stimulus package strictly for political purposes,'' Reid said as the Senate began what was expected to be its final full work day of the year.
CALL FOR EARLY RETURN OF LAWMAKERS
House Speaker Dennis Hastert, an Illinois Republican, scoffed at such charges, and said Bush should call on Congress to cut short its month-long break and return to work on Jan. 2 to take another crack at agreeing on an economic stimulus plan.
``We had the Senate today stick up their nose and turn their back on it,'' Hastert said. ``I think that's unfortunate.''
Senate Majority Leader Tom Daschle, a South Dakota Democrat, replied: ``We are ready to come back at any time. We are ready to do whatever it takes.''
Despite such talk, there appeared to be little interest among lawmakers in taking up the matter again before Congress' scheduled return in late January.
``Uh, no,'' one congressional leader said when asked about Hastert's suggestion. ``I don't think so.''
Bush, in a last-ditch effort, had Treasury Secretary Paul O'Neill talk to Daschle on Thursday, but got more bad news.
``The secretary was surprised to hear that now everything needs to be rediscussed, it's not just the health issues that are a source of concern in the Senate among the Democrats,'' said White House spokesman Ari Fleischer said. ``They now seem to be indicating that there's no agreement on anything.''
Republicans agreed they did not have the 60 votes needed to overcome procedural hurdles in the Senate and pass the House-passed bill. But said they would at least try in order to get members on record on where they stand on the bill.
As Senate Republican Leader Trent Lott of Mississippi put it, ``I would not want to be a senator who would have an opportunity to vote on this very important package right here before Christmas and vote against it.''
A Democratic-backed stimulus package failed to pass the Senate in November because of a procedural challenge by Republicans.
The House first passed a stimulus package in October but that bill, comprised mostly of tax breaks for businesses and individuals, came under sharp criticism because it contained billions of dollars in refunds for corporations as part of a provision repealing the corporate alternative minimum tax.
The revised package passed by the House on Thursday would provide companies relief from the minimum tax but not full repeal. Republicans said the new bill provides unprecedented help for the unemployed, including a new plan to help them pay for health insurance, and blamed Democrats for failure to reach a bipartisan deal that could become law.
``We have been left with no choice but to move forward,'' said House Ways and Means Committee Chairman Bill Thomas, a California Republican. ``It is our constitutional and moral obligation to do so. We believe a bipartisan majority of the Senate will be able to support this balanced approach, if the Senate leadership allows the legislation to reach the floor.''
Rep. Charles Rangel of New York, the top Democrat on the House Ways and Means Committee, said the bill was no bipartisan package despite Republican efforts to portray it as such.
``It's just a couple of Republicans going into the cloakroom coming out wondering what will sound great on television,'' Rangel said.
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