The Hotline

November 20, 2001

SECTION: NATIONAL BRIEFING

CONGRESS: STIMULUS NOT DEAD YET

Congress "is looking favorably on a proposal to suspend Social Security payroll taxes for one month." Top GOPers and Dems on the House Ways and Means Cmte "say they like the plan, which would pump" about $40B into the economy almost immediately. Ways and Means Chair Bill Thomas (R-CA): "We're looking for mechanisms that will actually affect [the economy] fairly quickly." Rep. Charles Rangel (D-NY): "I think it's an exciting way to stimulate the economy." The idea "was promoted by" Sens. Pete Domenici (R-NM) and Kit Bond (R-MO) before Congress adjourned 11/16. Domenici: "There are a lot of people beginning to ask about it and starting to support it." A Senate GOP source said some "expect opposition to the plan from big labor, although some top" Senate Dems have "expressed interest." One "hitch" is that money "would have to be transferred from general revenue to the Social Security trust fund to cover the cost" (Boyer, Washington Times, 11/20). Sens. John Breaux (D-LA) and Olympia Snowe (R-ME) spoke with Treas. Sec. Paul O'Neill 11/19 in an "attempt to build on bipartisan momentum created by a compromise" stimulus plan outlined last week. Breaux: "We had a very positive conversation that should set the stage for substantive and bipartisan progress when the Senate returns from Thanksgiving." The "Centrist proposal" draws from the "common elements" in both the GOP and Dem plans (Centrist Coalition release, 11/19).