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ECONOMIC SLUMP: Obama fails to sway Ensign, Heller on stimulus bill

Package too costly, poorly directed, Nevada's Republicans contend







WASHINGTON -- President Barack Obama met Tuesday with Republicans in Congress to drum up support for his economic stimulus plan but failed to entice Nevada's two Republicans to his side.

Rep. Dean Heller said he plans to vote against the $825 billion bill when it reaches the House floor today. He maintains the bill contains billions of dollars in new spending that won't create jobs but will force the government to borrow record sums and dig the nation deeper into debt.


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Likewise, Sen. John Ensign said he has problems with stimulus legislation as it is taking shape in the Senate. Its spending levels, he said, are "obscene."

He also questioned whether there are enough tax breaks in the bill and whether they are the right ones.

Obama's trip to Capitol Hill came on the eve of the major vote on the stimulus strategy that he proposed and that was adapted into legislation largely by Democrats. Although Obama has said he would like broad support, he appeared to add few if any Republican backers.

Nevada Democratic Reps. Shelley Berkley and Dina Titus have said they will vote for the stimulus legislation in hopes its combination of pump-priming spending and tax cuts for families and businesses will jump-start the economy.

Sen. Harry Reid of Nevada has been overseeing the Democratic bill-writing as Senate majority leader.

In critiquing the Obama plan, Ensign and Heller took exception to the funding that would be sent to state and local governments, a feature that Gov. Jim Gibbons has said would be the most helpful for Nevada to plug gaps in its budget as it struggles through the economic crisis.

The package would send $200 billion to state governments, which are being called the big winners in the Obama plan. Nevada's share is projected at $1.3 billion, according to analyses cited by the governor's aides.

Ensign said, "The amounts of money we are giving to the states is obscene."

"States have increased spending over the last six or seven years at a much higher rate than inflation and a much higher rate than population growth," he said. "The states, while they may need some help, the amount of help we are giving them is excessive."

"I am sure this bill is going to pass, and I am sure they are going to get their help," Ensign said. "I just think we should be thinking about the debt that we are building."

Heller said he was troubled that the federal government will be borrowing money to bail out the states.

By doing that, "we are just creating a long-term, much larger problem," Heller said.

The Nevada Republicans praised Obama for the personal appearances he made separately with House and Senate members.

They said the president offered hope that GOP members would have more input before a final bill is formed.

"We got more opportunity for feedback in that half-hour than we have had in the last two weeks with the Democrats in the House leadership," Heller said.

Ensign's aides confirmed a published report that Obama in his Senate meeting promised that he would review two corporate tax breaks the Nevadan has been promoting.

One would allow corporations to negotiate down their debt and avoid taxes for two years on the amounts that are written off.

Ensign has argued that would allow companies to clear their books of bad debt and free up money for hiring and operations.

The second would lower taxes on profits that U.S. companies earn from their overseas subsidiaries if the money is returned to the United States and reinvested.

Contact Stephens Washington Bureau Chief Steve Tetreault at stetreault@ stephensmedia.com or 202-783-1760.

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Fausto wrote on January 29, 2009 07:37 AM: Why would anyone want to tell Move-on the truth?

"Sure, I have never registered to vote before, how can you register me?"

LOL


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Ruby Waller wrote on January 29, 2009 04:43 AM: When I spoke with Ensign's Office a few days ago regarding getting this bill passed quickly for the benefit of the American People, I was told Ensign hadn't made a decision and wanted to sit down and go over the bill. This article indicates otherwise. Thank you for letting me know where he stands and that he and his office are not trustworthy to do what the citizens of Nevada demand. I'll have to champion new leaders who have our best interests at heart. I'll have lots of time to work on it while I am unemployed!!

Ruby Waller
Moveon Council Coordinator
Las Vegas, Nevada


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Megan Blake wrote on January 28, 2009 09:48 PM: Ensign is clinging to an old mentality of hooking up the corporations whose greed has brought a nation to its knees. These same corporations have off-shored all of our manufacturing, are importing sub standard goods from China at an alarming rate, are bilking, and swindling from the average American left and right ... all while buying politicans with campaign bribes in order to maintain the system that is destroying America. We need systemic reform ... we need to reign in corporate America NOT give it the keys to the coffers yet again with nary a slap on the wrist. Time to abandon the car economy, move to mass transit, push for an increase in sustainable manufacturing HERE IN AMERICA and stop pushing a service industry and fianiancial services economy. We need to go back to the basics ... we need a sustainable ... solid economy that brings the middle class back and gives the power to the people not the faceless, immoral international conglomorate corporation!!!


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Nevada Jack wrote on January 28, 2009 09:42 PM: Sen. John Ensign and Dean Heller are out of touch idiots ... they handed out billions, voted for bill after bill that gave corporations the license to do what they did. These hypocritical liars who dupe witted conservatives into voting for them should be bounced out of office. There are no true non-religious right or hook upt he corporation conservatives anymore. No real conservatives who just want to limit governmental size and over arching control. We are in a horrible economic crisis that is likely going to get worse, especially if idiots like these continue to make stupid decisions. Did these two idiots vote for the Bush free 700 billion corporate sweepstakes? Yes they did. Why doesnt the RJ mention that?


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bush's housing crisis wrote on January 28, 2009 07:00 PM: In 2002 Bush lite the fuse on the housing crisis bomb, in 2004 he decided to pi$$ on that fuse and put it out but it had already burned too close to the bomb.

I wonder what what the shrub was thinking in 2002 when started this mess, he must have had a hangover again.


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Lame wrote on January 28, 2009 05:09 PM: Suit yourself... this country is going on ahead without you two.


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daniel wrote on January 28, 2009 03:48 PM: People wake up. Not one ceo, ponzi scheme, or other higher paid employee that destroyed many lives have ever been mentioned by your democratic congress or Republican congress. If you to want to stimulua an economy you dont give it to banks or investment firms but to the people. When people have the money and jobs the banks and investment firms survive. Why would you give a millionaire money when he doesn't need it. Read between the lines. everyone that has given obama insight are multi mill/billionaires that has everything to do with their comapny. Every person who looses his job his/her paycheck goes to the ceo and top management as bonus's. F8ck the dems and rep. party's they don't give a damn about you they care about them. Demand justice for all of these misleading lies of blaming each other. I want this country to loose evrything and every millionaire to loose all. Let them move to Costa rica, Bahama's i don't care get them out. Damn people the rich are laughing at you everyday they wake up. If a car cost $4.000 to produce why is it $45,000 to buy. Milk cost over $4 a gallon yet the cow eats grass. Quit buying and let the unemployment begin, let the government pay your way. No new jobs will be gained. you need money to buy and if joe's bar & grill has no patrons, joe has no money to pay for help or food&drink. Look at this stimulus it all goes too Multi/billionaires CORPORATIONS who in turn look to see how much they will get in bonus's. Like i said every job loss is a bonus payment to the ceo look at the bail out of wall street and not your harry has said a thing about


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Floyd the Barber wrote on January 28, 2009 02:25 PM: Ensign and Heller are nothing more than a couple of haircuts.


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Judy wrote on January 28, 2009 01:38 PM: Ensign and Heller must not have received the memo... We are headed for a depression and they want to play partisian politics. The GOP is in the toilet and they want to block the recovery of the United States?
Who voted for these clowns?


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Herb wrote on January 28, 2009 01:12 PM: David Chambers, not all economists believe this porkfest will help the economy. Many say it won't help or will even make things much worse. Here is an excellent analysis on why the "bad bank" concept is dangerous and destructive.

market-ticker.denninger.net


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