Senate Republicans propose alternative stimulus ($445 billion, 1/2 the cost of the Dem version)

Reuters ^ | 020309 | Richard Cowan and Jeremy Pelofsky

[Fred]

Republicans in the U.S. Senate on Tuesday unveiled their own, cheaper economic stimulus package focused on tax cuts, pushing back against an $885 billion Democratic plan they say encourages too much new spending.

As the Democratic-controlled Senate began thrashing out possible changes to the rescue package President Barack Obama has sought, Republicans indicated they may play hardball ahead of a vote that will require at least some Republican support.

"The American people are beginning to figure out what this package is, that it's not a stimulus package it's a spending package," said Sen. John McCain, an Arizona Republican who lost to Obama in the 2008 presidential election.

The package put forward by McCain and others was priced at $445 billion, half the cost of the Democratic version.

It centered on cutting in half a 6.2 percent payroll tax on employees, cutting the corporate tax rate to 25 percent from 35 percent and lowering the bottom two income tax brackets to 10 percent and 5 percent, all for one year.

McCain and Sens. Lindsey Graham of South Carolina, John Thune of South Dakota, Richard Burr of North Carolina and Mel Martinez of Florida also proposed $11 billion to prevent home foreclosures and $65 billion in state grants to build and repair bridges and roads.

[11th Commandment]

all for one year.

Which will do nothing....

My great grand daddy used to say, "If you shine a turd, it is still a piece of cr*p".

[Kackikat]

There is going to be a so called stimulus bill, and the only question is which one. The dems either pass theirs of the Repubs get some say in it, which may help somewhat. It would be great if they could just chill. If one has to be passed at least support the Repubs making some changes that will prevent half of cost from happening. God bless the Repubs for trying to cut the cost.

[pgyanke]

...all for one year.

I am so sick of this... a tax cut is temporary... a tax increase is forever. Yuck!

This will stimulate people to continue to hoard their cash ahead of next years' tax increases.

[TomGuy]

The package put forward by McCain

Read the fine print. If McCain has anything to do with it, read the fine print.

[EGPWS]

Lesser of two evils with a time frame to boot.

Now I know why I feel like a Washington "one armed bandit" flashing a jack pot.

[skully]

Its still 445 billion too much

[11th Commandment]

This GOP proposal will go nowhere... the problem with the Senate GOP is they are on TV whining about the amendment process. Ordinary people could give a flying RATS behind about the amendment process in the Senate. The only way the GOP can stop or mitigate this disaster is in the court of public opinion. All the amendment process is going to do is only slightly water down this bill by 10% - 20%, force about 10 republicans to vote for it, then when things go south, the GOP is just as guilty as Obama.

[Uncle Miltie]

"It centered on cutting in half a 6.2 percent payroll tax on employees, cutting the corporate tax rate to 25 percent from 35 percent and lowering the bottom two income tax brackets to 10 percent and 5 percent, all for one year."

See tagline. I've been recommending something similar for about 4 days.

[Uncle Miltie]

"Which will do nothing...."

First, do no harm. (See Porkulus).

[Logical me]

It centered on cutting in half a 6.2 percent payroll tax on employees, cutting the corporate tax rate to 25 percent from 35 percent and lowering the bottom two income tax brackets to 10 percent and 5 percent, all for one year.

Bull! This should be permanent!!!!!!! And not sure the corporate cut is enough.

[EGPWS]

President Bush's tax cuts made permanent would solve triple the issues that this politically motivated one year debacle of lawful tripe would create.

[Free America52]

As an individual and business person, I’m all in favor of tax cuts. I like the Republican tax cuts.

[mouse1]

This stinks! I have been a payroll manager for over 20 years. The 6.2% tax on your check is not federal tax, it is social security. If you dont believe me, check your paystub. So, what are they going to do when the s.s. systems crashes years before what they predicted. Oh yeah, they will just raise your taxes. You know Washington is not going to give anything away for free!!

[Fred]

Might I suggest, that if by some miracle, we get these tax cuts and they work (real stimulus) then the Repubs can amend the law to extend the tax cuts or make them permanent...

[Fred]

Ahh, social security??? What social security??? I prefer to keep my money instead of flushing down into the SS rathole...

[JSteff]

“$11 billion to prevent home foreclosures”

Those all need to die anyway. However, one must remember this proposed by McCain who cares deeply about the illegal problem in this country.

[JSteff]

“force about 10 republicans to vote for it, then when things go south, the GOP is just as guilty as Obama.”

Yeah, how can they not see that is the setup Harry and Obama is hoping for?

They are all probably terrible poker players.

[EQAndyBuzz]

“It centered on cutting in half a 6.2 percent payroll tax on employees, cutting the corporate tax rate to 25 percent from 35 percent and lowering the bottom two income tax brackets to 10 percent and 5 percent, all for one year.”

It puts money back into the hands of the people.

I have no problem with that.

[tobyhill]

While I disagree with this whole pork package, this is a smart move. The GOP shouldn't vote on anything that exceeds this amount and then yell to the top of their lungs that the Rats are blowing taxpayer's money way beyond what is really needed when it does exceed that amount.