About us Login Get email updates
Research
Print

Media quote GOP senators attacking stimulus as not "targeted" or "temporary" without noting support for bill that was neither

February 09, 2009 4:41 pm ET

SUMMARY: Several news outlets have uncritically quoted Republican senators criticizing the economic recovery plan supported by Senate Democrats as not being "timely, targeted and temporary" but did not point out that those Republicans voted in support of a proposed amendment by Sen. Jim DeMint (R-SC) that would replace the stimulus bill entirely with permanent tax cuts, some of which DeMint referred to as "broad based."

22 Comments

Several news outlets have uncritically quoted Republican senators criticizing the economic recovery plan supported by Senate Democrats as not being "timely, targeted and temporary" but did not point out that those Republicans voted in support of a proposed amendment by Sen. Jim DeMint (R-SC) that would replace the recovery bill entirely with permanent tax cuts, some of which DeMint referred to as "broad based."

In February 7 articles, both The New York Times and Congressional Quarterly Weekly (accessed via Nexis) uncritically quoted Senate Republican leader Mitch McConnell (KY) saying of the economic recovery package: "A bill that was meant to be timely, targeted and temporary has instead become a Trojan horse for pet projects and expanded government." Similarly, on February 5, The Associated Press reported that Sen. John Thune (R-SD) "says a package that was supposed to be timely, targeted and temporary will put too much of a burden on future generations as it's based on borrowed money." However, none of these articles noted that the Republican senators quoted actually voted in support of DeMint's proposal, which is neither "temporary" nor "targeted."

DeMint's proposal was not "temporary." It included provisions making Bush's 2001 and 2003 tax cuts permanent; indeed, in a January 29 speech at the Heritage Foundation, DeMint said of his plan: "The idea is simple: first, make the temporary tax cuts of 2001 and 2003 -- now set to expire in 2011 -- permanent." From DeMint's summary of his proposal:

1) Defuse the 2011 tax bomb: Stop tax increases set to hit the economy in 2011.

o Permanently repeal the alternative minimum tax once and for all;

o Permanently keep the capital gains and dividends taxes at 15 percent;

o Permanently kill the Death Tax for estates under $5 million, and cut the tax rate to 15 percent for those above;

o Permanently extend the $1,000-per-child tax credit;

o Permanently repeal the marriage tax penalty;

o Permanently simplify itemized deductions to include only home mortgage interest and charitable contributions.

Other permanent tax cuts included in DeMint's amendment are, by DeMint's own admission, not "targeted." According to DeMint, these tax cuts are formulated to both last over the "long term" and be applied "broad[ly]." These proposals include:

2) Long term, broad based tax cuts for American families and businesses.

o Lower top marginal income rates - the one paid by most of the small businesses that create new jobs - from 35 percent to 25 percent.

o Simplify the tax code to include only two other brackets, 15 and 10 percent.

o Lower corporate tax rate as well, from 35 percent to 25 percent. The U.S. corporate tax rate is second highest among all industrialized nations, driving investment and jobs overseas. Lowering this key rate will unlock trillions of dollars to be invested in America instead of abroad.

Indeed, during his January 29 speech, DeMint specifically criticized "targeted" and "temporary" tax cuts in contrasting the Democratic proposal with his own. DeMint said of the Democratic recovery bill:

The tax side of the bill is little better. Think of it this way: if nearly every Democrat in Congress supports a tax cut, it's not really a tax cut. And, indeed, the text of the Democrats' plan reveals $212 billion of smoke-and-mirrors gimmicks: temporary cuts and rebates exactly like those that failed to stimulate the economy last year, and eco-shakedown tax credits.

DeMint also criticized "targeted tax benefits" for corporations in the Democratic bill, saying that they "only encourage" those companies to "spend money on the lobbyists who secure such goodies":

And rather than giving large companies loopholes and targeted tax benefits -- which only encourage them to spend money on the lobbyists who secure such goodies -- Congress should get out of the business of picking winners and losers in the market and simply cut everyone's taxes and let the best company win. My plan will make businesses compete for consumers, not Congressmen.

From The New York Times' February 7 article, "Divisions Over the Competing Stimulus Bills" by David M. Herszenhorn:

In debate on the Senate floor, many Republicans, including the party's defeated presidential nominee, Senator John McCain of Arizona, offered amendments to reduce spending and broaden the tax cuts in the plan. The Democrats easily swatted those down.

Critics of the stimulus plan say Democrats have packed it not with the most effective short-term proposals to lift the economy, but with favored, liberal spending programs that will drastically increase the national debt and cause long-term fiscal harm.

"A bill that was meant to be timely, targeted and temporary has instead become a Trojan horse for pet projects and expanded government," the Republican leader, Senator Mitch McConnell, said in a floor speech on Friday.

From Congressional Quarterly Weekly's February 7 article, "Senate Scales Back Its Stimulus" by Joseph J. Schatz and CQ Staff (accessed via Nexis):

House and Senate leaders hope to begin negotiations on the stimulus measure this week with a goal of sending a final product to Obama before the Presidents Day weekend.

But no House Republican voted for the bill when it passed that chamber, and GOP support seemed almost as slim in the Senate. Republicans, including 2008 GOP presidential nominee John McCain of Arizona and Minority Leader Mitch McConnell of Kentucky, protested that even the slimmer compromise was too costly, and said public opinion was turning against the proposal.

"The more the American people learn about this bill, the less they like it," McConnell said. "Americans realize that a bill which was meant to be timely, targeted and temporary has instead become a Trojan horse for pet projects and expanded government."

From the AP's February 5 article, "Thune Calls Stimulus Bill Unfocused, Unending":

Sen. John Thune says President Obama's nearly $1 trillion economic stimulus plan is laden with extraneous spending on pet projects that won't stimulate the economy.

