Stimulus Package Support 'Eroding' Says GOP Senators

The U.S. Senate's No. 2 Republican warned Sunday his party's support for President Barack Obama's economic stimulus bill was eroding and "major structural changes" were needed to win Republican support.

"You have to start from scratch and reconstruct this," Sen. Jon Kyl of Arizona told "Fox News Sunday." He said the proposed bill, with a price approaching $900 billion, "wastes a ton of money." Kyl took issue with items in the bill, including a $500 tax rebate, the creation of dozens of new government programs and transfers of cash to states.

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"There would be major structural changes that would have to occur," he said.

Republicans sought not to delay the bill, but wanted "huge amendments that would redirect it" to address the housing industry collapse and provide tax relief measures, Kyl said.

Sen. Richard Durbin of Illinois, the Senate's No. 2 Democrat, told the program that Democrats were "very open" to Republican ideas and amendments to the bill, including provisions on infrastructure spending and to provide oversight to avoid mistakes made in implementing the TARP bailout program.

The Obama administration and Democrats have already cut two provisions in the bill passed by the House of Representatives without a single Republican vote.

Dropped from the bill was $200 million to fix up the National Mall and millions for family planning that Republicans said would fund contraceptives.

Cabinet Choices

Meanwhile, Kyl went on to say he's troubled by health secretary nominee Tom Daschle's failure to pay his taxes on time. But Kyl says it's too early to tell if Daschle's nomination is in trouble.

Kyl is on the Senate Finance Committee, which plans to meet in executive session on Monday to discuss the nomination.

Daschle, a former Senate majority leader, is President Barack Obama's choice to leave health reform efforts in new administration. Daschle recently filed amended tax returns to report $128,203 in back taxes and $11,964 in interest.

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The amended returns reflect additional income for consulting work, the use of a car service and reduced deductions for charitable contributions.

GOP Sen. Jim DeMint of South Carolina wants to find out more about the matter, but says it could disqualify Daschle from serving as health secretary. He calls the disclosure disheartening.

As for another cabinet position, Kylo said Sunday that President Barack Obama would be making a wise choice if he picks New Hampshire GOP Sen. Judd Gregg as his commerce secretary, even though the move could deliver Democrats control of the Senate.

Gregg has emerged as the leading contender and an announcement could come as early as Monday, an administration official said. It's unclear, though, who would replace the fiscal conservative in the Senate, where Democrats are on the verge of a 60-vote majority that would allow them to push forward legislation without fear of a GOP filibuster.

Kyl cautioned that it's not a certainty that New Hampshire Gov. John Lynch would appoint a fellow Democrat to replace Gregg. He also doubted that Republicans would lose the ability to filibuster if Gregg left.

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