Daily Tax Update - November 17, 2008

AUTO BAILOUT BILL MEETING RESISTANCE ON HILL: Congress returns this week for orientation sessions for new Members of Congress as well as leadership and other committee organizational matters. 

• Today, Senate Majority Leader Harry Reid called for bipartisan support of a broad economic stimulus bill. Reid said that he plans to offer a comprehensive economic stimulus bill that would include funding for a public works program, food stamps, unemployment insurance, Medicaid reimbursements, and a $25 billion loan for the auto industry. The Majority Leader said that if the Senate is unable to pass the broad economic stimulus package, he would try to move a smaller stimulus bill that includes the extension of unemployment insurance and auto aid.
• Some Republican lawmakers have expressed opposition to the auto bailout plan. Sen. John Cornyn (R-TX) said, “With the very first vote after the election, Democratic leaders in Congress want to pass a $25 billion handout to Detroit with no promises of reform, accountability or transparency by the automakers and their union base.” The Senate is expected to try to hold a cloture vote on the bill in the next couple of days. While the fate of the auto bailout provision appears murky, Congress is likely to pass an extension of unemployment benefits during this week’s lame-duck session. 
• Today, the White House offered conditional support for an aid package to the auto industry. The White House press secretary said that the Administration supports helping the auto industry, as long as the money doesn’t come from the $700 billion bailout bill. The press secretary said, “The auto industry is an important part of our manufacturing base, and we want the industry to succeed and compete in the global economy.” The press secretary said that the Administration “does not want US automakers to fail.” The press secretary added, “We believe this assistance should come from the program created by Congress that was specifically designed to assist the automakers—from the $25 billion Department of Energy loan program.”
• The House is scheduled to return Wednesday. A spokesman for House Speaker Nancy Pelosi said yesterday, “I would certainly hope that Republicans join Democrats in recognizing the severe challenges facing the auto industry and not let any of these companies fail, which would jeopardize millions of jobs here at home and have a devastating impact on our economy.”

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