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Tuesday, January 27, 2009

Obama to lobby for stimulus plan


US President Obama with US Vice President Joe Biden (Centre) and Treasury Secretary Timothy Geithner (Right)
President Obama and Timothy Geithner want to move quickly on the plan

US President Barack Obama is to hold talks with congressional Republicans to try to persuade them to accept his $825bn (£586bn) economic recovery plan.

Republican lawmakers are increasingly vocal in opposing the bill, complaining it is too expensive and unworkable.

President Obama is hoping to get their support, saying the slumping economic climate showed the need for "swift and extraordinary" action.

The president hopes his plan could clear Congress by mid-February.

'Unprecedented crisis'

The plan will be debated in the House of Representatives on Wednesday, with the Senate to follow later.

This will probably be the largest tax cut they will get to vote for over the next 24 months. They ought to grab it
House Majority Leader Steny Hoyer

Republicans lack the votes to defeat the stimulus bill on their own, but could slow its progress, especially in the Senate.

Any decision will fall to the new Treasury Secretary Timothy Geithner, who was sworn in on Monday, with the task of trying to get the US economy back in shape.

President Obama has said his administration will be held accountable for the success or failure of his stimulus plan.

He has described the US as being "in the midst of an unprecedented crisis" and has announced:

  • More than 3,000 miles of new electricity transmission lines would be laid down to improve the US power network
  • 75% of public sector buildings would be made more energy-efficient, saving taxpayers $2bn a year
  • More than 2.5m homes would be "weatherized" (made more energy efficient)
  • Funds would be made available to improve or renovate 10,000 schools

Other proposals include tax credits for firms that create jobs, tax cuts for 95% of American workers and extended unemployment benefits.

The president has pledged the plan "will save or create three to four million jobs over the next few years".

House Majority Leader Steny Hoyer last week stressed that the package included $275bn (£195bn) in tax cuts and warned Republicans: "This will probably be the largest tax cut they will get to vote for over the next 24 months. They ought to grab it."



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