House passes stimulus bill; Senate to vote tonight

The House of Representatives this afternoon approved by a vote of 246-183 a $787 billion stimulus bill in the hope that it will help the United States out of the economic crisis.
No Republicans supported the bill, and seven Democrats voted against it as well.
The Senate is to vote on the American Recovery and Reinvestment Act of 2009 today, and the legislation is expected to be approved and sent to President Obama for his signature.
“The American people need action, and they need action now,” said House Speaker Nancy Pelosi, D-Calif.
The legislation will create new jobs for 3.6 million Americans who have been put out of work since the recession began in December 2007, she said.
The bill also includes spending on health, education, science and clean energy, as well as spending on projects for roads, bridges, transit systems and waterways. It contains $463 billion in spending provisions and $326 billion in tax provisions.
House Democrats said the bill is not as large as they would have liked, while Republicans argued that it does not contain enough tax cuts.
“If this bill works, we will create 3½ million jobs,” Majority Leader Steny Hoyer, D-Md., said. “Am I absolutely assured that it will? I am not,” he said. But many economists have counseled Congress that “we have to act, we have to act with speed, and we have to act substantively, and we have to act with large investments,” he said.
Ninety-five million low- and moderate-income workers would receive refundable tax credits of up to $400 for individuals and $800 for joint filers under the legislation. A refundable tax credit is a benefit that can exceed what is paid in taxes.
Republicans said they also want a bill but that the bill is too heavily tilted toward spending.
“A bill that was supposed to be about jobs, jobs, jobs, has turned into a bill that’s all about spending, spending and spending,” said House Minority Leader John Boehner, R-Ohio.
Only 11% of the appropriations will be spent this year, argued Rep. Jerry Lewis, R-Calif., ranking minority member of the Appropriations Committee, with 53% of the spending not coming until after October 2011. President Obama has implored Congress to pass the stimulus bill to give immediate help to the economy.
The bill includes a one-year alternative minimum tax “patch,” which will prevent middle-income taxpayers from being subject to that tax in 2009. That would save taxpayers an estimated $70 billion.
Among the tax credits included in the bill are education tax credits of up to $2,500 for college costs in 2009 and 2010, and a provision that eliminates a repayment obligation for first-time homebuyers who received refundable credits for government loans last year and increases the value of the credit to a maximum of $8,000. The bill also extends unemployment benefits.