House GOP pushes new economic recovery package in bid for Democratic support

By Curt Anderson

Associated Press

WASHINGTON – Shifting gears on the economy, House Republicans decided Wednesday to bring to a vote a package of jobless aid and business tax cuts while removing controversial items in hopes of attracting solid Democratic support.

House Ways and Means Committee Chairman Bill Thomas, R-Calif., said the legislation did not contain proposals that “violate Democratic theology,” such as a tax credit aimed at helping the unemployed pay health insurance premiums or accelerated income tax cuts.

“We’re trying to solve the problem,” Thomas told reporters. “We’re trying to remove their theological objections.”

The package, expected to come to a vote Thursday in the House, is composed of items many Democrats have previously backed. These include a 13-week extension of unemployment benefits, a three-year, 30 percent tax writeoff for new business investment, $5 billion in tax relief to help New York recovery efforts and renewal of a list of popular tax breaks that expired.

Total cost was estimated at $94 billion over five years.

Democratic leaders reacted cautiously, but many Democrats were optimistic that the measure could break the months-long partisan logjam over how to address the economic downturn.

“This is something that we could have done a long time ago,” said Rep. Earl Pomeroy, D-N.D. “If it’s limited to that, I think we could have strong bipartisan agreement.”

Passage of the measure would mark the fourth time the Republican-led House, at the urging of President Bush, has approved broad economic legislation since the Sept. 11 terror attacks. The Democratic-led Senate has twice passed only the jobless benefits extension.

House GOP leaders had planned a vote Wednesday on a bill containing the jobless benefits extension and the health insurance tax credit. That bill was abruptly pulled from the calendar after a closed-door meeting of House Republicans at which several rank-and-file members raised concern about the election-year ramifications of continued delay in addressing economic ills, according to several GOP aides speaking on condition of anonymity.

The shift initially caught Democrats by surprise. News of the change came as Senate Majority Leader Tom Daschle and House Minority Leader Dick Gephardt were in the middle of a news conference Wednesday morning to accuse the GOP of playing politics with the jobless nearly six months after Sept. 11.

Democrats have been pounding on Republicans to take up and pass the straightfoward unemployment benefits extension, pointing to the estimated 1.3 million people who have exhausted their regular 26 weeks of aid since Sept. 11. In January, there were about 7.9 million unemployed people in America.

Asked about the GOP’s change, Gephardt said: “I hope they will now do what we’ve been talking about … My fear is they’ll come back tomorrow with another bill that has even more extraneous matters on it, and we’ll be right back to where we started from.”

Yet Daschle and other Democrats have expressed support for some business tax relief. Daschle, D-S.D., said Wednesday that because signs of economic recovery could change in the coming months “I think passage of an economic stimulus plan would still make sense if we could reach a consensus.”

But he also said that a broader package was not as pressing as an extension of unemployment benefits.

“I want to see the (House) bill before I make any decisions about it,” Daschle said. “All I know is we’ve got something far more immediate and far more urgent and far more important than anything else right now.”

Copyright ©2002 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Customers enter and exit the Costco on Dec. 2, 2022, in Lake Stevens. (Olivia Vanni / The Herald)
Costco stores could be impacted by looming truck driver strike threat

Truck drivers who deliver groceries and produce to Costco warehouses… Continue reading

Two Washington State ferries pass along the route between Mukilteo and Clinton as scuba divers swim near the shore Sunday, Oct. 22, 2023, in Mukilteo, Washington. (Ryan Berry / The Herald)
Ferry system increases ridership by a half million in 2024

Edmonds-Kingston route remains second-busiest route in the system.

Jasmine Donahue talks about being a place for people leave messages when looking for family members, friends or loved ones on the street on Thursday, Jan. 9, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Everett extends deadline for homeless service facing closure

Hope ‘N Wellness must now comply with city zoning laws by April 30. The organization is “grateful,” its owner said, but still hopes for a permanent solution.

New Greater Everett Chamber of Commerce CEO CEO Wendy Poischbeg speaks at a kick off event on Wednesday, Jan. 15, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
‘Everett Rising’: Wednesday’s chamber luncheon to showcase a new era of growth.

The Greater Everett Chamber of Commerce is beginning its efforts… Continue reading

The Edmonds School District building on Friday, Feb. 14, 2025 in Lynnwood, Washington. (Olivia Vanni / The Herald)
Edmonds School District faces estimated $8.5 million deficit

The shortfall is lower than previous years, but the effects are “cumulative,” Superintendent Rebecca Miner said.

Robin Cain with 50 of her marathon medals hanging on a display board she made with her father on Thursday, Jan. 2, 2025 in Lake Stevens, Washington. (Olivia Vanni / The Herald)
Running a marathon is hard. She ran one in every state.

Robin Cain, of Lake Stevens, is one of only a few thousand people to ever achieve the feat.

People line up to grab food at the Everett Recovery Cafe on Wednesday, Dec. 4, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Coffee, meals and compassion are free at the Everett Recovery Cafe

The free, membership-based day center offers free coffee and meals and more importantly, camaraderie and recovery support.

Hundreds rally against Trump on Presidents Day in Everett

People lined Broadway with signs and flags, similar to other protests across the country.

The Everett Wastewater Treatment Plant along the Snohomish River on Thursday, June 16, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Everett water, sewer rates could jump 43% by 2028

The rate hikes would pay for improvements to the city’s sewer infrastructure.

The bond funded new track and field at Northshore Middle School on Thursday, Oct. 24, 2024 in Bothell, Washington. (Courtesy of Northshore School District)
Northshore School District bond improvements underway

The $425 million bond is funding new track and field complexes, playgrounds and phase one of two school replacements.

Alina Langbehn, 6, center, and Vera A., 6, right, sit on a swing together at Drew Nielsen Neighborhood Park after school on Tuesday, Jan. 28, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Everett council votes to renovate Drew Nielsen Park

Construction on the $345,000 upgrade could start as early as this fall.

Northshore School District bus driver Stewart O’Leary pictured next to his buses shattered drivers side windshield on Friday, Feb. 14, 2025 in Bothell, Washington. (Olivia Vanni / The Herald)
‘Put me in, coach’: Bus driver back at work after struck by metal bar

Stewart O’Leary, a Northshore employee, has received national attention for his composure during a frightening bus trip.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.