Obama predicts quick approval of econ rescue plan
President-elect Barack Obama expects the new Democratic-controlled Congress that convenes Tuesday to quickly approve hundreds of billions of dollars in new spending to tackle the ‘very sick’ US economy, AP reported.
On his first full day in Washington after winding up his holiday vacation, Obama plunged into crisis talks Monday with congressional leaders.
Even two weeks before his Jan. 20 inauguration, Obama is already facing a dose of reality as congressional leaders put him on notice that his multibillion-dollar economic plan would not be ready before he takes office, and his commerce secretary choice, Bill Richardson, withdrew under an ethics cloud.
Obama has insisted that bold and quick action is necessary if the United States is to rebound from the greatest economic crisis since the Great Depression of the 1930s. He has said repeatedly he wants a plan that will create 3 million new jobs.
‘The economy is very sick,’ Obama said before meeting with Senate Democratic Leader Harry Reid. ‘The situation is getting worse. ... We have to act and act now to break the momentum of this recession.’
‘I expect to be able to sign a bill shortly after taking office,’ he said. Pressed on the timing, he said, ‘By the end of January or the first of February.’
Obama met earlier in the day with House Speaker Nancy Pelosi, a Democrat, as he set a tone of urgency for dealing with a financial situation that he described as ‘precarious.’
‘We will hit the ground running ... to address the pain being felt by the American people,’ Pelosi promised as she welcomed Obama to her office.
For the first time in 16 years, Democrats control both houses of Congress and welcome one of their own to the White House. That foreshadows a productive session, particularly if Obama can muster Republican support for his initiatives, as he is seeking.
Obama has also decided to fill the top two US intelligence jobs with two men short on direct experience in intelligence gathering, signifying the Democrat’s intention to distance himself from such Bush administration policies as harsh interrogations, waterboarding and warrantless wiretapping.
Former Clinton White House Chief of Staff Leon Panetta, a longtime congressional veteran and administrative expert, is being tapped to head the CIA.
Retired Adm. Dennis Blair, a former chief of the US military’s Pacific Command who devised a post-Sept. 11 attacks anti-terrorism effort in southeast Asia, is Obama’s choice to be director of national intelligence, a selection expected for weeks, according to two Democrats who spoke Monday on condition of anonymity because Obama has not officially announced the choices.
Obama has said there can be only one president at a time – and he repeated that principle Monday ‘when it comes to foreign affairs.’ But when it comes to the floundering economy, he clearly feels he cannot sit by until the swearing-in.
‘The reason we are here today is because the people’s business cannot wait,’ Obama said as he arrived for his meetings in Washington.
Obama’s proposal to stimulate the American economy includes tax cuts of up to $300 billion, including $500 tax cuts for most workers and $1,000 for couples, as well as more than $100 billion for businesses, an Obama transition official said. The total value of the tax cuts would be significantly higher than had been signaled earlier.
New federal spending, also aimed at boosting the moribund economy, could push the overall package to the range of $800 billion or so.
Another provision brought to the negotiations by the Obama team would award a one-year tax credit costing $40-50 billion to companies that hire new workers, and would provide other incentives for business investment in new equipment.
‘We’ve got an extraordinary economic challenge ahead of us,’ Obama said. ‘We’re expecting a sobering job report at the end of the week.’
Obama had meetings with a broad array of House and Senate Democratic leaders and with a bipartisan group of key lawmakers. He had hoped to have Congress enact the recovery plan in time for him to sign when he takes office Jan. 20. But even his spokesman, Robert Gibbs, conceded that was ‘very, very unlikely.’
House Majority Leader Steny Hoyer, a Democrat, said Sunday he wants the House to approve the plan by the end of the month, sending it to the Senate in time for action before Congress leaves on its mid-February break.
After meeting with Obama, House Minority Leader John Boehner, a Republican, said he was concerned about the plan’s cost.
‘This is not a package that’s ever going to be paid for by the current generation,’ Boehner said. ‘It’s being paid for by our kids and grandkids.’
Republican lawmakers want more details, Boehner said, but he replied ‘yes’ when asked if he expected a stimulus plan to be enacted within six weeks.
Obama arrived Sunday night in Washington – a place he largely has shunned since winning election – just hours after New Mexico Gov. Bill Richardson was removed from his cabinet post after news he faced a congressional inquiry.
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