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American Morning

Partisan Stalemate Holding Up Economic Stimulus Package

Aired December 19, 2001 - 08:04   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
PAULA ZAHN, CNN ANCHOR: President Bush heads to Capitol Hill today to thank legislatures for their support during his first year in office, and he's sure to be doing some arm twisting to break the partisan stalemate that now is holding up the economic stimulus package.

Let's turn to Kelly Wallace, who joins us from the White House this morning. I know there's a lot on the president's plate this morning. Why don't we start off with where there does appear to be some agreement that more than $8 billion of aid coming to New York? What can you tell us about that?

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: That is right, Paula. You know, House and Senate negotiators agreed yesterday on what will be a $20 billion anti-terrorism package. This would be attached to the annual defense spending bill, and as you noted, it would include $8.2 billion to help New York City recover after the attack on the World Trade Center. And, Paula, as you know, many New York lawmakers were pushing for a total of $20 billion for New York City.

Now, they say the city needs the money, but President Bush and congressional Republicans say they will give New York up to that amount sometime soon, just not now. And there, of course, you're looking at live pictures, again, the continued cleanup and recovery efforts at the site of where the World Trade Center used to stand.

And then, there is something else, Paula, which Democrats, Republicans, the president all agree on, and that is, as Leon just noted, the president signing into law yesterday a bill declaring September 11 Patriot Day. This will be a day to remember all those victims who lost their lives in the terrorist attacks. The bill would have the president call on all government agencies to lower their flags to half-staff, and also to have a moment of silence to remember the victims. Of course, it is a day, Paula, certainly no American is likely to ever forget -- Paula.

ZAHN: Yes. Now let's talk about the tougher issue that Congress is facing right now, and this is getting a stimulus package passed before the holidays. Is there any chance that's going to happen?

WALLACE: Well, I don't know if you're a betting woman, Paula, but everyone...

ZAHN: No, I'm not.

WALLACE: Oh, OK. Well, everyone is sort of saying this is 50/50. It can really go either way. There is so much jockeying going on. And the sticking points really boil down to how to ensure that laid-off workers will be able to afford health care coverage, and also whether that 27 percent tax bracket should be pushed back to 26 percent or 25 percent next year.

It sounds like there's not a lot to work out, but you know, there are deep philosophical differences between the two sides. The president will be on the Hill meeting with House and Senate Republicans. We'll have to see how this one plays out -- Paula.

ZAHN: All right, Kelly, keep us posted -- thanks so much.

WALLACE: (UNINTELLIGIBLE).

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