Senate passes jobs bill for Obama’s signature

Measure expected to be first of several in bid to lower unemployment rate
msnbc.com news services 3-17-2010
WASHINGTON - A package of tax breaks and highway spending cleared the U.S. Congress Wednesday, the first of what Democrats hope will be several efforts to bring down the 9.7 percent unemployment rate.
The Senate passed the measure by a vote of 68 to 29 and sent it to President Barack Obama, who is expected to sign it into law. Eleven Republicans joined Democrats in support of the measure.
Obama thanked lawmakers — and Republicans especially — in remarks from the Oval Office. He told reporters that the bill marks the beginning of Congress’ efforts to put the unemployed back to work.
With congressional elections looming in November, Democrats hope to show they are committed to reducing an unemployment rate that has remained stubbornly high even as the economy has begun to recover from the worst recession in decades.
"We have a long way to go — I'm not sugar coating where we are in this economy — but we are moving forward a step at a time and this is a very good step," said Democratic Senator Barbara Boxer.
None of their efforts is likely to approach the scale of last year's $863 billion stimulus package, which has created up to 2.1 million jobs but spurred a backlash among voters concerned about record budget deficits.
The bill sent to Obama includes a $13 billion payroll tax break for businesses that hire unemployed workers. Some economists and liberal lawmakers question that approach, saying it will only go to businesses that planned to expand anyway.
The bill also subsidizes state and local construction bonds and allocates $19.5 billion to shore up a highway-construction program and extend it through the end of the year.
The bill's costs, other than the highway fund, are offset by a crackdown on offshore tax shelters.
The bill won the backing of 11 Republicans, though many had opposed it in previous procedural votes.
Other bills pendingBoth the House and the Senate have passed larger job-creation bills but they have yet to resolve their differences.
The Senate passed a $140 billion package of tax breaks and unemployment aid last week, but House Democratic leaders have indicated they are likely to change it.
The bill closes several tax loopholes to bring down its price tag by roughly $37 billion, but Obama wants to use some of those loopholes to help pay for his massive healthcare overhaul.
The House passed a $154 billion jobs bill in December centered on increased highway spending and state aid, but the Senate has ignored it so far. House lawmakers may try to move those approaches separately or attach them to other bills.
Meanwhile, centrist Democrats want to cut spending or raise taxes elsewhere in the budget to avoid adding further to the budget deficit, which is projected to hit a record $1.5 trillion this fiscal year, according to the nonpartisan Congressional Budget Office.
It could take several weeks to resolve the issue, as healthcare is expected to dominate the agenda before the spring break, which begins March 29. The House was scheduled to vote on a short-term extension of unemployment benefits to avoid disruption when they expire in coming weeks.
Separately, the House could vote later this week on a bill that would cut capital-gains taxes on certain small-business stocks and further expand subsidies for state and local construction bonds.
The AP and Reuters contributed to this report.
2-17 2010