Dems offer smaller jobs bill in bid for support Sen. McCain faces toughest re-election challenge

Stung by criticism that a bipartisan jobs bill emerging in the Senate wouldn't create many jobs, Senate Democrats on Thursday proposed a new, stripped-down version they hope will still get support from both Republicans and Democrats. Republicans, however, accused Democrats of reneging on their deal, putting in jeopardy a short-lived attempt at bipartisan lawmaking. Senate Majority Leader Harry Reid's latest bill focuses on several popular provisions aimed at boosting job creation, including a new tax break negotiated with Republicans for companies that hire unemployed workers and for small businesses that purchase new equipment. It also would renew highway programs and help states and local governments finance large infrastructure projects. Reid, D-Nev., unveiled the pared-back plan after Senate Democrats balked at a broader bill stuffed with unrelated provisions sought by lobbyists for business groups and doctors. The surprise blew apart an agreement with key Republicans like Chuck Grassley of Iowa, who worked with Finance Committee Chairman Max Baucus, D-Mont., for weeks to produce a bill containing the extra provisions. The original bill had won support from across the political spectrum, from President Barack Obama as well as conservative Republicans in the Senate, offering the promise of a rare bipartisan package in a Congress that has been gripped by partisan fights. To get that support, however, the package had morphed into a 361-page grab bag of provisions that included extending benefits to the unemployed and tax breaks for businesses.