Associated Press
WASHINGTON — Democrats are pushing worker-relief legislation in talks with Republicans about an economic stimulus plan that would include extension of unemployment benefits, federal health insurance support and possibly a $1.50-an-hour minimum wage increase.
A document circulated Thursday by Sen. Edward Kennedy also listed as priorities $2 billion in job training for dislocated workers and $1 billion in extra home heating assistance for low-income people.
"To get our economy back on track, we need an economic stimulus that puts money directly in the hands of all workers," said Kennedy, D-Mass., who is chairman of the Senate Health, Education, Labor and Pensions Committee.
The total package would cost up to $31 billion over one year, according to preliminary estimates. That does not include what Kennedy listed as "additional possibilities," including a tax credit for the payroll taxes workers pay into Social Security costing up to $40 billion and expansion of a low-income children’s health program to cover parents as well.
Layoffs resulting from the economic downturn, made worse by the Sept. 11 terror attacks, make relief to workers a crucial part of any economic stimulus plan, Democrats say. Most of the focus up to now has been on business and investment tax relief sought by Republicans, such as cuts in capital gains and corporate taxes and business investment credits.
"It’s hard to go back to an ordinary life if you have no income and you lose your health benefits," said Dan Maffei, spokesman for Democrats on the House Ways and Means Committee.
While Kennedy’s proposals may amount to a Democratic wish list, the drive for a bipartisan economic stimulus plan makes it more likely that some of the items could be included.
"We look forward to reviewing any and all ideas," said Barbara Clay, GOP spokeswoman for the Ways and Means Committee.
Concepts listed by Kennedy and other Democrats include:
Some Democrats want to consider these worker relief items in a separate package, while others want to add even more items. Democrats in the liberal House Progressive Caucus are also talking about increased spending on roads, schools and other infrastructure along with tax relief and aid to workers.
No decisions have been made on any components of an economic stimulus plan, but there is growing sentiment on Capitol Hill and in the Bush administration that a package will be necessary. Just when to move ahead depends in part on Federal Reserve Chairman Alan Greenspan, who has so far counseled a go-slow approach.
Senate Finance Committee Chairman Max Baucus, D-Mont., said Wednesday that there is "a firming up belief that … we have to act."
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