–Senate Majority Leader: Expects Votes On ‘A Number of Amendments’
–Senate Minority Leader: House Struggling To Pass Tax Extenders Bill
–Sen. McConnell: Extenders Bill Would Cost More Than All Health Savings

By John Shaw

WASHINGTON (MNI) – Senate Majority Leader Harry Reid said Wednesday
that he is determined to “move forward” on a war spending bill that is
pending in the Senate.

Reid, in comments on the Senate floor, said he is trying to
“arrange votes” on a number of amendments so that the Senate is able to
pass the emergency spending bill this week.

The Senate is considering a $59 billion supplemental spending bill
in which about $33 billion is allocated for operations related to
Afghanistan and Iraq. Among other things, these funds will be used for
the president’s expansion of 30,000 additional American troops in
Afghanistan as well as some reconstruction funds.

The bill partially funds the president’s request of $118 million
for the Gulf of Mexico oil spill and some relief monies for Haiti. It
also allocates $5 billion for FEMA to replenish its funds to deal with
natural disasters.

The bill also includes $13 billion in mandatory funds to compensate
Vietnam veterans exposed to Agent Orange.

Democratic senator Tom Harkin is trying to add $23 billion in aid
to states to avoid the layoffs of hundreds of thousands of teachers.

Several Republican senators, including John McCain and Kay Bailey
Hutchison, are offering border security amendments, including one which
would deploy 6,000 National Guard troops to the Southwest border.

Republican senator Tom Coburn has said that he will offer an
amendment that would require the package to be offset.

Speaking on the Senate floor, McConnell said Republican senators
are eager to take up a bill that is expected to be considered by the
House today: a $192 billion package of tax cuts and benefit extensions
that was unveiled last week.

McConnell said that passing this large package without offsets is
“fiscal recklessness.”

McConnell said the tax extenders package would increase the deficit
by $134 billion over 10 years — which is more than the total 10 year
savings of the health care bill.

McConnell said the U.S. has just reached the $13 trillion debt
mark, a grim milestone that portends dark days ahead for the U.S. unless
policymakers act soon.

The package before the House would extend about a dozen tax cuts
that expired at the end of last year, expand unemployment benefits,
health insurance subsidies for unemployed workers, and provide Medicaid
funds to the states.

Only about $60 billion of the package would be offset and some of
these offsets are controversial. The package changes the treatment of
carried interest earned by private equity fund managers, venture
capitalists, and real estate investors.

Under the plan, instead of being considered as capital gains, 75%
of their carried interest would be treated as ordinary income for tax
purposes. Only the remaining 25% would be taxed as capital gains.

Some House Democrats are urging the $192 billion package be scaled
back so that it is far less costly.

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

[TOPICS: M$U$$$,MFU$$$,MCU$$$]