Obama, Republicans seek common ground on economy

WASHINGTON — President Obama's economic sit-down with congressional leaders Friday ended with senior Republicans sounding less confrontational than they had in recent days. As they emerged from the White House, however, GOP leaders released a counterproposal to the Democrats' $825-billion economic stimulus package -- suggesting that although the gulf separating the two parties on economic policy may have narrowed, it has not closed.

If lawmakers fail to find common ground, Obama may have to choose between compromising some features of his economic strategy and pursuing his goal of broad bipartisanship in the face of the deepening economic crisis.

Leaders of both parties said they expected their differences to be resolved. The House could vote on the stimulus plan as soon as Wednesday. White House Press Secretary Robert Gibbs said the president would go to Capitol Hill early next week "to talk to the Republican caucuses and solicit their input and their ideas."

"Truly, the president was leading us to be united, not divided," said Senate Majority Leader Harry Reid (D-Nev.).

"The administration strikes me as open to our suggestions, and we made a number of them," said Senate Minority Leader Mitch McConnell (R-Ky.).

The Democratic plan, developed jointly by House Democrats and Obama aides, emphasizes stimulating economic demand with fast-acting tax breaks for workers and businesses, creating jobs through direct government spending on infrastructure and other projects, and investing in energy and the environment to promote long-term growth.

It includes about $550 billion in spending programs and $275 billion in tax breaks.

Senate Democrats also decided Friday to extend a $300, one-time bonus benefit to Social Security recipients as part of their plan, a proposal that would add $17 billion to the overall bill.

The GOP proposal emphasizes the party's traditional approach: broad cuts in income and business taxes, and no additional government spending. Republicans did not estimate how much their plan would cost.

"Obviously, we're Republicans. We've got ideas that lowering tax rates and allowing people to keep more of what they earn will allow them to spend that money, invest that money, or save it -- all of which are good for the economy," said House Minority Leader John A. Boehner (R-Ohio).

GOP leaders indicated that even if they couldn't sign on to the Democrats' plan, they would not try to block the stimulus package altogether.