–House Clears Spending and Tax Cut Bill On 277 to 148 Vote
–House First Rejects Amendment To Alter Estate Tax Provisions
–Geithner Says Passage Good for Growth, Jobs

By John Shaw

WASHINGTON (MNI) – The House passed at about midnight the $858
billion tax cut and spending package that was negotiated by President
Obama and congressional Republicans and approved by the Senate
Wednesday.

The House approved the bill on a 277 to 148 vote, sending it to
Obama for his signature.

The Senate passed an identical bill Wednesday on a 81 to 19 vote.

The package is based on the agreement that Obama reached with
Republican leaders last week. It extends all of the Bush era tax cuts
for two years and extends unemployment insurance benefits for 13 months.
It includes the extension of a host of expiring or expired tax credits,
including business tax expensing provisions that are designed to spur
growth.

The agreement provides for a 2 percentage point reduction in the
employee share of payroll taxes in 2011.

The agreement also sets the estate tax at 35% above a $5 million
per person threshold.

Of the bill’s $858 billion cost, about $364 billion is spent on
extending the Bush tax cuts of 2001 and 2003, $137 billion is for AMT
relief, $111 billion for the payroll tax holiday, $68 billion for the
estate tax changes, and $56 billion for the unemployment insurance
extension.

Treasury Secretary Tim Geithner immediately issued a statement
saying passage “is good for growth, good for jobs, good for working and
middle class families, and good for businesses looking to invest and
expand their workforce.”

Before approving the bill, the House rejected an amendment by
Democratic congressman Earl Pomeroy that would have changed the
package’s estate tax provisions. The amendment would have levied a 45%
tax on estates worth $3.5 million or more for individuals and $7 million
for a couple.

It was defeated on a 194 to 233 vote.

The House then moved to pass the tax cut and spending package.

The Senate and Houses votes this week conclude a months-long battle
between Democrats and Republicans over the fate of the Bush era tax
cuts.

Congress must also pass a measure to fund the government by the end
of the week. The current stop-gap spending bill, which is funding the
government, expires Saturday.

The House passed a year-long stopgap spending bill last week.
Senate Democrats have drafted a $1.1 trillion omnibus spending bill that
includes all 12 of the regular spending bills for FY11.

Earlier Thursday evening, the Senate blocked consideration of the
omnibus spending bill.

Senate Minority Leader Mitch McConnell said Republicans want
Congress to pass a spending bill that funds the government until Feb.
18, rather than a year-long bill.

Senate Majority Leader Harry Reid said he will work with McConnell
to pass a short-term funding bill to keep the government fully
operational.

** Market News International Washington Bureau: (202) 371-2121 **

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