Democrats pressure Obama to alter $775B stimulus plan

WASHINGTON — President-elect Obama is coming under strong pressure from his own party to alter the basic mix of his $775 billion stimulus plan, reducing the portion devoted to tax cuts and devoting more money to direct spending for roads, bridges and other projects.

Obama has laid out a proposal that would reserve about 40 percent of the stimulus package for tax reductions — a commitment partly meant to win over congressional Republicans who would ordinarily oppose spending on so large a scale.

In the first major legislative push of his presidency, Obama is eager to notch a large, bipartisan victory.

At this point, Obama is not considering scaling back his tax-cut plans, a transition aide said Tuesday.

Influential Democrats caution they want less reserved for the tax reductions Obama has embraced to help jump-start the economy. Obama's tax measures are targeted at both middle-class families and businesses.

Brendan Daly, a spokesman for House Speaker Nancy Pelosi, D-Calif., said she would prefer more of the stimulus package (67 percent) be devoted to public works.

Obama went to the Capitol on Tuesday to meet with Democratic senators. He used the forum to urge them to vote for the stimulus, and also to persuade them not to block access to $350 billion in federal bailout money approved last year.

"Many of us are concerned that 40 percent of the package that was announced was to be tax cuts," said Sen. Dianne Feinstein D-Calif.

She said she was confident the tax component of the plan would be decreased.

Feinstein, in a follow-up interview, made the case for heavy investment in public-works projects that would create new jobs while leaving an enduring legacy.

"The way I look at it is that we need to get as many necessary shovel-ready infrastructure projects as possible," Feinstein said.

Democrats have already succeeded in getting Obama to drop one piece of his plan.

Obama had wanted to give employers a $3,000 tax credit for each new employee. He is abandoning it after resistance from Democrats who predicted the measure would prove ineffective, the Obama aide said.