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Wednesday, June 11, 2008
DAILY FISCAL POLICY REPORT -- June 11, 2008
Unemployment -- What is the Fastest Vehicle?: House and Senate leaders haven't decided yet how best to pass a 13-week extension of unemployment insurance benefits for the nation's 8.55 million jobless workers. The House is inclining toward a stand-alone extension bill, believing that would quickly secure a veto-proof majority. Senate leaders and some Republicans such as Sen. Olympia Snowe (R-ME) say the "emergency" war supplemental "is the fastest vehicle" available. The House is expected to vote on a stand-alone version of the bill this afternoon or tomorrow. GOP Deserting Bush on UI.
Taxes -- Extenders on Hold as Cloture Vote Fails: By a vote of 50-44 yesterday, the Senate failed to invoke cloture -- cut off debate and move to a final vote -- on a $120 billion package of popular tax breaks known as "extenders" and a one-year AMT "patch." While the patch is not offset, the rest of the bill would be largely paid for by curtailing two tax breaks, consistent with a similar package that cleared the House May 21 (see Report). Senate Extenders Bill Summary.
Fiscal/Monetary Policy -- NY Fed Chair Speaks: Federal Reserve Bank of New York President Timothy Geithner shed new light Monday on the Fed's decision to help facilitate the sale of Bear Stearns to JP Morgan Chase. "We did this with great reluctance, and only because it was the only feasible option available to avert default... Although we assumed some risk in this transaction, that risk is modest in comparison to the risk of very substantial damage that would have accompanied default." Some believe the vast perponderance of the risk is being borne by U.S. taxpayers. NYT Commentary.
Posted by Dana Chasin
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