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Will Bush Have to Buck His Own Party on the Stimulus?

As Capitol Briefing wrote yesterday, some conservatives weren't thrilled with all the happy talk about a bi-partisan stimulus package.

Today the conservative Republican Study Committee unveiled its own stimulus package in hopes of influencing the current debate in a direction more amenable to the right.

The plan, dubbed the Economic Growth Act of 2008, includes four key planks:

1) Allowing businesses to immediately expense or deduct the full costs of assets they buy in the same year they buy them, rather than spreading those deductions over several years

2) Cutting the top corporate tax rate from 35 percent to 25 percent

3) Indexing for inflation the cost basis used when calculating the capital gains tax for the sale of assets

4) Simplifying the capital gains rate structure by allowing corporations to pay a 15 percent rate rather than the current 35 percent

House conservatives assembled at today's press conference told reporters that this package would be far more effective at actually stimulating the economy than handing out tax rebates to ordinary citizens -- a potential provision in a bi-partisan stimulus plan.

RSC members are walking a fine line here, and today they alternated between criticizing the current ideas under discussion and saying that rebates might be just fine, as long as Congress also moves provisions that will help businesses and investors.

"The handing out of rebate checks will have a de minimis impact on the economy," predicted Rep. Scott Garrett (R-N.J.), while Rep. Paul Ryan (R-Wis.) warned against "some press-release driven stimulus package that at the end of the day doesn't grow one job."

As for whether GOP conservatives will support the deal currently being cut by their own leaders with Democrats and President Bush, the members who spoke today wouldn't commit either way until they see the final bill.

Of course, if Bush and most Democrats are on board, the package won't need conservatives' votes to pass -- at least, not in the House. In the past, President Bush has not made a habit of cutting deals with Democrats over the opposition of his own party -- a form of political "triangulation": throwing political opponents off guard by choosing to agree with them on certain issues. (For a good historical example of this dynamic, recall President Clinton's deal with the GOP on welfare reform.)

In the end, Capitol Briefing still expects most conservatives will vote for the stimulus package even if it doesn't contain the items they want, for the simple reason that members may have a tough time politically if they vote against rebates.

By Ben Pershing  |  January 23, 2008; 1:44 PM ET
Categories:  Agenda , GOP Leaders , Purse Strings  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: Will Stimulus Train Leave Conservatives Behind?
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Comments

I'm a conservative, but I'll be pretty PO'd if businesses get some of their tax money back but I don't.

I have no problem with cutting business tax rates, but individuals deserve the benefits too, since we are also paying the taxes.

Posted by: HokiePaul | January 23, 2008 3:36 PM | Report abuse

We ABSOLUTELY DO NOT NEED A STIMULUS PACKAGE!!!

World financial markets are jittery and yes, some profit-taking has been going on the last few days but all-in-all it's just a small market correction.

The economy IS slowing, but historically in a presidential election year, we have some slowing and increased volatility in financial markets simply due to the uncertainty surrounding the election. This year, we don't even have a clear front-runner in either party so the next president could be any one of half a dozen contenders! Talk about uncertainty!

What we DO need is a long-term strategy to rescue our economic future from the hands of multinational corporate interest. That is something NONE OF THE CANDIDATES will ever talk about!

Posted by: JohnnyBravo1999 | January 23, 2008 4:03 PM | Report abuse

we need more money sloshing around the economy like hillary clinton needs a thrid butt cheek

Posted by: aba shaver | January 24, 2008 1:55 PM | Report abuse

Why not end all taxes and just have voluntary payments. If the Conservatives like the Iraqi war, they can contribute to it.
Me, I'll contribute to social programs.
This is the way to "true economic freedom".
Hey, why not!!!!!!

Posted by: Ted L | January 24, 2008 2:15 PM | Report abuse

Cutting the corporate capital gains rate from 35% to 15% is called "simplifying the rate structure."

Orwell just did another flip.

Posted by: johnalene | January 24, 2008 3:26 PM | Report abuse

Foreign market forces,and overspending by
our goverment,are smacking the hammer down
on our factories,and our wallets.
A long term strategie is the only way to
compete with Europe and Asia.The immediate
political convinient solution, throwing
billions of dollars at the average taxpayer
does not buy new machinery,or new factories,roads,bridges ect.The money given
away,to the lower end of consumers,is
considered a windfall by them,because this
group does not pay taxes,and allready get
what's called a "income tax credit"Somebody
else has to pay for it with taxes,
robbing Peter to pay Paul does not get the
economy back on track.Our corporation tax
rate,is the second highest in the world
[Japan is #1].This is part of the reason,
corporations are leaving.Reducing,or eliminating the capital gains for corporations,and individuals,including all
401-K's and pensionfonds.This would be a
meaningful taxbreak for all taxpayers,and
also encourage savings by the lower income groups.Giving meaningful taxbreaks to corporations,could turn the tide,and encourage some of them to move back in to
the US.Foreign corporations would take advantage of lower taxes,expanding their
operations,competing for a available labor-
force with higher wages.Looking at our
Politicians,pandering for votes,doing nothing to preserve good paying jobs,throwing money at people to buy goods made in China,tells me,the ignorand are
taken advantage off.Public education will teach political correctness and selfesteem,but simple economics are a foreign subject.Young adults,growing up with videogames and MTV,claiming superior
knowledge of politics,rallying behind the
underachiever,supporting canditates that
have nothing to offer but empty words and
slogans,is this what this country needs?I
hope that the one canditate I support, makes a strong statement on this subject.
Vote MITT ROMNEY.

Posted by: Viktor Popp | January 27, 2008 11:33 AM | Report abuse

Foreign market forces,and overspending by
our goverment,are smacking the hammer down
on our factories,and our wallets.
A long term strategie is the only way to
compete with Europe and Asia.The immediate
political convinient solution, throwing
billions of dollars at the average taxpayer
does not buy new machinery,or new factories,roads,bridges ect.The money given
away,to the lower end of consumers,is
considered a windfall by them,because this
group does not pay taxes,and allready get
what's called a "income tax credit"Somebody
else has to pay for it with taxes,
robbing Peter to pay Paul does not get the
economy back on track.Our corporation tax
rate,is the second highest in the world
[Japan is #1].This is part of the reason,
corporations are leaving.Reducing,or eliminating the capital gains for corporations,and individuals,including all
401-K's and pensionfonds.This would be a
meaningful taxbreak for all taxpayers,and
also encourage savings by the lower income groups.Giving meaningful taxbreaks to corporations,could turn the tide,and encourage some of them to move back in to
the US.Foreign corporations would take advantage of lower taxes,expanding their
operations,competing for a available labor-
force with higher wages.Looking at our
Politicians,pandering for votes,doing nothing to preserve good paying jobs,throwing money at people to buy goods made in China,tells me,the ignorand are
taken advantage off.Public education will teach political correctness and selfesteem,but simple economics are a foreign subject.Young adults,growing up with videogames and MTV,claiming superior
knowledge of politics,rallying behind the
underachiever,supporting canditates that
have nothing to offer but empty words and
slogans,is this what this country needs?I
hope that the one canditate I support, makes a strong statement on this subject.
Vote MITT ROMNEY.

Posted by: Viktor Popp | January 27, 2008 11:34 AM | Report abuse

The comments to this entry are closed.

 
 
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