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Wednesday, February 4, 2009

15,000 Stimulus for HOME OWNERS! FORCLOSURE! AND BAD LOANS! YEAH! OBAMA

Within just a few moments of beginning votes on several amendments to the stimulus package, the Senate easily passed by voice vote two measures that were popular on both sides of the aisle.

The swift passage of a tax deduction for homebuyers and a small business provision was yet another sign — like the car-buying incentive passed last night — that the types of items attracting strong Republican support are those that put money in consumers’ pockets or provide tax breaks to persuade them to spend. (Related article by David Herszenhorn.)

Since the Senate began debating the stimulus in earnest on Tuesday, Republican senators have been balking at the size of the stimulus package and the way that it is weighted (in their view) toward spending versus tax cuts. This morning, in opening remarks on the floor, Senate Minority Leader Mitch McConnell began by ticking off amendments that passed on Tuesday night, proposals that added at least $17 billion to the bill. “Unfortunately, Democrats just keep throwing more money on top of an incredibly bloated bill,” Mr. McConnell said earlier today.

(Although $11 billion of the money he mentioned is the estimated cost of the car-purchasing tax deduction — one that received broad G.O.P. support. And $6.5 more billion went toward additional money for the National Institutes of Health, which Republican Senator Arlen Specter backed.)

One proposal promoted by Senator Johnny Isakson of Georgia had bipartisan support even before the vote. It would offer new homebuyers a tax credit of up to $15,000 or 10 percent of the purchase price of a house that could be spread over two years. The proposal, which would double the $7,500 tax credit under current law, is estimated to cost $20 billion. “Ít is the beginning of what is going to be a long climb back,” the senator said earlier.

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