The Senate’s stalling of the so-called stimulus bill that zoomed through the House last week without serious discussion is a good sign the democratic process is working as the framers of the Constitution intended.
Republicans and a few bold Democrats who have argued that portions of the bill not directly tied to job creation should be set aside for separate debate have essentially ensured this mega-spending bill will get the attention and review it deserves.
The size of the nearly $1 trillion plan could take a generation or longer to repay — and it might not even work. The Senate, the more deliberative body of Congress, needs to dig into this bill thoroughly.
The Senate should address more spending on vital infrastructure projects, and a package of tax credits for consumers and businesses.
We were disappointed to see the relatively small amount — $30 billion — the House bill allotted to highway spending. So we are hopeful that a stalled effort to nearly double the spending by adding $25 billion in the Senate’s draft may be revived.
Efforts to ease mortgage payments and incentives for homebuyers also seem worthy of debate. The plans include an idea to provide 30-year fixed mortgages at interest rates of about 4 percent, and a proposal to provide a tax credit of up to $15,000 for anyone who buys a home this year. The present plan offers $7,500 in credits and is limited to first-time buyers.
Making interest payments and sales taxes on the purchase of new cars deductible seems worthwhile as well.
We also are curious about a plan to temporarily cut the tax rate for multinational corporations that return money they’re stashing in overseas tax havens back into the U.S. economy.
Tried for a year in 2004, the plan would cut the tax rate from 35 percent to 5.25 percent.
The argument for the temporary cut is that it would help large corporations infuse their coffers with cash they would spend to keep or create jobs, raise salaries and make investments beneficial to any effort of stimulating the economy. A study supported by the Information Technology Industry Council says such a move could bring $421 billion back to the states.
Critics argue that the tax cut is too targeted to a small pool of major corporations and that executives would merely stockpile the money or increase investor profits.
The proposal at least deserves debate.
Meanwhile, public support for the Democrats’ bill has dropped from 45 percent two weeks ago to 37 percent now, according to polling conducted by Rasmussen Reports. Support for a Republican plan to stimulate the economy solely from tax cuts sits at about 45 percent.
We mention it because we hope our elected representatives are paying attention to the mood of the public as this massive bill moves forward.
