Bipartisan jobs bill advances in Senate; final vote today

The 62-30 tally to advance the measure to a final vote on Wednesday gives both President Barack Obama and congressional Democrats a much-needed victory even though the measure in question is likely to have only a modest boost on hiring.

Brown and four other Republicans broke with party leaders in the Senate to advance the measure. Most other Republicans voted in favor of the filibuster, a procedural maneuver to block a final vote on a measure because of strong-arm tactics by Democratic Majority Leader Harry Reid of Nevada. The bill is likely to enjoy far broader Republican support on Wednesday when it's put to an up-or-down vote.

The bill featured four provisions that enjoyed sweeping bipartisan support, including a measure exempting businesses hiring the unemployed from Social Security payroll taxes through December and giving them another US$1,000 credit if new workers stay on the job a full year.

Though employers seldom make hiring decisions based on tax breaks, economist Mark Zandi says the measure could potentially create 250,000 new private-sector jobs. That's less than 4 percent of the 8.4 million jobs lost in the recession.

Joining Brown in voting to break the filibuster were two moderate northeastern Republicans, Sens. Olympia Snowe and Susan Collins of Maine, and two retiring Republican senators, Kit Bond of Missouri and George Voinovich of Ohio. Democrat Ben Nelson of Nebraska voted “nay” and Frank Lautenberg of New Jersey was absent because of illness.

Reid's bill is a far smaller measure than Obama's US$862 billion economic stimulus bill enacted a year ago. It's also significantly smaller than a rival bipartisan bill unveiled earlier this month by two senior senators.

The legislation also would renew highway programs through December and deposit US$20 billion in the highway trust fund.

For his part, Reid was clearly pleased. “I hope this is the beginning of a new day here in the Senate,” he said. “Whether this new day was created by the new senator from Massachusetts or some other reason I'm very, very happy.”

Voinovich said he voted for the bill because the highway spending will create jobs and help states pay for important projects.

After the vote, Obama thanked the Senate. “The American people want to see Washington put aside partisan differences and make progress on jobs, and today the Senate took one important step forward in doing that,” Obama said, adding that more needs to be done.

Among Obama's proposals to boost the economy are a US$250 payment to Social Security recipients, US$25 billion to help cash-strapped states and US$30 billion in Wall Street bailout money redirected to help community banks lend to small businesses.

Republicans and some Democrats were unhappy that Reid abruptly dumped about US$70 billion worth of tax breaks for businesses and individuals, help for the unemployed and additional health insurance payments to doctors who treat the elderly from a compromise measure unveiled earlier this month by Sens. Max Baucus, a Montana Democrat, and Charles Grassley, an Iowa Republican, the chairman and ranking Republican on the Finance Committee.

In addition to the hiring tax incentives and highway funding, the bill would extend a tax break for small businesses buying new equipment and modestly expand an initiative that helps state and local governments finance infrastructure projects.

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