Congressional Debate Expected Over an Economic Bill That Could End Foreclosure Problem
January 20, 2009 is the target date aimed by Democratic lawmakers to pass a bill which they claimed could save the country's economy and help reduce the number of distressed homes. This is also the day when Barack Obama will be inaugurated as the new President of the United States.
However, the enactment of the economic bill that can provide relief to homeowners facing the threat of foreclosure is expected to be delayed into the last week of January or first week of February, according to Dan Clifton, an analyst with Strategas Research Partners, an investment research firm.
He said that Republicans do not want to vote on a big spending bill without knowing what it is in it.
The economic recovery bill, which is expected to also abate the alarming rate of foreclosures in the country, is estimated to exceed $700 billion. If approved, this will be the largest spending measure of all time.
Senate Minority Leader Mitch McConnell explains that lawmakers owe it to the American people to review the proposal, at least for a week, to ensure that there will be no fraud and to avoid abuse and mismanagement of taxpayers' funds.
Both House Minority Leader John Boehner and McConnell have called on the Congress to conduct hearings on the economic recovery bill that is also expected to end foreclosure problems.
Clifton believes that Senate Democrats may include measures that may entice moderate Republicans to support the bill. He thinks that Democrats may include a tax break provision, called net operating loss carryback that permits businesses to apply their losses to cut down their tax liability.
However, he expects that the impending release of the yearly Budget and Economic Outlook by the Congressional Budget Office will impede the passage of the economic recovery bill and hinder giving an immediate solution to the problem of foreclosure properties.
The annual report is said to contain the United States' estimated deficit which is expected to be near $1 trillion.
Related Posts:
- Obama Gearing for Foreclosure Prevention
- Foreclosed Properties Cloud Florida Governor’s Budget Speech
- Foreclosure Bill Changes to Ease Georgia Foreclosures
- Southern Nevada to Have More Repossessed Houses
- Financial Aid Program to Abate Foreclosures Problem Still Work in Progress
