Senate to debate "Cash for Couches" to help furniture industry

Aug 3, Washington DC

The US Senate today debated a new stimulus proposal dubbed "Cash for Couches" designed to lift the depressed domestic furniture industry. While the US auto market is only 50% domestic production, the Upholstered furniture market is over 90% produced in the United States, predominately in the North Carolina region.
"We would welcome the chance to put our laid off employees back to work," said Jim Leviton, CEO of Heritage Furniture. Heritage makes a furniture sold under a varitety of store brand names, and employs 350 people in its Winston-Salem plant. Earlier this year, 75 employees were laid off due to lack of demand.

The new "Cash for Couches" program would provide up to $500.00 trade-in for any couch or upholstered chair, regardless of condition. Like the "Cash for Clunkers" program, the couches would have to be destroyed to eliminate the possiblity of insect infestations from spreading. Unlike the car program, however, people trading in the couches would not have to provide any documentation of prior ownership for 6 months. Also, the dealer paperwork would be reduced to a single page.

Sen. Barney Frank (D) of Massachusetts said "This program will help get new couches in the hands of people who have been putting off purchases, and also get the furniture industry moving again." The program is proposed to be initially funded with just $200,000,000, which will allow 400,000 families to replace their couches at a reduced price.

Republicans initially indicated their opposition to the bill, but later agreed that nearly 100% of the money would be going to American companies, it was one way they could help stimulate the economy and show some bi-partisan support to be used as a bargaining chip in future health-care debates.

The Senate is expected to vote on the proposal shortly after coming back into session from their Summer recess. The House has not yet taken up a similar measure.