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Jan. 12 (Bloomberg) -- President-elect Barack Obama is making “significant” changes to his economic stimulus program, such as boosting energy tax incentives, after members of his own party called elements of the plan inadequate.
“I think they’re moving very effectively to respond to the issues that we raised the other day,” Senator John Kerry, a Massachusetts Democrat, said yesterday after lawmakers met with Obama economic advisers Larry Summers and Jason Furman.
Senator Maria Cantwell, a Washington Democrat, said Summers showed a willingness to double tax credits in the bill for renewable energy to more than $20 billion.
Obama’s plan for a two-year stimulus program of about $775 billion ran into turbulence in the chamber last week when lawmakers criticized elements including a job-creation tax incentive and the share dedicated to tax cuts. Some said Obama’s plan wouldn’t do enough to reduce the nation’s dependence on foreign oil while others called for more infrastructure spending.
“They’ve made some significant changes,” said Senator Charles Schumer, a New York Democrat; Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, said, “They are clearly listening to our colleagues.”
Schumer said Obama plans to produce an outline of a stimulus package rather than a detailed measure, leaving it to lawmakers to “fill in the blanks.”
‘Collaborative, Consultative’
“We’re going to have a collaborative, consultative process with Congress over the next few days,” Obama said yesterday on ABC’s “This Week” program. “If people have better ideas on certain provisions,” the president-elect said, “we welcome that.”
Schumer said there remains “a lot of opposition” among Senate Democrats to Obama’s proposal to give employers a $3,000 tax credit for hiring new workers, because lawmakers don’t believe it will spur many businesses to expand their payrolls.
“People just say, intuitively, at a time when a company’s sales are going down, why are they going to hire new workers no matter what the incentive?” said Schumer.
He said he expects Congress to complete work on the plan by Feb. 13, when lawmakers leave for a weeklong recess.
Summers declined to comment on the meeting other than to say it was a “good discussion.” It was the second time in three days Obama economic advisers huddled behind closed doors with Senate Democrats to discuss the plan.
Senate Budget Committee Chairman Kent Conrad, a North Dakota Democrat who sought more funds for energy programs, said yesterday, “There is going to be a much greater commitment of funds to projects that reduce our dependence on foreign energy.”
Cantwell said senators are discussing allowing unprofitable solar and wind energy producers to cash in tax credits they otherwise wouldn’t be able to use until they become taxpayers. Senators are also considering whether to make the credits tradable, she said.
To contact the reporter on this story: Brian Faler in Washington at bfaler@bloomberg.net .
