House GOP objects to spending in $150 billion stimulus package

[Omaha Steve]

http://www.cnn.com/2008/POLITICS/10/13/congress.stimulus/index.html?eref=rss_topstories

WASHINGTON (CNN) -- House Republicans on Monday objected to new spending measures that congressional Democrats are considering as they draft a $150 billion economic stimulus package.


House Speaker Nancy Pelosi met with Nobel prize winner Joseph Stiglitz and other economic experts Monday.

In a letter to House Speaker Nancy Pelosi, Ohio Rep. John Boehner, the top Republican in the House, called the proposed spending "an irresponsible, business-as-usual approach that has earned this Congress the lowest approval ratings ever recorded."

A Democratic leadership aide said the stimulus package Democrats were drafting would include "a heavy emphasis on help to state and local governments."

But in their letter to Pelosi, Boehner wrote, "nothing currently being discussed by the majority as 'stimulus' will stabilize the economy long-term."

"Nothing being discussed will ease the uncompetitive nature of our nation's tax rates. Nothing being discussed will bring a single dollar of private capital into our markets, which would help stabilize and restore American families' savings and retirement accounts. And nothing being discussed will help small businesses compete and thrive," Boehner wrote.

Instead, House Republicans proposed a number of measures that, they say, will "turn the corner towards real economic growth," including:

# Removing legal barriers to speed up new offshore oil drilling. A law banning offshore drilling expired October 1, but Republican lawmakers say lawsuits could block new offshore rigs and want judges to quickly rule on the cases.

# Lowering taxes on income that U.S. corporations earn from their overseas subsidiaries.

# Eliminating capital gains taxes on the sale of homes up to $500,000 for a couple.

# Suspending capital gains taxes on securities purchased during the next two years.

# Extending government deposit insurance to business transaction accounts.

# Directing the government to guarantee inter-bank loans.

FULL story at link.

If you eliminated capital gains on a house, do you loose capital loss on a home that was foreclosed on?

[ixion]

1. ya know what reall irks me?

NEITHER SIDE is handling this thing well at all. The dems are being reactionary, and the rethugs are being deceitful and ingenuous.

And, as usual, We, the People are getting the shaft.

[Warren Stupidity]

2. Fuck 'em. nt

[KharmaTrain]

3. Another Nail In The GOOP Coffin...

I know the Pelosi haters may not like to read this, but there's some interesting tactics at play here.

Pelosi initially wanted to end the current House session...not hold a lame duck session after the election, but the GOOP wanted so badly to "drill, drill, drill" and then played games with the bail-out bill that the House didn't adjourn, but went into recess instead. This means Pelosi can still call the House back into session after the election and use a big electoral advantage to pass through a bunch of backlogged legislation.

If the Democrats are able to pick up 25 or more seats and get close to 60 in the Senate, watch the tables start to change...especially as booooshie's power receedes further and further. A big loss will create a power vacuum within the GOOP and a lot of hard feelings as well...Pelosi could use this time to set the table for an Obama administration.

The elimination of capital gains on a house is a step to get the housing market moving again. While property values have dropped back to around 2002 levels, there are still many out there who have positive equity in their homes. For example, an elderly couple who no longer need a large home and want to move into a condo...this proposal helps them in paying thousands in gains (especially if they've owned the property for 20 or 30 years).

There's going to need to be some kind of tax relief for those who've seen their property values drop below the purchase price...or a re-evaluation process that takes into consideration property inflation that occured due to the sub-prime scams. Until this mess is sorted out, the markets will never be able to recover.

Cheers...

[snot]

4. WE NEED TO STOP THIS IN ITS TRACKS. Are you calling your reps yet?

[Cessna Invesco Palin]

5. Blah blah blah cut taxes blah blah.

These people have a one track mind.

[WePurrsevere]

6. The Looks like the GOP wants MORE "trickle down" economics.. umm.. yeah.. right...

we all know how well their BS economics have worked. :eyes: I want to see "trickle UP" economics for a change. I want to see help for Main Street (help with foreclosures, extended unemployment, health care, etc) and I want to see our gov encouraging corps that keep and create JOBS HERE and make money HERE.

(Edited for clarity)

[high density]

7. We've got a credit crisis and the Repukes remain focused on fucking taxes!

And the focus is capital gains taxes, which must already be near record lows. Suspending capital gains taxes on securities sounds like it would generate a tax free pump and dump scheme. Can they not realize that the speculation in the stock market doesn't actually give capital to these companies unless they're issuing more shares?