GOP blames Pelosi for snag in stimulus bill
Senate Republicans blamed House Speaker Nancy Pelosi of San Francisco Wednesday for tripping up President Obama’s $902 billion stimulus bill, as the giant legislation remained in the Senate, hostage to GOP demands for more tax cuts and less spending.
Republicans won a major victory with unanimous approval of an amendment late Wednesday that would give home buyers a tax credit of up to $15,000, or 10 percent of the value of new or existing residences. Sponsor Sen. Johnny Isakson of Georgia said a similar credit in 1974 helped revive the housing market then. The amendment could add $19 billion to the bill’s cost.
Obama, after weeks of making overtures to Republicans, warned that “a failure to act, and act now, will turn crisis into catastrophe.” He said GOP criticisms “echo the very same failed economic theories that lead us into this crisis in the first place: the notion that tax cuts alone will solve all our problems; that we can ignore fundamental challenges like energy independence and the high cost of health care.”