U.S. House to Vote Again on Amended Bailout Plan
Saturday, October 04, 2008 11:58 AM
(Source: International Herald Tribune)trackingBy David M. Herszenhorn and Robert Pear

Democrats in the lower house of the U.S. Congress planned to bring the $700 billion economic bailout package to the floor for a vote Friday, signaling confidence that they had enough support to pass the bill.

The move came after Republican leaders struggled Thursday to persuade some of their members to reverse course and support the package and after top Democrats said earlier that they would not bring the bill to the floor unless they were certain of victory.

"I'm hopeful that there will be bipartisan, majority support for this bill that is critical to stabilizing our nation's economy for all working Americans," said the majority leader, Representative Steny Hoyer, Democrat of Maryland, who said the House of Representatives would consider the bill Friday morning.

Policy makers and investors worldwide are closely watching the outcome of the vote because they believe the measure is critical to prevent a further weakening of the U.S. and global economy. Leaders of some of the largest countries in Europe planned to meet Saturday to discuss dealing with the credit crisis there.

Earlier Thursday, the White House and congressional leaders maneuvered to drum up support, and several lawmakers in each party said they were prepared to switch their votes.

But others agonized amid a continuing deluge of calls from angry constituents.

The Senate approved the bailout plan Wednesday night, 74-25, with a solid bipartisan majority after adding a thick portfolio of popular tax provisions.

The Senate action came after House members defied the leadership of both parties and rejected the plan Monday. The Senate proposal included more than $150 billion in tax breaks but included offsets to pay for only $43 billion, infuriating fiscally conservative Democrats in the House.

"We may lose people," Hoyer said. "Because frankly, the things that were added on and the way they were added on essentially appeal to Republicans."

But apparently it was not appealing enough because only a few Republicans stated publicly that they were prepared to switch their votes to yes. One of them, Representative Zach Wamp, Republican of Tennessee, said the economy was in too precarious a state not to pass the bill.

"The time has come to act." Wamp said in an interview on Fox Television. "If we do not go on the wall, it will be an ugly day in America."

There was also movement among some Democrats. Representative Emanuel Cleaver, Democrat of Missouri, announced that he would switch to yes from no.

A small group of Republicans said they were still hoping to amend the bill and to reduce the amount of money the Treasury could spend on troubled assets of ailing financial firms, to $250 billion from $700 billion. Democrats said they had no plans to allow amendments, which would require the Senate to vote again, further delaying the plan.

After the stunning rejection Monday, which sent the Dow Jones industrial average into a nosedive, the leadership of both parties said they were leaving nothing to chance.

They were hunting for votes in precincts of Texas and Louisiana decimated by Hurricane Ike, stressing $7.6 billion in disaster aid. They were scouring districts in northern New Jersey and other affluent suburbs with promises of relief from the alternative minimum tax. And they were looking to rural areas across the West, with aid for schools and for loggers.

House Democrats had reacted furiously. They support many of the tax provisions, and previously had approved them, but had insisted they be neutral on the overall budget. The Senate version added $107 billion in deficit spending.

President George W. Bush has urged Americans to tell their representatives in Congress to approve the plan. "The bill that's before the House of Representatives tomorrow is a bill that has got the best chance of providing liquidity, providing credit, providing money so small businesses and medium-sized businesses can function," Bush said.

Originally published by The New York Times Media Group.

(c) 2008 International Herald Tribune. Provided by ProQuest LLC. All rights Reserved.


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