Obama fails to sway Ensign, Heller on stimulus bill

WASHINGTON -- President Barack Obama met Tuesday with Republicans in Congress to drum up support for his economic stimulus plan but failed to entice Nevada's two Republicans to his side.

Rep. Dean Heller said he plans to vote against the $825 billion bill when it reaches the House floor today. He maintains the bill contains billions of dollars in new spending that won't create jobs but will force the government to borrow record sums and dig the nation deeper into debt.

Likewise, Sen. John Ensign said he has problems with stimulus legislation as it is taking shape in the Senate. Its spending levels, he said, are "obscene."

He also questioned whether there are enough tax breaks in the bill and whether they are the right ones.

Obama's trip to Capitol Hill came on the eve of the major vote on the stimulus strategy that he proposed and that was adapted into legislation largely by Democrats. Although Obama has said he would like broad support, he appeared to add few if any Republican backers.

Nevada Democratic Reps. Shelley Berkley and Dina Titus have said they will vote for the stimulus legislation in hopes its combination of pump-priming spending and tax cuts for families and businesses will jump-start the economy.

Sen. Harry Reid of Nevada has been overseeing the Democratic bill-writing as Senate majority leader.

In critiquing the Obama plan, Ensign and Heller took exception to the funding that would be sent to state and local governments, a feature that Gov. Jim Gibbons has said would be the most helpful for Nevada to plug gaps in its budget as it struggles through the economic crisis.

The package would send $200 billion to state governments, which are being called the big winners in the Obama plan. Nevada's share is projected at $1.3 billion, according to analyses cited by the governor's aides.

Ensign said, "The amounts of money we are giving to the states is obscene."

"States have increased spending over the last six or seven years at a much higher rate than inflation and a much higher rate than population growth," he said. "The states, while they may need some help, the amount of help we are giving them is excessive."

"I am sure this bill is going to pass, and I am sure they are going to get their help," Ensign said. "I just think we should be thinking about the debt that we are building."

Heller said he was troubled that the federal government will be borrowing money to bail out the states.

By doing that, "we are just creating a long-term, much larger problem," Heller said.

The Nevada Republicans praised Obama for the personal appearances he made separately with House and Senate members.

They said the president offered hope that GOP members would have more input before a final bill is formed.

"We got more opportunity for feedback in that half-hour than we have had in the last two weeks with the Democrats in the House leadership," Heller said.

Ensign's aides confirmed a published report that Obama in his Senate meeting promised that he would review two corporate tax breaks the Nevadan has been promoting.

One would allow corporations to negotiate down their debt and avoid taxes for two years on the amounts that are written off.

Ensign has argued that would allow companies to clear their books of bad debt and free up money for hiring and operations.

The second would lower taxes on profits that U.S. companies earn from their overseas subsidiaries if the money is returned to the United States and reinvested.

Contact Stephens Washington Bureau Chief Steve Tetreault at stetreault@ stephensmedia.com or 202-783-1760.