House Approves Stimulus Package

The House approved an $819 two-year stimulus package Wednesday. One of the largest in history, the package would cost more than the Iraq War, according to the Wall Street Journal.

The bill reshapes policy on energy, education, health care and social programs and reverses the Bush administration’s approach to stimulating the economy, the Journal reported.

The stimulus package passed with 244 votes from House Democrats and not a single Republican vote. Republican opponents criticized the bill as policy demands of Democrats that “throw billions of dollars in every bureaucratic direction,” Rep. Ken Calvert said, according to the Wall Street Journal.

Democrats countered that it was better than taking no action. “We need to compare the cost of this package against the cost of doing nothing. The cost of doing nothing would be catastrophic,” Rep. David Obey said.

As the Senate takes up the legislation on Monday, Republicans will likely seek to add more business-friendly provisions, such as extending tax breaks for timber companies, and adding tax benefit to encourage corporate debt restructuring, accord to the Journal. A proposal added in the Senate would allow companies to defer 2009 and 2010 taxes for restructuring or retiring debt. As drafted, the bill would require companies to eventually pay back the taxes and only applies when companies use cash to buy back debt, the Journal reported.

The Senate version could also include a patch for the AMT.

Among its provisions, the House bill:
• Expands access to health care for the unemployed.
• Expands the federal government’s reach into education financing with $125 billion for bolstering education, including spending on building renovations, helping states avoid education layoffs, and funding for special programs.
• Provides $5 billion in funding for construction and repair of public housing.
• Provides $27 billion for unemployment insurance benefits.
• Provides a $500 payroll tax holiday for working individuals.