Stimulus 2 Up For A Vote In The Senate This Week

By Richard West

Another stimulus bill is up for a vote in the Senate this week – what Democrats have been calling the jobs bill – with the country’s economic woes firmly the focus. Elected representatives are facing significant public pressure to do something about the economy, specifically the high unemployment rate. Instead of one large second stimulus, Senators want to split it into smaller jobs bills that are less likely to incite widespread opposition.

Proposed Job-Creation Measures

Though it hasn’t been officially announced, the jobs bill under consideration is said to cost $81 billion. Provisions include a proposal whereby companies would not have to pay an employee’s 2010 6.2% Social Security payroll tax if they hire an unemployed worker. If the worker is kept for a year, the company would then get a $1,000 tax credit. Another provision allows companies to write off job-creating investments in one year rather than over several years. The bill also extends unemployment and COBRA benefits as well as certain tax breaks, like those for research and development. It may also extend funding authorization for transportation projects and delay a cut in Medicare payments to physicians.

Renewed Bipartisanship

Despite all the discussed proposals, Senate Democrats haven’t officially announced what’s in the bill, cautioning that it could still change. This is to give them time to drum up bipartisan support. The focus on bipartisan support comes after Republican Scott Brown’s election to the Senate in Massachusetts, taking the late Ted Kennedy’s seat in what is widely seen as a blow to the Democrats. Brown’s election broke the Democrats’ filibuster-proof majority, meaning Democrats will need some Republican support. President Obama has also been making overtures to Republicans, including a Q&A with House Republicans last week and inviting a Republican to his Super Bowl party. Even so, Senate Majority Leader Harry Reid has called for a cloture vote on Feb. 8, with or without Republican support. That would clear the way for final passage of the jobs bill sometime later that week.

If the Senate did pass a bill, it still has to contend with the House Democrats, who are openly disdainful of the Senate’s move to split the second stimulus bill into several smaller pieces. The House passed a $154 billion jobs bill in late 2009, with which any new Senate legislation would need to be reconciled.