–Senate Votes To Block Both Democratic and Republican Plans
–Democrats $35 Billion Package Falls in 50 to 60 Vote; 60 Votes Needed
–Republicans’ $11 Billion Withholding Bill Falls 57 to 43; 60 Needed

By John Shaw

WASHINGTON (MNI) – Confirming that partisanship remains alive and
well in the U.S. Senate, Democrats and Republicans voted late Thursday
evening to block each others scaled-back jobs bills.

In the first vote, Republicans joined with several Democrats to
block a Democratic-crafted $35 billion package that would allow states
and local governments to avoid layoffs for teachers and first
responders.

Senate Majority Leader Harry Reid said the funds would help prevent
up to 400,000 layoffs among teachers and first responders across the
nation.

The package would be funded by a 0.5% surtax on household income
above $1 million. This is a scaled-back version of the 5.6% surtax that
Democrats proposed earlier to pay for President Obama’s $447 billion
jobs plan that was rejected last week.

The Senate vote was on a motion to formally begin debate on the
measure and it required 60 votes to go forward.

The vote was 50 to 50, 10 votes short of the requisite 60.

The Senate then voted on a bill by Senate Minority Leader Mitch
McConnell to repeal a requirement that federal, state, and local
governments begin withholding 3% of certain contract payments.

McConnell said the plan would cost $11 billion and would be paid
for by rescinding discretionary funds.

Reid scorched the plan as a “misdirected political stunt” that,
among other things, violates the constitutional requirement that tax
bills originate in the House.

McConnell’s plan fell short of the 60 needed votes, but he came
closer than Reid did.

The Senate vote on McConnell’s plan was 57 to 43, three votes short
of the 60 required to formally consider the plan.

It seems likely that the Senate will vote on other pieces of
Obama’s jobs bill, but there are, as of yet, no signs of bipartisan
cooperation.

The Senate is scheduled to be on a recess next week but the House,
which has been out this week, will return to Washington.

** Market News International Washington Bureau: (202) 371-2121 **

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