Corker voices concern about economic stimulus package

(AP) ‘ Sen. Bob Corker is skeptical whether a bipartisan plan to boost the economy by offering tax rebates is the best way to fix the U.S. economy.

The Tennessee Republican said Thursday that the stimulus package would give the economy a temporary boost, but it wouldn’t fix fundamental problems like Americans’ low savings rate.

“I just have concerns about sprinkling money out and then encouraging people to immediately spend it, not to save it,” he said in a phone interview with The Associated Press.

Congressional leaders earlier Thursday announced an agreement to give most tax filers refunds of $600 to $1,200, and more if they have children.

Corker says he will keep an open mind about the proposal as it works its way through the House and Senate. But he also worries about the $100 billion cost of the proposal.

“This stimulus package, as constructed, is not something any of us here will pay for,” he said. “This is 100 percent borrowed money that’s basically being passed on and compounded to future generations.”

Individuals who pay income taxes would get up to $600, working couples $1,200 and those with children an additional $300 per child under the agreement. Workers who make at least $3,000 but don’t pay taxes would get $300 rebates.

President Bush had supported larger rebates of $800-$1,600, but praised the most recent agreement.

The package would also include close to $50 billion in business tax cuts.

“I really am concerned that what I’ve seen here in Washington that there’s absolutely no construct whatsoever for fiscal discipline,” Corker said. “None.”

Corker said it would be difficult to explain to taxpayers why they should not get refund checks now that the deal has been announced. But he argued that more fundamental economic issues are at stake.

“My heart goes out to people dealing with higher gasoline prices, higher food prices,” he said. “But that’s not what this deal is about.”

Also Thursday, Corker was moved from the Armed Services Committee to the Committee on Banking, Housing and Urban Affairs. His move was required because Senate Republican rules prevent members from serving on both the Foreign Relations and Armed Services panels.