US PRESIDENT Barack Obama has insisted that “very modest differences” over a huge economic recovery package should not derail it as Senate Republicans said they cannot back the plan without big changes.
Speaking in the White House yesterday, the president sought to play down disagreements between the parties over the $820 billion package of public spending and tax cuts.
“With very few exceptions, I heard from Republicans and Democrats the need for action, and swift action,” Mr Obama said. “We hope to be able to get the Bill through in the next couple of weeks and put America back to work.”
Republican Senate leader Mitch McConnell claimed yesterday, however, that Republican doubts about the plan were shared by many Democrats. “We need to make sure that we’re not borrowing money to spend on projects that aren’t going to stimulate the economy,” he said.
The House of Representatives approved the stimulus package last week but not a single Republican voted for the Bill and former Republican presidential candidate John McCain said the parties were “a long way away” from agreement in the Senate.
“There’s too much spending, too much unnecessary spending, not the right kind of tax cuts and no endgame,” Mr McCain said. “After the economy recovers, we should be on a path to a balanced budget. We’re laying the biggest deficit on future generations of Americans in history.”
Mr Obama said he “absolutely” stood by his choice for health secretary, former Senate majority leader Tom Daschle, who has admitted failing to pay more than $120,000 in taxes. Mr Daschle apologised yesterday to the Senate committee that will consider his confirmation, describing himself as “deeply embarrassed”.
Mr Daschle recently paid $128,203 in back taxes and $11,964 in interest after he amended his tax returns for 2005-2007.
“I apologise for the errors and profoundly regret that you have had to devote time to them,” he wrote in a letter to the Senate finance committee.
The committee’s Democratic chairman Max Baucus, who has a long history of political disputes with Mr Daschle, said yesterday that he would support his confirmation as health secretary.
“I have applauded Senator Daschle’s nomination to the post of HHS Secretary, and my faith in his dedication and qualifications has only been bolstered in recent weeks by our numerous conversations about the pressing need for comprehensive health care reform,” Mr Baucus said.
The Senate last week confirmed Timothy Geithner as treasury secretary despite a similar disclosure over unpaid taxes. Republican National Committee chairman Michael Steele said yesterday that senators should be tougher with Mr Daschle. “We’ve already let one cat out of the bag with Geithner,” Mr Steele told USA Today. “So what’s the standard down to, to be a cabinet secretary? You don’t have to pay your taxes? Come on.”
Mr Steele, who was elected last week as the first African-American to chair his party, praised House Republicans for opposing the stimulus Bill and said senators should “kill” it unless it was changed.
Mr Obama wrote to millions of supporters asking them to host or attend house meetings next weekend to support his economic recovery plan.
“It’s not enough for this Bill to simply pass Congress. Americans need to know how it will affect their lives – they need to know that . . . this administration is investing in economic growth and stability,” he wrote. “You can help restore confidence in our economy by making sure your friends, family, and neighbours understand how the recovery plan will impact your community.”