January 4th, 2009
02:01 PM ET
13 years ago

Senate Minority Leader urging state loans, tax relief for middle class

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/images/01/04/art.getty.mcconnell.jpg caption="Mitch McConnell wants a Republican voice in the economic stimulus package President-elect Obama hopes to pass after he is sworn into office."]
WASHINGTON (CNN) - Senate Minority Leader Mitch McConnell told CNN what he hopes to get out of the Senate and House bipartisan leadership meeting with Obama on Monday, after his appearance on ABC’s ‘This Week with George Stephanopoulos.”

The most powerful Republican in the Senate wants the president-elect to give Republicans more of a voice in regards to the stimulus package. He proposed an immediate 10 percent tax cut for the middle-class, and financial help to states in the form of loans rather than grants.

“We ought to pass, in my view, an immediate tax relief for the middle class. This is something that I think there will be bipartisan agreement on. Currently the middle class tax rate is 25 percent. I think it ought to be brought down to 15.”

Regarding state assistance, the Kentucky senator proposed the same approach used in the financial rescue package to bail out financial institutions on the verge of bankruptcy.

“Charge them 5 percent - make it a loan. Charge them 5 percent over the first 5 years and 9 percent after that. I think that states don't want the money under those circumstances won't take it. Those that do will spend it wisely because they will not want to pay interest on doing things like building mob museums or water slides," McConnell said.

The Republican senator also commented on how the economic stimulus package should be constructed and successfully carried out, referring to the three principles used by House Speaker Nancy Pelosi to frame her support of a bipartisan stimulus package in January 2008.

"I think we ought to make sure that we follow the admonition of the Speaker last year in talking about stimulus packages. She said they ought to be timely, temporary and targeted. In other words we ought to try and avoid the temptation to use this stimulus package as a basis for systemically increasing spending,” McConnell said. ”In other words, changing things that increase spending in the out years dramatically. Timely, temporary and targeted would be the best way to go at this spending package."

soundoff (59 Responses)


    January 4, 2009 06:12 pm at 6:12 pm |
  2. Mena Freeman

    Why aren't there restrictions on how much banks can charge customers in fees? They were given billions in bail out money yet continue to charge millions to customers in excessive fees. And we still can't get a loan.

    January 4, 2009 06:21 pm at 6:21 pm |
  3. FreeNLovIt

    We need to cage these elephants and only let the truly intelligent ones SPEAK.

    January 4, 2009 06:22 pm at 6:22 pm |
  4. FreeNLovIt

    To Proud America..

    You mean send the elephants to Correctional Facility? There are facilities for teenagers, perhaps we need them for our politicians. I think it's hard for them to do the right thing and they need help. I dont know, we seriously need to help develop a process to BREW decent politicians. Must America DIE a dumb death of greed and corruption?

    January 4, 2009 06:24 pm at 6:24 pm |
  5. John G

    So the leading Republican is coming up with ways to not waste taxpayer money and put more money in the hands of those same taxpayers by reducing their liability while the leading Democrat is badmouthing the outgoing president?

    I can't wait for the next four years!

    January 4, 2009 06:46 pm at 6:46 pm |
  6. Paul

    Loaning money to the states is a great political idea but not very helpful for those states who by their constitution are not able to go into debt. Try again folks and quit trying to sound like you want to do something to help when you haven't done your homework.

    January 4, 2009 06:57 pm at 6:57 pm |
  7. Godluvr

    Mr. McConnell, exit, stage left. Stop being a crybaby.

    January 4, 2009 06:59 pm at 6:59 pm |
  8. Judy, Mia. Fl

    On a daily basis, we need to keep an eye on Wachington and write, call, email any of those bozo's who do not cooperate fully to get us out of this mess.

    WRITE, CALL, EMAIL AND place phone call your senator or rep whenever you don't like their position on anything Obama & team proposes. It is my humble opinion that we need more parties and we need to elect real people not politicians to represent us. We need moms, lawyers, doctors, indian chiefs, college students, military, blue collar workers...real people who care about the USA to make the laws.


    January 4, 2009 07:00 pm at 7:00 pm |
  9. Godluvr

    To indiana voter:

    Are you in love with Proud American? This is not eHarmony, but I guess anyway you can hookup huh? Good luck.

    January 4, 2009 07:05 pm at 7:05 pm |
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