Rifts show as Obama urges quick action on stimulus
By ANDREW TAYLOR
Associated Press
January 9, 2009
Page 2 of 2
"We are not going home without an economic recovery package," she told reporters, and Senate Republican leader Mitch McConnell of Kentucky, at a different appearance, agreed that that allowed enough time to get the job done.
About $300 billion of Obama's package would be for tax cuts or refunds for individuals and businesses.
One tax provision would provide a $500 tax cut for most workers and $1,000 for couples, at a cost of about $140 billion to $150 billion over two years. The individual tax cuts may be awarded through withholding less from worker paychecks, effectively making checks about $10 to $20 larger each week.
Democrats emerging from a closed-door meeting of the Senate Finance Committee had little positive to say about the tax cut proposals. Conrad was critical of the proposed break for workers and their families.
"Twenty bucks a week. How much of a lift is that going to give?" he said.
Nor did he sound positive about a proposed tax break for businesses to create jobs -- a $3,000 tax credit for companies that hire or retrain workers.
"If I'm a business person, it's unlikely if you give me a several thousand dollar credit that I'm going to hire people if I can't sell the products they're producing," Conrad said.
Republicans noted forecasts of a record $1.2 trillion deficit for the current year and said too much additional spending could be harmful. "We can't buy prosperity with more and more government spending," declared Rep. John Boehner of Ohio, the House Republican leader.
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