Pelosi Backs Including Tax Cut in U.S. Economic Stimulus Plan
By Ryan J. Donmoyer
bloomberg.com
Nov. 7 (Bloomberg) -- House Speaker Nancy Pelosi will seek to add a tax cut to an economic stimulus measure Congress will consider early next year, her spokesman said.
``In terms of a tax cut, yes, we want it to happen,'' Nadeam Elshami, her spokesman, said yesterday. Details would have to be worked out with President-elect Barack Obama and committee chairmen including House Ways and Means Committee Chairman Charles Rangel of New York.
Democrats are considering passing two stimulus measures, one during a so-called lame duck session this month and another after Obama and the larger Democratic majority in the House and Senate take office in January. Previously, Democrats have said stimulus measures would focus on expanding public-works projects and aiding states.
Matthew Beck, a spokesman for the House Ways and Means Committee, also said tax provisions were part of discussions between congressional leaders and Obama.
``There is no question that we will hit the ground running in January with hearings and legislation to restore economic security for American families, and tax policy will be central to that discussion,'' he said.
Pelosi yesterday said she would try to negotiate with the Senate and outgoing President George W. Bush to win passage of a $61 billion stimulus measure approved by the House in September. The new Congress may tackle a second measure after Obama takes office Jan. 20.
Pelosi discussed the possibility of including a tax cut in the stimulus in an interview with the Wall Street Journal. She told the Journal she favored direct tax cuts rather than a new round of tax rebates like the lump-sum checks sent to taxpayers last year. The impact of direct tax cuts is faster as employers withhold less from paychecks.
The U.S. Chamber of Commerce is also preparing to ask Congress for tax cuts and other business-friendly provisions in the stimulus measure, said spokesman J.P. Fielder.
To contact the reporter on this story: Ryan J. Donmoyer in Washington at rdonmoyer@bloomberg.net
Last Updated: November 7, 2008 00:52 EST |
