WASHINGTON — The Senate cleared the way on Monday for final Congressional approval of a Democratic plan to spur job creation as Democrats grew impatient with delays in enacting what they hope is the first in a series of economic measures. þþBy a bipartisan vote of 61 to 30, the Senate eliminated the final procedural obstacle to approval later this week of a bill that would exempt employers from payroll taxes through the end of the year on newly hired employees who have been out of work for at least 60 days. þþSix Republicans joined 53 Democrats and two independents in cutting off debate; 29 Republicans and one Democrat, Senator Ben Nelson of Nebraska, opposed the move. The jobs measure is one of the few major pieces of legislation in months to draw significant support from both parties in the Senate. þþFrustrated over the pace of consideration of the measure, which has already passed the Senate once, Democrats sought to move up a final vote on the bill that contains $15 billion in tax breaks and subsidies for capital improvement bonds along with an extra $20 billion for highway and transit construction. þþ“Let’s get this done,” said Senator Harry Reid of Nevada, the majority leader. “This bill should go to the president tomorrow so people can start being hired the day after tomorrow.” þþBut Senator Mitch McConnell of Kentucky, the Republican leader, objected to an expedited vote and Democrats instead accepted Mr. McConnell’s proposal to finish the measure Wednesday morning and to consider a long-delayed renewal of Federal Aviation Administration programs in the interim. þþDemocrats had wanted the jobs-related measure on President Obama’s desk weeks ago and they significantly scaled back its scope in an effort to speed its approval. But the measure was still snarled by Democratic reservations in the House, where lawmakers considered it too narrow and insisted on changes, as well as by procedural delays in the Senate despite some Republican backing. þþDemocratic supporters of the bill said the measure would create hundreds of thousands of new jobs while providing tax benefits to small businesses that make investments in their operations. þþ“We need to help people get jobs,” Senator Max Baucus, the Montana Democrat who is chairman of the Finance Committee, said. “We need to do more to help businesses to hire more workers.” þþUnder the proposal, businesses that hired the unemployed would also get a $1,000 tax credit if the workers are kept on the payroll at least a year. Besides adding money for public works construction, the measure would also extend the federal highway program through the end of the year, sparing it from interruptions that led to temporary unpaid furloughs for Department of Transportation workers earlier this month. þþThe Senate last week approved a separate $150 billion package of business tax breaks and safety net programs that Democrats hope to make the next stage in their push to encourage hiring while providing some relief to those who are struggling to find employment. But that measure still needs review in the House and appears to be weeks away from passage. þþDemocrats intend to follow that bill with legislation focusing on more aid to small businesses. On Monday, leaders of the House Ways and Means Committee proposed another package of tax breaks for small businesses and incentives for state and local government bonds to finance public works projects. þþUnder the bill, individuals who invest in eligible small businesses could exclude all capital gains for stock acquired for the remainder of the year and held for at least five years. That is up from a 75 percent tax exclusion in the original stimulus law. The bill would also increase through 2011 deductions for some costs of starting a business. The tax-writing panel could approve the proposal as early as Wednesday and send it to the House floor soon after. þþDemocrats had hoped to make the economy and job creation their main priority in 2010, but they continue to get sidetracked by the health care debate, a clash they hope to conclude in the coming days. þþþJackie Calmes contributed reporting.þ
Source: NY Times
