News

January 19, 2008

Local Dems say Bush must cooperate

By Jerry Lynott jlynott@timesleader.com
Business Writer
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As President Bush proposed a stimulus package Friday to boost the nation’s economy, area federal lawmakers said it was up to him to work with them to ensure the tax rebates and incentives become realities.

The calls for cooperation came from Democrats who control Congress.

“It is nice to see the president finally realized the economic plight of working families,” U.S. Rep. Chris Carney, D-Dimock Township, said in a prepared statement. “I look forward to working with the president and both sides of the aisle in Congress to come up with real economic reform, especially permanent tax cuts for the middle-class families.”

Northeastern Pennsylvania’s other first-term federal lawmaker, U.S. Sen. Bob Casey, D-Scranton, issued a press release putting the onus on the president.

“I’m glad President Bush is listening to the calls of leaders in Congress that the economy is in trouble and that Pennsylvanians are suffering,” Casey said. “I hope that President Bush follows through on his rhetoric and works with the Democratic leaders to swiftly pass a stimulus package that will deliver real help to Pennsylvanians and the economy.”

The statement from U.S. Rep. Paul Kanjorski, D-Nanticoke, focused on the task that faces Congress and the president.

“To successfully stimulate the economy, any proposal should be timely, targeted and temporary,” Kanjorski said. “From my position on the Financial Services Committee, I will work on the part of the stimulus package that will soften the effects of the collapse of the housing bubble.”

The recent announcements of the layoffs of 40 people at Sallie Mae and the loss of 275 jobs with the March closing of the J.C. Penney call center demonstrate that “we must act quickly,” he added.

The plan drew a quick response from Republican challengers for Carney’s 10th Congressional District seat, Dan Meuser and Chris Hackett.

“I think a rebate is fine, but what’s really needed is a comprehensive approach that lowers taxes and curtails Washington spending,” Hackett said. “Long-term growth is not created by these quick fixes. It’s created by limiting the reach of government into productive economic activity.”

He and Meuser pointed out they differ from Carney in that they support making the 2001 and 2003 tax cuts permanent. Unlike Carney, they said, they favor the elimination of the inheritance tax, commonly referred to as the death tax.

“I’m all for it,” Meuser said of a proposed middle-class tax cut. But in return he called for more accountability from Congress. To pay for the tax cut, there has to be a corresponding reduction in federal spending, he said.

“Those in Congress and the Democrats need to understand the principles of economic growth. Tax increases are a contradiction to economic recovery,” Meuser said.

Davis Haire and Paul Swiderski also are seeking the Republican nomination for the seat held by Carney.

The risk of a recession is driving Washington’s efforts, but Wilkes University business professor Anthony Liuzzo sees more of a slowdown.

A recession is defined as a decline in the gross domestic product for two or more consecutive quarters. “I’ve been saying I don’t see that on the horizon,” Liuzzo said.

The president’s motives also are political, still he’s taking a proactive approach with the stimulus proposal, Liuzzo said. “It’ll help. The question is whether it will stop the continued slowdown.”

Jerry Lynott, a Times Leader business writer, can be contacted at 570 829-7237.

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