House approves third stimulus tax package; Democrats say it delays jobless aid

Friday, February 15th 2002, 12:00 am

By: News On 6

WASHINGTON (AP) _ Despite long odds, House Republicans are refusing to give up trying to enact legislation intended to boost the sagging economy. Democrats say the GOP drive is delaying much-needed help for the jobless.

For the third time, the House passed a $150 billion economic stimulus package expanding aid to the unemployed and giving broad tax relief to businesses and individuals. The vote Thursday was 225-199, with 10 Democrats joining all but one Republican, Rep. Connie Morella of Maryland, in support.

Despite President Bush's support, Senate Democrats said that, like previous GOP efforts that failed in the Senate, the bill contained too many tax cuts aimed at businesses and people with higher incomes.

``This isn't going anywhere,'' said Senate Majority Leader Tom Daschle, D-S.D. ``I think the Republican leadership should be embarrassed for what they're doing.''

House Speaker Dennis Hastert, R-Ill., took issue with that, repeatedly asking reporters ``Who is Tom Daschle to say'' whether the nation needed an economic stimulus package.

``It's time that we stop playing political games,'' Hastert said. ``It's time that we start producing for the American people.''

Even before the House action, the Senate reaffirmed its support for a straightforward 13-week extension of benefits by approving the measure again Thursday on a unanimous voice vote. The House had attached its latest stimulus package to a similar jobless benefits measure passed last week by the Senate.

Much of Thursday's House debate involved partisan fingerpointing over the failure to agree on a plan to revive the economy.

Democrats accused the GOP of blindly pushing tax cuts for the well-off rather than helping millions of jobless people continue to receive benefits beyond the 26-week limit.

About 2 million people, or almost 81,000 per week, will exhaust their regular unemployment benefits in the first six months of 2002, according to the Center on Budget and Policy Priorities, a think tank that studies the impact of fiscal issues on middle-income people.

Republicans countered that the tax cuts would spur job-creating investment, give consumers more money to spend and help New York City recover from the Sept. 11 attacks. Some argued that Democrats prefer to keep the economy in the doldrums so they can use the issue in the November congressional elections.

``There seem to be some people in Washington who would rather have a bad economy because it helps their party in a poll,'' said Rep. Jack Kingston, R-Ga.

Some fiscal conservatives worried that the bill, whatever its merit, would make the federal budget deficit worse over the next few years, drive up interest costs and force government to borrow even more from Social Security accounts to pay its bills.

``We continue to pile up debt after debt after debt,'' said Rep. John Tanner, D-Tenn.

The legislation, costing about $150 billion over 11 years, is similar to a stimulus bill passed by the House in December. Highlights and 11-year cost estimates include:

_Reducing the 27 percent income tax rate to 25 percent effective in 2002, four years earlier than under current law. Cost: $45 billion.

_Rebate checks of up to $300 for individuals and $600 for married couples who did not qualify for last summer's checks. Cost: $13.7 billion.

_A 13-week extension of unemployment benefits and a tax credit covering up to 60 percent of health insurance premiums paid by laid-off people. Cost: $27.8 billion.

_Bonus depreciation of 30 percent over the next three years for businesses making new investments, such as purchase of equipment. Cost: $12.4 billion over 11 years; $33.5 billion in 2002.