House Republicans Likely To Push Through Scaled-Back Stimulus Package That Includes Tax Credits For Uninsured

Republicans in the House, which has passed three economic stimulus bills in the past six months that have died in the Senate, might propose new legislation that would scale back plans to use broad tax breaks for economic relief but would extend unemployment benefits and provide tax credits to help unemployed workers purchase health insurance, the AP/Nando Times reports. The legislation would extend unemployment benefits by 13 weeks and provide one-year tax credits to cover up to 60% of the cost of health insurance for unemployed workers. Unemployed workers who lost their jobs between March 15, 2001, when most economists say the recession began, and Jan. 1, 2004, and had health coverage for the previous year would qualify for tax credits under the bill (Anderson, AP/Nando Times, 3/4). House Republicans will likely move the legislation to the floor this week. "We're going to try to move the ball forward on workers' benefits. We want to give people help with their health care costs," John Feehery, a spokesperson for House Speaker Dennis Hastert (R-Ill.), said. Senate Minority Leader Trent Lott (R-Miss.) said that he supports the legislation but predicted that Democrats in the Senate, which has only approved a 13-week extension of unemployment benefits, would oppose the tax credit provision (Boyer, Washington Times, 3/5).

Democratic Opposition
The AP/Nando Times reports that the tax credit provision, which Republicans have included in two of the three economic stimulus bills passed in the House this year and late last year, would "again spark broad Democratic opposition -- likely dooming this latest effort as well." Democrats have said that the provision would help "too few people, would not guarantee access to affordable coverage" and would serve as the "first step in replacing the employer-provided health insurance system with a GOP-favored free market approach." In addition, Democrats said that the GOP's new efforts represent a "political calculation" in an election year, rather than an "attempt to strike real compromise" on legislation to help unemployed workers (AP/Nando Times, 3/4).