Nelson urges 'gang' to cut stimulus plan

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Nelson urges 'gang' to cut stimulus plan

by George Lauby (North Platte Bulletin) - 2/1/2009

Billions of dollars in the massive economic stimulus bill arguably won’t spark job growth, Sen. Ben Nelson said Friday.

The House passed the $819 billion plan last week. Nelson hopes to revise the package in the Senate. He is forging a coalition of key senators that can overcome partisan stalemates.

Nelson appeared Sunday on CNN to discuss the package, which many observers say is the biggest government-spending plan in history.

So far the stimulus bill contains $523 billion in spending and $275 billion in tax cuts, plus a few billion for health insurance for the unemployed and funds for cash-strapped states pay a share of soaring Medicare costs.

There is considerable pork in the plan, Nelson said, noting $75 million for smoking cessation, $345 million for Agriculture Department computers and $100 million for Energy Department computer research.

Nelson, who three years ago gathered key Republican and Democrat senators into a so-called "Gang of 14" to avert a shutdown of the Senate over judicial nominations, is trying again to forge a bipartisan coalition.

Several senators want more funds for infrastructure construction. So far, the bill has $50-80 billion for infrastructure.

E-Verify

Also, Nelson teamed with Republican Sen. Jeff Sessions of Alabama to urge that E-Verify, the government’s citizenship verification program, become mandatory for businesses benefiting from the stimulus package. E-Verify is currently voluntary.

And, Nelson told the Washington Post newspaper he would pluck out money for research at the National Institutes of Health and about $13 billion for Pell grants for college students.

Those measures are worthy but do not belong in legislation designed to stimulate the economy, he said.

Corporate earnings back to US

Nelson and other senators, including Republicans, would add a tax break – granting multinational companies a one-time break on repatriated earnings.

“It's a good idea to help create incentives to get money to come back to the United States, to make the stimulus bill more stimulating, Nelson told the National Journal.

Currently, companies pay a 35 percent tax rate if they bring foreign subsidiary earnings back to the United States. Nelson would cut the rate to 5.25 percent, for one time.

Worsening times

Nelson said the recession affects Nebraska.

“Major Nebraska companies like First National and Union Pacific and many smaller businesses are facing hardship, as are Nebraska families and workers,” Nelson said. “And we hear that more serious job loss is likely ahead. We need to focus this on getting people back to work quickly.”

Neb. Republicans say ‘no’

In the House, all Republicans voted against the measure, including Adrian Smith, Jeff Fortenberry and Lee Terry of Nebraska.

Fortenberry said the plan is just too much.

“Important ideas were included, such as alternative energy for a sustainable energy future, a modern electric grid and health information technology, which…I would support on their own merit,” he said. “Yet a substantial portion of assistance goes to subsidizing states, which delays tough choices at a local level. Some states, like Nebraska, have thus far responsibly managed their budgets.”

Nebraska, which is required by its constitution to balance the state budget, currently has a budget surplus, while other states have record deficits.