He says he'll vote against the bill unless it's significantly modified.

The South Dakota Republican says a package that was supposed to be timely, targeted and temporary will put too much of a burden on future generations as it's based on borrowed money.

Thune is pushing for more tax breaks for middle-class families and small businesses and incentives for small business to create jobs.

Expand All Expand 1st Level Collapse All Add Comment
    • Author by nerzog (February 09, 2009 5:06 pm ET)
         

      I'd like somebody to explain to me how tax cuts would be "instant stimulus" while government spending would not.  Is it the knowledge that they won't have to pay as much in taxes what stimulates people or companies?  

      Did Starbucks lay off thousands of people because they don't have enough money to pay their taxes?  

      Is Circuit City closing so it won't have to pay taxes?

      Report Abuse
      • Author by snoopy (February 09, 2009 6:56 pm ET)
           

        All it will do is stimulate them to use that extra capital to outsource more jobs to china and india. Here, I'll put it in caveman so our more challenged members can understand:

        Ugh. Only 300 million in America. Ugh.

        Ugh. Over 3 billion in China and India. Ugh.

        Ugh. Lots more people to sell to over there. Ugh.

        Report Abuse
    • Author by nerzog (February 09, 2009 5:08 pm ET)
         

      "Permanently kill the Death Tax for estates under $5 million, and cut the tax rate to 15 percent for those above;"

      Now there's a stimulus for ya.  A lot of rich people are refusing to die because they don't want to pay that darned "Death Tax".

      Report Abuse
    • Author by nerzog (February 09, 2009 5:15 pm ET)
         

      And on the corporate tax rate.... do American companies really move overseas to avoid taxes, or because they can hire workers for a dollar a day?

      Report Abuse
      • Author by skeptical (February 09, 2009 5:36 pm ET)
           

        Typically, wages and benefits are the largest single expense for any company, so they are definately looking to hire cheap labor.  It's the only reason companies move overseas.

        Report Abuse
        • Author by snoopy (February 09, 2009 6:58 pm ET)
             

          Not quite. Shipping and transformation costs and time to delivery are pretty important too. They want plants over there because to send product from here means sitting on a boat for 30 days followed by another 14 days in customs.

          Report Abuse
    • Author by worrierking (February 09, 2009 5:21 pm ET)
         

      Show me an official US Federal Tax called "The Death Tax" and I'll support doing away with it altogether.

      Report Abuse
      • Author by nerzog (February 09, 2009 5:49 pm ET)
           

        That's an interesting story, which I heard on NPR years ago.  The name "Death Tax" and the campaign to end it started with one wealthy family.  They hired a Right Wing think tank to mount a political campaign against it.

        In essence, it's a fabricated movement.

        Report Abuse
    • Author by chucko (February 09, 2009 6:00 pm ET)
         

      Look, the GOP are hypocrites for voting for the DeMint amendment while criticizing the dems' stimulus plan for not totally being "temorary or targeted," but MMFA leaves out, conveniently where the GOP got that claim about the recovery plan from: Speaker Pelosi.  She should not have referred to such a big spending bill in this manner and given meat to the GOP, who will use anything to demonize a democratic-written bill.

      Report Abuse
      • Author by loonz (February 09, 2009 6:06 pm ET)
           

        The republicans didn't need her to do anything.  One way or another they were going to impugn the bill.

        Report Abuse
      • Author by progressiveright (February 09, 2009 6:44 pm ET)
           

        The GOP and most conservitives only care about big business and the upper 2 percent of the individual wealth because they want an eliteist contry and they call anyone who is truely for the people and elitist to discredit them.  Get with the picture and only vote progressive or for those who promise and keep the promise to work for the average person not the wealthy.

        Report Abuse
    • Author by snoopy (February 09, 2009 7:49 pm ET)
         

      Woohoo! The stimulus just passed the senate with 61 votes! Take that, you lying dirtbag obstructionists! I hope Obama puts y'all in the basement next to Milt and his red stapler, that's where you belong!

      Report Abuse
      • Author by snoopy (February 09, 2009 8:06 pm ET)
           

        Oops, sorry. Meant to say end debate. It's gonna get an up/down vote now. Still, take that!

        Report Abuse
        • Author by oscar the grouch (February 09, 2009 8:10 pm ET)
             

          Does that mean my $2600 check will be in the mail tomorrow and my grandchildren's $3500 bill will be the mail by the end of the decade?

          Report Abuse
          • Author by snoopy (February 09, 2009 8:25 pm ET)
               

            Only after you submit to the $4500 rectal exam, cross your eyes and dot your T's.

            Report Abuse
            • Author by oscar the grouch (February 09, 2009 8:34 pm ET)
                 

              Did that 3 years ago and the Dr cleared me for 10, my eyes start crossing about 10:00 pm each evening so I can't tell if I have all the Ts dotted or not (I could try the umlat thing from a couple of days ago, would that count?)

              Report Abuse
              • Author by snoopy (February 09, 2009 8:50 pm ET)
                   

                Try grabbing your T's and squeezing. If it hurts, you get a check! ;)

                Report Abuse
                • Author by oscar the grouch (February 09, 2009 8:58 pm ET)
                     

                  Better wait until I get back from "stimulating" the local economy, wife's birthday today (and with Valentine's Day on Saturday, the local economy is probably looking at a double.)

                  Report Abuse

my.MediaMatters.org

Login  Sign Up

Push Back

Phone calls, emails and letters from the public do make a difference. Remember that to be effective you must be polite, and professional. Express your specific concerns regarding that particular news report or commentary, and indicate what you would like the media outlet to do differently in the future.