STEPHANOPOULOS: Well, President-elect Obama says he does want to do that, a $500 tax credit. MCCONNELL: Yes, right. This is the sort of thing we could -- we could have bipartisan agreement on. But Republican, by and large, think tax relief is a great way to get money to people immediately.
A possibility would be to take a look at the 25 percent rate currently applied to the middle class, lower it to 15 percent.
And with regard to the money to the states, one item -- one approach that I think we ought to take a look at, that I have a feeling won't be in the recommendation of the administration, is to make this money for states alone, rather than a grant.
You know, the way we're operating, under the TARP, the Troubled Asset Relief Program, the money that's being lent to financial institutions is at 5 percent over five years. And if it's beyond five years, the rate is 9 percent.
There are some states that are in good shape. In fact, I can think of at least two who have said publicly they don't want any of the money.
MCCONNELL: So why should we automatically provide funds to states...
STEPHANOPOULOS: Well, there are several states struggling...
MCCONNELL: ... that don't want it.
STEPHANOPOULOS: ... as well. Is that a red line for you? If these are grants to the states, you're not going to support it?
MCCONNELL: No, I'm not saying that. I'm saying we want to be a part of the process. And it might make sense to lend the money to the states. It will make them spend it more wisely.
I think nobody thinks we ought to be spending this money on things like Mob museums and waterslides. And if the money were lent rather than just granted, states would I think spend it wisely, and the states that didn't need it at all wouldn't take any.
STEPHANOPOULOS: Two other ideas the Democrats are discussing on Capitol Hill right now are extending unemployment benefits to part- time workers and expanding health care benefits for the unemployed. Can you support that?
MCCONNELL: I might, but those are very big, systemic changes. What the speaker said last year with regard to stimulus packages I think makes sense -- timely, and temporary, and targeted. Do we in the name of stimulus want to make long-term, systemic changes that will affect spending every single year? I think that's at least worth considering, having hearings about, having bipartisan discussions.
What I worry about, George, here is the haste with which this may be done. This is an enormous bill. It could be close to a $1 trillion spending bill. Do we want to do it with essentially no hearings, no input, for example, in the Senate from Republican senators who represent half of the American population? I don't think that's a good idea, and I don't think that...
STEPHANOPOULOS: So you think it's unwise for the Democrats to push for this to be done by the time that President-elect Obama takes office?
MCCONNELL: No, it shouldn't be done. I don't think that they even seriously can defend, and I don't think my friend Dick Durbin was defending doing this without bipartisan consideration. And I -- you know, this was, I think, the Democrats in Congress idea, not the president's idea, to have it on his desk by January 20th. That's just not a practical thing to do.
If we want to do a bill immediately, again, my recommendation is the omnibus appropriations bill. It's ready. These were nine bills that were not passed by October when they should have been passed. They're ready to go. They've already been vetted by both sides, would pass on an overwhelming, bipartisan basis, and much of that spending, George, would be on things similar to what the president may be asking for in that package.
STEPHANOPOULOS: But isn't a lot of that money already out there through the continuing resolution? A fair amount of that money is...
MCCONNELL: No -- well, some of it is, but it's not -- it's not very targeted. A continuing resolution doesn't target things very much, doesn't have any congressional input in it. And it could be done quickly. If we want to do something quickly, let's do something that's already been vetted.
I don't think we have to delay the stimulus package for a lengthy period of time, but I've given you three ideas today that make a lot of sense, that ought to be considered.
STEPHANOPOULOS: Bottom line, will President-elect Obama get the 80 or so votes he's looking for in the Senate?
MCCONNELL: I think if they pursue a fair process, in the Senate at least, where fairness is typically the rule, and give both sides an opportunity to have input, to have it -- a true bipartisan stamp -- he's likely to get significant support.
STEPHANOPOULOS: Do you support the Democrats' refusal to seat Roland Burris?
MCCONNELL: I think there ought to be a special election in Illinois. Again, Senator Durbin suggested that initially, and then did a 180 today after that, and decided they didn't want to have a special election. I think the fear is that Republicans might somehow win the seat in Illinois if there's a special.
But the process is so tainted, it is such a tangled mess, as you can see, that the only way to clear the air and to have a successor chosen in Illinois that everybody can have confidence in, and a process that they can have confidence in, would be to have a special election.
STEPHANOPOULOS: Finally, we're just about out of time, but do you agree with Senator Durbin that Israel's ground operation now in Gaza is understandable?
MCCONNELL: Absolutely. Hamas is a terrorist organization. Imagine in this country if somebody from a neighboring country were lobbing shells at our population. We'd do exactly the same thing. I think the Israelis are doing the only thing they can possibly do to defend their population.
STEPHANOPOULOS: Senator McConnell, thanks very much for your time this morning.
MCCONNELL: Thank you, George.
END
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