Democrats to Test Unity On Stimulus Proposals

[question everything]

The Wall Street Journal

Democrats to Test Unity On Stimulus Proposals
By SARAH LUECK
January 12, 2008; Page A4

WASHINGTON -- As Congress returns to work, the Democratic majority faces a big test: How to remain unified and pass legislation on a defining election-year issue, even if it means compromising with the president. Armed with ideas to kick-start the economy, Democrats in the House and Senate are intent on advancing economic-stimulus legislation this year, amid a worsening economic picture and concern among voters. To avoid public infighting, Democratic leaders are coordinating their efforts. And, at least initially, they are reaching out to President Bush to test the waters for a bipartisan deal -- a crucial step if a bill is to become law.

But Democrats in Congress and President Bush have little history of working together, and election-year pressures make getting a deal more difficult. Still, both sides are under pressure to be responsive to economic conditions and give their parties an accomplishment to show to voters. Any deal would require big compromises. Democrats are likely to push for expanded unemployment insurance and aid to states. They also are discussing more federal funding for the Medicaid health program for the poor, larger food-stamp payments and accelerated spending on public-works projects -- all ideas likely to prompt Republican opposition.

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One area of common ground: Both sides are interested in distributing rebate checks worth several hundred dollars to provide a quick influx of cash to individuals. But who would get the checks is an open question. Democrats want as many low-income people as possible to get the checks, possibly including people who don't pay income taxes. The White House may prefer a more limited approach. Democrats have not finalized a stimulus package, though aides have been preparing a list of options for lawmakers to consider when they return to work. The House comes back this week, the Senate the following week.

So far, Democrats are coalescing around the principles of "timely, targeted and temporary" for their proposals. In a letter yesterday urging a bipartisan meeting soon on the issue, House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid wrote, "We want to work with you and the Republican leadership of the Congress to immediately develop a legislative plan based upon these principles so it can be passed and implemented into law without delay," the letter said. As they put together their stimulus plan, Democrats acknowledge that compromise likely will entail some help for businesses, and have discussed an investment tax credit or the bonus depreciation write-off espoused by Mr. Bush.

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[sandnsea]

1. Cut the gas tax. Today.

Get SCHIP signed. Put a moratorium on raising mortgage rates for people who own one home with a value under $500,000. That ought to be some serious relief and can be done quickly.