Changes

==Tax rebates==

==Tax rebates==

The 2009 bill includes tax rebates that resemble in part the $152 billion stimulus law proposed by President [[George W. Bush]] and passed by Congress in Feb. 2008. However those 2008 rebates were mostly (85%) saved and used to pay down debts rather then make new purchases, so they may have failed to stimulate the economy in 2008.<ref>see [http://www.reuters.com/article/newsOne/idUSN0631744820080208 Reuters, Feb. 8, 2008]</ref>   

The 2009 bill includes tax rebates that resemble in part the $152 billion stimulus law proposed by President [[George W. Bush]] and passed by Congress in Feb. 2008. However those 2008 rebates were mostly (85%) saved and used to pay down debts rather than make new purchases, so they may have failed to stimulate the economy in 2008.<ref>see [http://www.reuters.com/article/newsOne/idUSN0631744820080208 Reuters, Feb. 8, 2008]</ref>   

Some studies show that both the 2001 and 2008 tax rebates were both surprisingly effective.<ref>see [http://faculty.chicagobooth.edu/christian.broda/website/research/unrestricted/Stimulus%20Payments%20and%20Spending.pdf The Impact of the 2008 Tax Rebates on Consumer Spending: Preliminary Evidence]</ref><ref>see [http://pennyhill.com/index.php?lastcat=19&catname=Economic+Policy&viewdoc=RS22790 Tax Cuts for Short-Run Economic Stimulus: Recent Experiences]</ref>

Some studies show that both the 2001 and 2008 tax rebates were both surprisingly effective.<ref>see [http://faculty.chicagobooth.edu/christian.broda/website/research/unrestricted/Stimulus%20Payments%20and%20Spending.pdf The Impact of the 2008 Tax Rebates on Consumer Spending: Preliminary Evidence]</ref><ref>see [http://pennyhill.com/index.php?lastcat=19&catname=Economic+Policy&viewdoc=RS22790 Tax Cuts for Short-Run Economic Stimulus: Recent Experiences]</ref>

Senator Charles E. Schumer, Democrat of New York, countered by alluding to the deficits that accumulated during the Bush administration and asking rhetorically, "Where were my colleagues on the other side of the aisle for the last eight years?"

Senator Charles E. Schumer, Democrat of New York, countered by alluding to the deficits that accumulated during the Bush administration and asking rhetorically, "Where were my colleagues on the other side of the aisle for the last eight years?"

The final version easily passed the House, which requires only a majority vote and where the Democrats hold a 255-to-178 advantage.  Seven House Democrats voted against the final bill; no House Republicans voted for the final bill. In the Senate, 60 votes are required to avoid a filibuster that can kill legislation, and the Democrats have the advantage 58-41, with one vacancy as Minnesota continues to count votes from the Nov. 2008 election. Therefore at least two GOP senators are needed, and the three voted yes (two from Maine and one from Pennsylvania.)

The final version easily passed the House, which requires only a majority vote and where the Democrats hold a 255-to-178 advantage.  Seven House Democrats voted against the final bill; no House Republicans voted for the final bill. In the Senate, 60 votes are required to avoid a filibuster that can kill legislation, and the Democrats have the advantage 58-41, with one vacancy as Minnesota continues to count votes from the Nov. 2008 election. Therefore, at least two GOP senators are needed, and the three voted yes (two from Maine and one from Pennsylvania.)

Conservative [[Charles E. Grassley]] of Iowa, the most senior Republican on the Senate Finance Committee, complained that 34 states and the District of Columbia will receive less Medicaid money than larger states. The stimulus package "shortchanges" Iowa by $185 million, he said. "It disregards the tough economic situation facing our state and others, and it fails to understand that the recession is hitting places like Iowa a little later than other states, but it is still hitting us."<ref>[http://grassley.senate.gov/news/Article.cfm?customel_dataPageID_1502=19319 Grassley Press Release, Feb. 12, 2009]</ref>  Grassley's efforts to amend the bill were voted down by the Democrats.

Conservative [[Charles E. Grassley]] of Iowa, the most senior Republican on the Senate Finance Committee, complained that 34 states and the District of Columbia will receive less Medicaid money than larger states. The stimulus package "shortchanges" Iowa by $185 million, he said. "It disregards the tough economic situation facing our state and others, and it fails to understand that the recession is hitting places like Iowa a little later than other states, but it is still hitting us."<ref>[http://grassley.senate.gov/news/Article.cfm?customel_dataPageID_1502=19319 Grassley Press Release, Feb. 12, 2009]</ref>  Grassley's efforts to amend the bill were voted down by the Democrats.