MICHELE NORRIS, host:
President-elect Barack Obama has urged Congress to enact an economic stimulus package that would be ready by the time he takes office on January 20th, but it's increasingly unlikely lawmakers can meet that deadline. To find out why, we are joined by House Democratic Majority Leader Steny Hoyer of Maryland. Congressman Hoyer, welcome to the program.
Representative STENY HOYER (Democrat, Maryland; House Majority Leader): Hi. Good to be with you.
NORRIS: Now, it seems like Democrats and Republicans agree that an economic recovery package needs to be worked out, and quickly. So what's the hold-up?
Representative HOYER: Well, I think there is agreement, and we've been working very, very hard since the election, since November 4th. So, it's a very big package. It's a complicated package. And it's important to do it soon, but it's also important to do it right. And we have determined that we need to take the time to make sure that happens. We will, and intend to, pass it before the president's break and have it to the president well before the middle of February.
NORRIS: I want to ask about some of the details of this package. The number that we've seen thrown around is around $775 billion. Is that likely to grow, and how does that need to be carved up so the stimulus package actually stimulates the economy?
Representative HOYER: Michele, what we've been talking about is a package anywhere as low as 500 billion, as high as 1.5 trillion. Many economists have different views on that. But I think when you mentioned 700 to $800 billion, that is certainly the ballpark in which we are now talking. The components of that will be, first of all, it's critical that we get this economy moving and create jobs, but we need to help those who have been hurt by this economy, make sure that unemployment insurance is available, make sure that food stamps are available to people.
Secondly, we need to create jobs. Infrastructure is one of the ways to do that and create jobs here in our country. There's going to be a very substantial component of this bill that will deal with infrastructure. Lastly, there's going to be a very substantial component which will deal with a tax cut so that average working Americans, some 95 percent of the taxpaying public, will have more dollars in their pocket to put back into the economy. We think that will help get the economy moving and help working families who are struggling.
NORRIS: There's still some wrangling over the price tag. The price tag has not been set. But even the numbers that are discussed at this point, the Republicans are saying that the numbers are too high. Are you willing to make some sort of downward adjustment in order to bring the GOP into the fold so you can move forward with these negotiations?
Representative HOYER: Well, you know, I think some Republicans may be saying that the number is too high, but there are an awful lot of Republicans and Republican economists who are saying the number is too low. But the fact is that almost everybody believes that it needs to be a very substantial number. And I think the 700 to $800 billion is probably where we're going to be, which is deemed by almost all the economists I talk to, to be a sum necessary if we're going to have the positive effect on the economy that this is designed to do.
NORRIS: Congressman Hoyer, it seems that it wasn't all that long ago that the big debate on Capitol Hill seemed to center around balancing the budget or deficit reduction. As you well know, the numbers in the deficit just keep growing and growing and growing. Is there any hope that you might be able to sort of chip away at that deficit or hope to get close to balancing the budget within an Obama term?
Representative HOYER: Michele, I think balancing the budget within the next four years, frankly, is not fiscally possible. Every economist understands that we're going to go into deeper debt in the short term to try to get this economy moving. And if we don't get the economy moving, the debt is going to get deeper simply because revenues are going to plummet and our economy is going to slow down even further. So, frankly, you're damned if you do, and you're damned if you don't. So we need to incur this debt. But we are very focused on, in the medium term and long term, making sure that we get back to fiscal balance.
NORRIS: Congressman Hoyer, thanks so much. Always good to talk to you.
Representative HOYER: You bet.
NORRIS: Steny Hoyer is a congressman from Maryland. He is the Democratic majority leader in the House.