Economic Stimulus a Done Deal

McCain no-show raises eyebrows

By Kaye A. Thomas
Posted February 8, 2008

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House accepts Senate sweeteners, sends bill to President Bush.

Senate consideration of the economic stimulus bill was not without political jockeying, but it seemed perfunctory, like the 1.5 seconds spent gazing at the Grand Canyon in National Lampoon's Vacation. The final bill has now been approved by both houses of Congress. Here's what happened within the space of a few days:

  • Max Baucus, Democratic chairman of the Senate Finance Committee, negotiated a revised version of the legislation with ranking Republican member Charles Grassley. Despite Grassley's involvement, the outcome was seen as a Democratic alternative to the bipartisan deal struck in the House of Representatives because it included an extension of unemployment benefits and heating assistance for the poor, provisions that were highly objectionable to most Senate Republicans. This version also included provisions favored by many Republicans, including an extension of benefits to many senior citizens and disabled veterans.
  • The Senate Finance Committee approved the legislation with only Grassley and one other Republican joining the Democrats.
  • Republicans used a filibuster threat to block consideration in the full Senate. Democrats needed nine votes from Republicans for a cloture vote that would make it possible to pass the law.
  • In an attempt to extract more votes from Republican senators, especially those up for re-election this year, Democratic majority leader Harry Reid said he wouldn't allow consideration of amendments other than the package approved by the Finance Committee. That meant a vote against the bill could be seen as a vote against popular provisions extending benefits to senior citizens and disabled veterans.
  • A showdown was delayed until Wednesday (the day after the Super Tuesday primary) so the senators running for president could be present. The vote presented Republican John McCain with the awkward choice between voting against a benefit for seniors and disabled veterans or breaking with his party in a way that would be certain to anger conservatives. As it developed, his vote would be decisive: eight of his Republican colleagues joined 51 Democrats and Independents in a cloture vote. But McCain didn't arrive in time for the vote, leading some to suggest he intentionally dodged a politically uncomfortable choice. His absence had the same effect as a vote against cloture.
  • Initial indications were that Democrats would try to change the minds of one or two Republicans and keep the measure alive, but these efforts were quickly abandoned.
  • Reid relented in his opposition to other amendments, allowing the addition of benefits for seniors and disabled veterans. The Senate also added a provision designed to prevent illegal aliens from receiving rebate checks. As amended, the bill passed the Senate with a large majority and was quickly approved by the House.

Result

The result is a bill that more closely resembles the version originally passed by the House than the Senate Finance Committee alternative. Most taxpayers will receive a rebate of $600 ($1,200 for couples filing jointly) plus $300 for each qualifying child. Eligibility for the rebate phases out for those with income above $75,000 ($150,000 for couples filing jointly). Among low-income individuals, the rebate is limited to the amount of income tax, except that a minimum $300 rebate goes to anyone with at least $3,000 in qualifying income. Here is where the Senate amendments make a difference, as the House version required $3,000 of earned income for this $300 minimum check, but the Senate version also allows people to qualify with Social Security benefits or veterans' disability benefits (including benefits to survivors of veterans).

The Treasury expects to begin sending the checks in May.

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