Senate Republicans blocks Obama's jobs plan
WASHINGTON -- Republicans in the Senate Thursday dealt President Barack Obama the third in a string of defeats on his stimulus-style jobs agenda, blocking a $60 billion measure for building and repairing infrastructure like roads and rail lines.
Supporters of the failed measure said it would have created tens of thousands of construction jobs and lifted the still-struggling economy. But Republicans unanimously opposed it for its tax surcharge on the wealthy and spending totals they said were too high.
The 51-49 vote fell well short of the 60 votes required under Senate procedures to start work on the bill. Every Republican opposed the president, as did Democrat Ben Nelson of Nebraska and former Democrat Joe Lieberman, I-Conn., who still aligns with the party.
Obama's loss was anything but a surprise, but the White House and its Democratic allies continue to press popular ideas from Obama's poll-tested jobs package in what Republicans say is nothing more than a bare-knuckle attempt to gain a political edge by invoking the mantra of jobs but doing little to seek compromise.
"The truth is, Democrats are more interested in building a campaign message than in rebuilding roads and bridges," said Senate GOP Leader Mitch McConnell of Kentucky. "And frankly, the American people deserve a lot better than that."
"Their goal is to do everything they can to drag down this economy, to do anything they can to focus attention negatively on the President of the United States in hopes that he can get my job, perhaps, and that President Obama will be defeated," said Senate Majority Leader Harry Reid said. "So let's not talk about campaign speeches here on the Senate floor. Let's talk about reality."
After Republicans blocked Obama's infrastructure plan, the president's Democratic allies immediately killed a competing GOP infrastructure plan that would have extended existing highway and transit spending programs and paid for the spending with a $40 billion cut in unspent funding for other domestic programs. The White House opposed the measure over its spending cuts and provisions that would block recent clean air rules and make it harder for the administration to issue new rules.
Both of West Virginia's U.S. senators, Democrats Jay Rockefeller and Joe Manchin, voted for the Obama-backed plan. Manchin also voted for the Republican-backed bill --the only Democrat to do so.
Obama unveiled his $447 billion jobs plan in September and has launched a campaign-style effort -- featuring multiple rallies in states crucial to his re-election bid -- to try to get it passed. In votes last month, Republicans blocked the entire $447 billion jobs package and a subsequent attempt by Democrats to pass a $35 billion piece of it aimed at preventing layoffs of teachers and firefighters.
Another political flash point is the way Democrats have sought to pay for Obama's jobs measures -- a surcharge on income exceeding $1 million. The idea enjoys wide backing in opinion polls but is stoutly opposed by Republicans, who say it would hit small business owners and therefore threaten job growth.
With the demise of Thursday's measure, an announcement could come as early as today<co Friday> on what's the next piece of Obama's jobs agenda to break out for a stand-alone vote. Democratic aides say the next measure would be legislation to provide a $4,800 tax credit for hiring an unemployed veteran and increasing the tax credit for hiring a veteran with a service-related disability to up to $9,600.
Republicans back the idea of the veterans hiring tax credit.
Thursday's legislation would have provided an immediate $50 billion investment in roads, bridges, airports and transit systems. It also called for a $10 billion bank to leverage private and public capital for longer-term infrastructure projects.
The measure would be financed by a 0.7 percent surcharge on income over $1 million.