Democrats Indicate Areas of Compromise on Stimulus

As the economic stimulus package is going through the Senate, Democratic senators have shown signs of considering Republican amendments to the bill, specifically in the portions of housing and infrastructure spending. One Republican proposal Democrats are considering is instituting a $15,000 tax credit for all home buyers, raising it from its original $7,500 tax credit. Senator Charles E. Schumer (Democrat-New York), a member of the Finance Committe, said he was also interested in lowering mortgage rates to 4.5 percent, but also said that that might go into the next part of the bailout measure approved by Congress last year, not this stimulus package. Senators of both parties also said that they expect to add a large amount of money, approximately $20 billion to $30 billion, for infrastructure spending, such as for roads and bridges. The Obama administration and Democrats have already struck two parts of the bill passed by the House, which was $200 million to fix up the National Mall and millions for family planning that Republicans claimed financed contraceptives.

However, there are still numerous disagreements. Senator Jon Kyl (Republican0-Arizona) criticized the Obama administration's $500 tax credit to working families, which some economists say will not result in sufficient additional spending. He also criticized the creation of numerous new government programs and giving billions of dollars to the states. Senator Kay Bailey Hutchinson (Republican-Texas) wanted cuts on "social spending provisions" that total around $200 million in the bill. She, and some fellow Republicans, feel additional tax cuts would be more effective than large-scale government spending programs. Senator Kyl warned that Republicans will not support the bill until there are "major structural changes to it."

Now, Super Bowl time!