Democrats aim to please on economy

Reporting from Washington — 

Eager to portray themselves as responsible stewards of the economy, congressional Democrats on Thursday pledged to enact a package of measures to spur job growth while taking steps to tackle the burgeoning federal budget deficit.

“Our No. 1 emphasis is going to be on creating jobs,” Senate Majority Leader Harry Reid (D-Nev.) said as he unveiled a set of proposals he hopes to pass in the coming weeks.

At the same time, the House on Thursday passed a bill that requires legislation to detail how any proposed spending program or tax cut would be offset by savings elsewhere. That bill goes to the White House for the president’s signature.

Both actions were part of a concerted effort by Democrats to rebut criticism that they have been too preoccupied by the healthcare debate to focus on the economy. Sen. Charles E. Schumer (D-N.Y) acknowledged that last month’s election in Massachusetts -- in which Republican Scott Brown claimed a longtime Democratic Senate seat -- had served as a wake-up call.

“We heard the message of Massachusetts,” Schumer said. “They said, ‘Focus immediately and don’t take your focus off jobs.’ ”

As though to underscore the political vulnerability of Democrats in advance of this year’s midterm elections, the House also approved an increase of the federal debt limit to $14.29 trillion, a vote likely to be used against them in the fall even though it was necessary to prevent the government from default.

The Senate Democrats’ jobs plan initially would extend a tax incentive to employers to hire new workers. The details of the credit are expected to be completed in the coming days by Finance Committee Chairman Max Baucus (D-Mont.).

A bipartisan proposal offered by Schumer and Sen. Orrin G. Hatch (R-Utah) also is under consideration. The Schumer-Hatch plan would refund the 6.2% share of the Social Security payroll tax to companies of any size that hire workers this year.

Though Reid said Thursday that he hoped to have a vote on a tax-credit bill as early as next week, it remained unclear whether the measure would draw significant GOP support. A sticking point remains how the credit would be financed. Republicans oppose using funds recovered from bailed-out financial institutions.

Details of the full Senate economic plan remained vague, and Democratic leaders refused to say how much it might cost. But it is likely to include tax relief and loan assistance for small businesses, funds for highway infrastructure projects and a bond program to help state and local governments borrow money.

Sen. Bob Casey (D-Pa.) said the chamber must act quickly. “We need a jobs bill, and we need it fast,” he said.

But nobody is calling the plan a second stimulus package. Senate Democrats are leery of passing a package with a massive price tag. Instead, Reid said the effort would be moved in pieces.

joliphant@latimes.com

Janet Hook of the Washington bureau contributed to this report.