House to boost GI Bill as it passes war funding

By Andrew Taylor, Associated Press Writer
Thursday, May 15, 2008 | No comments posted.

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WASHINGTON  — President Bush wants more money for the wars in Iraq and Afghanistan. House Democrats are making him pay a price — increased education benefits for veterans of those conflicts — to pass his long-stalled request.

The House also was poised to approve today an extra tax on wealthier people. The new revenue would help cover the 10-year, $52 billion cost of bolstering the GI Bill and providing those veterans with a college education.

Senators, however, are balking at the one-half of a percentage point increase in tax rates on income topping $500,000 for individuals and $1 million for couples. At the same time, Republicans and business groups say the plan amounts to an increase in taxes on small businesses that pay taxes at the same rates as individuals.

The war spending would provide $163 billion for military operations in Iraq and Afghanistan into next year. But Democrats are focusing more on their add-ons, especially the big increase in the GI Bill and an extension of unemployment insurance for people whose benefits have run out.

The two items, along with proposed restrictions on Bush’s ability to conduct the war in Iraq, have led the White House to promise to veto the measure.

The tax increase on wealthier people was inserted after moderate House Democrats demanded the bill comply with budget rules that require new benefit programs to be “paid for” with accompanying revenue increases or spending cuts.

The new GI Bill essentially would guarantee a full scholarship at any in-state public university, along with a monthly housing stipend, for people who serve the military for at least three years. It is aimed at replicating the benefits awarded veterans of World War II.

The House measure also includes money for foreign aid and military construction projects as well as flood protection around New Orleans and a variety of smaller items. All that brings the total spending to $183.7 billion.

Taken together, the changes to Bush’s war requests probably are not sufficient to provoke a veto on their own. The same cannot be said of Democrats’ plans to extend unemployment benefits or improve the GI Bill.

In addition to the GI benefits, Democrats have tacked on a plan to give 13 more weeks of unemployment checks to people whose benefits have run out and 13 weeks beyond that in states with especially high unemployment rates.

Bush also has threatened to veto any bill that ties his hands on Iraq. The House measure would require Bush to begin pulling out troops from Iraq within 30 days once the bill becomes law, with a nonbinding goal of a complete withdrawal of combat troops within 18 months. The provision is expected to be blocked by Senate Republicans.
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