White House, Hill leaders want talks on stimulus plan

Associated Press WriterWASHINGTON (AP) -- The White House joined congressional leaders Thursday in calling for bipartisan talks over their rival multibillion-dollar plans for reviving the stagnant economy. But there was a partisan clash over whether a final package should include new spending.

A day after a Democratic-written $73 billion package of tax cuts and spending stalled in the Senate, White House spokesman Ari Fleischer called the plan "nothing more than a Democrat spending proposal."

Fleischer said President Bush wants bargainers to meet and "produce a bipartisan economic stimulus bill that encourage consumer spending, promotes business investment and helps dislocated workers."

Earlier, congressional leaders of both parties also called for talks but disagreed over what the final package should look like.

"It's time to do it," Senate Minority Leader Trent Lott, R-Miss., told reporters. But he added, "This is not the time to hold us hostage to additional spending" that could usher a return to federal deficits.

House Speaker Dennis Hastert, R-Ill., said he too wanted talks to begin on cutting taxes, not boosting spending. Earlier this week, top House Republicans seeking bargaining leverage said there would be no talks until Democrats tried pushing their proposal through the Senate.

"If you start adding on, Katy bar the door," Hastert said separately.

While a $100 billion measure approved by the GOP-dominated House focused on tax reductions, the smaller Democratic plan bogged down in the Senate contains billions for increased unemployment and health care benefits. It also has an additional $15 billion for law enforcement, protecting important facilities and other domestic security programs.

"Our team is ready" for talks, said Senate Majority Leader Tom Daschle, D-S.D. But he insisted on participation by Sen. Robert Byrd, D-W.Va., who chairs the chamber's Appropriations Committee, which oversees spending legislation.

Republicans want a new round of rebate checks of up to $300 for singles and $600 for married couples who got none or only part of last summer's rebates. The president also wants corporate tax breaks and an acceleration of income tax cuts now set to take effect in 2004 and 2006.

Democrats agree on the rebate checks, but also want more generous unemployment and health benefits for the jobless than the GOP prefers.

Across the Capitol, Republicans on the House Appropriations Committee delivered a victory to Bush Wednesday by fending off efforts by New Yorkers and Democrats to add billions to a $20 billion anti-terrorism package.

But GOP leaders hoping to bring the bill to the full House by week's end may run into opposition by Republicans from New York and other communities harmed by the Sept. 11 terrorist attacks. They said Wednesday they might block debate unless party leaders agree to allow votes on adding funds for their states.

"We'll see where we go from here," said Rep. John Sweeney. He and Rep. James Walsh are the Appropriations Committee's only two New York Republicans.

The pair was joined by all committee Democrats, but the panel voted 33-31 to reject an extra $9.7 billion for lower Manhattan and other locales still struggling to recover from the attacks.

That vote followed days of heavy lobbying by the White House and House GOP leaders. Bush had threatened to veto any spending that surpasses the $40 billion for anti-terrorism programs that Congress provided three days after the hijackings and crashes that killed thousands.

New Yorkers said Bush promised to provide half the $40 billion for New York and other areas hit by the terrorists. So far, just under $10 billion has been set aside for New York, and lawmakers say the city's economy is still reeling.

The panel also voted 34-31 to reject an amendment by Rep. David Obey, D-Wis., that would have added $7.2 billion to counter bioterrorism, the spread of weapons of mass destruction and beef up other domestic security programs. Once again, Walsh and Sweeney were the only defectors.

By voice vote, the committee defeated an amendment by Rep. John Murtha, D-Pa., providing an additional $6.5 billion for the Pentagon and intelligence agencies.