Tuesday, February 3, 2009

Senate Rejects Infrastructure Increases

By a vote of 59 to 39 during the floor debate, the Senate this afternoon rejected a proposed amendment to the economic stimulus bill which would have added $25 billion in infrastructure appropriations. The amendment, offered by Senator Patty Murray of Washington, would have added $13 billion for highway construction, $5 billion for transit construction, and $7 billion for EPA water and sewer construction projects. It also would have increased the total cost of the measure to $1.1 trillion. According to House Majority Leader Steny Hoyer, the goal is to keep the price of stimulus under $900 billion.

Hoyer also suggested that when the measure goes to a Conference Committee, the Senate's strong "buy American" language may be cut back to match the House provision limiting the restriction to steel used in construction projects. Foreign trading partner nations that purchase a lot of U. S. exports are already threatening retaliatory legislation against American made exports should the bill become law with the stronger Senate protectionist provisions.

Another floor battle is brewing as immigrant advocates press for the Senate to remove the House provision requiring businesses awarded contracts paid for by these appropriations to use the federal E-verify system to eliminate illegal immigrants from their work forces. Representative Jack Kingston of Georgia, who sponsored the E-verify requirement in the House measure, said: "We cannot allow for illegal aliens to benefit from this deficit spending. The American taxpayer will one day be forced to pay it back so it should be them that benefit."

Two other controversial amendments still being debated would temporarily reduce the corporate tax rate on repatriated foreign earnings from 35% to 5.25%, in hopes of spurring investment of these earnings in American jobs and investment; and grant an above the line tax deduction for interest on new car loans up to $49,500 for families earning under a quarter million dollars a year, in hopes of spurring new car sales.
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