House, Senate at odds over economic stimulus package

The actions came as lawmakers pushed to meet a Feb. 15 deadline in hopes of rushing the checks into peoples\’ hands by May and staving off what would be the second recession of President Bush\’s administration.

The Center for Economic Policy and Research, analyzing records of prior slumps and their after-effects, predicted a Bush recession this year would be felt by workers, in terms of more joblessness and lower incomes, all the way through the 2012 presidential election. That\’s in line with past recessions, including the first Bush recession in 2001. Those slumps hurt workers a lot more and a lot longer than they hurt companies, CEPR said.

The House bill, passed Jan. 29, features the individual checks that Bush, Speaker Nancy Pelosi, D-Calif., and Minority Leader John Boehner, R-Ohio, negotiated and business tax cuts. Bush warned lawmakers in his State of the Union address not to "delay or derail" the deal. The Senate Finance Committee didn\’t listen. Its bipartisan vote expanded the bill to include provisions backed by the labor movement.

The committee, chaired by Senator Max Baucus, D-Mont., extended jobless benefits for an extra 13 weeks, beyond their current 26-week maximum. An additional extension could occur after that for high-unemployment states – notably Michigan – where joblessness is at least 6 percent. Baucus\’ panel also extended the checks to every tax filer, including the rich and low-income people who file returns but owe little or nothing. Baucus\’ plan, which the panel approved on Jan. 30, reduced checks to $500 per adult and $300 per child, maximum.

"The proposal would create a new temporary extension of unemployment compensation that would entitle certain unemployed individuals to unemployment benefits that are not available under current law," the Finance Committee analysis said.

"Individuals who exhausted all rights to regular compensation under state or federal law with respect to a benefit year" that ended before Feb. 1, 2007, "would be eligible for these additional benefits. The amount of the benefit would be the equivalent of the individual\’s weekly regular unemployment compensation benefit," the panel said.

"The terms and conditions of the state law for receipt of regular unemployment benefits would also apply to these benefits, except that the individual must have had 20 weeks of full-time insured employment or the equivalent in insured wages," it added.

Some unions lobbied senators to add even more pro-worker provisions to the stimulus package.

"It is extremely disappointing to hear Congress is considering a band-aid, half-hearted solution to the economic crisis we\’re facing," AFSCME President Gerald McEntee said, in pushing for aid to budget-strapped states to help pay for Medicaid for workers and the poor.

"Congress will be making a big mistake if they pass an economic stimulus deal that ignores the needs of state and local governments. Rebate checks alone are not going to address the crisis facing families who rely on unemployment insurance, food stamps and Medicaid programs," he added. Pelosi also dropped expansion of food stamps from the stimulus package. The Senate plans a vote after Feb. 5 on its bill.

This article was written by Press Associates, Inc., news service. Used by permission.

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