WASHINGTON -- The Senate voted Wednesday night to give a tax break of up to $15,000 to homebuyers in hopes of revitalizing the housing industry, a victory for Republicans eager to leave their mark on a mammoth economic stimulus bill at the heart of President Barack Obama's recovery plan.
The Senate also softened a labor-backed "Buy American" provision in the bill that would require U.S.-made iron or steel be used in construction projects paid for by the stimulus package after Obama expressed concern the original language could trigger a trade war.
The change gives Mexico, Canada, the European Union and certain other major trading partners some comfort they would be exempted after a move by Sen. John McCain, R-Ariz., to delete the "Buy American" requirement failed, 31-65.
The tax break for homebuyers adds $19 billion to the bill and was approved without dissent. It came on a day in which Obama pushed back pointedly against Republican critics of the legislation even as he reached across party lines to consider a reduction in the spending it contains.
"Let's not make the perfect the enemy of the essential," Obama said as Senate Republicans stepped up their criticism of the bill's spending and pressed for additional tax cuts and relief for homeowners. He warned that failure to act quickly "will turn crisis into a catastrophe and guarantee a longer recession."
Democratic leaders have pledged to have legislation ready for Obama's signature by the end of next week.
While they concede privately they will have to accept some spending reductions along the way, conservative Republicans failed in their initial attempts to force deep cuts in the bill.
Democrats also preserved a key priority for Obama, a break of up to $1,000 for couples who pay payroll taxes but whose earnings are so low they do not pay income tax.
The Senate also softened a labor-backed "Buy American" provision in the bill that would require U.S.-made iron or steel be used in construction projects paid for by the stimulus package after Obama expressed concern the original language could trigger a trade war.
The change gives Mexico, Canada, the European Union and certain other major trading partners some comfort they would be exempted after a move by Sen. John McCain, R-Ariz., to delete the "Buy American" requirement failed, 31-65.
The tax break for homebuyers adds $19 billion to the bill and was approved without dissent. It came on a day in which Obama pushed back pointedly against Republican critics of the legislation even as he reached across party lines to consider a reduction in the spending it contains.
"Let's not make the perfect the enemy of the essential," Obama said as Senate Republicans stepped up their criticism of the bill's spending and pressed for additional tax cuts and relief for homeowners. He warned that failure to act quickly "will turn crisis into a catastrophe and guarantee a longer recession."
Democratic leaders have pledged to have legislation ready for Obama's signature by the end of next week.
While they concede privately they will have to accept some spending reductions along the way, conservative Republicans failed in their initial attempts to force deep cuts in the bill.
Democrats also preserved a key priority for Obama, a break of up to $1,000 for couples who pay payroll taxes but whose earnings are so low they do not pay income tax.
No comments:
Post a Comment