–Senate Majority Whip Says Dems Would Like To Tax Agreement This Year
–Sen. Durbin: Looking For ‘Some Indication’ That GOP Will Deal
–Sen. Durbin: Hill Meeting With Obama On Thursday Is Important
–Senate Majority Leader Reid: Must Fix ‘Staggering’ Economy
–Senate Democrats, Republicans To Re-elect Leaders

By John Shaw

WASHINGTON (MNI) – Senate Majority Whip Richard Durbin, the second
ranking Senate Democrat, said Tuesday that Democrats want to reach a
compromise with Republicans on extending some of the Bush era tax cuts,
but added he has seen no flexibility from Republicans.

In comments to reporters, Durbin said that Democrats want to find a
“solution” to the tax cut extension impasse, adding he would “prefer to
see it resolved this year.”

But Durbin said that so far only Democrats have show any
inclination that they are willing to move off of their pre-election
positions on taxes in “an honest effort to get this done.”

He said that he is looking for “some indication” that Republicans
want an agreement.

Durbin said he hopes the meeting between congressional leaders and
President Obama Thursday is a “good, productive meeting,” but appeared
to downplay the likelihood for a bipartisan agreement on taxes during
that session.

President Obama has been sending signals since the mid-term
elections that he is willing to back down from his long-held position
that the Bush tax cuts be extended only for those individuals making
$200,000 or less and couples making $250,000 or less.

Earlier this year, incoming House Speaker John Boehner suggested
the Bush era tax cuts be extended for two years and that discretionary
spending be cut back to 2008 levels. But since the election Boehner has
taken a harder line, saying all the Bush tax cuts should be extended
permanently.

Some congressional Democrats have floated another idea: extending
the so-called middle class tax cuts permanently, but extending those for
upper income earners for a year or two.

Renewing all Bush era tax cuts for a decade would cost about $4
trillion — far more than any spending cut proposal discussed by either
party.

Durbin spoke after a party meeting in which Senate Democrats
re-elected Senate Majority Leader Harry Reid as the Democratic leader.
Senate Republicans re-elected Senate Minority Leader Mitch McConnell as
the Senate GOP leader.

Speaking after the vote, Reid said Democrats will focus on “the
middle class and creating jobs.” Steps are needed, he said, to bolster
the “staggering economy.” He offered no specific ideas.

McConnell also said that Republicans want to move forward and push
the agenda that they embraced during the election including the repeal
of last year’s health care reform law.

McConnell ducked a question about whether he would support
legislation altering the Federal Reserve Board’s mandate, saying it was
one of many issues that will be discussed in the coming weeks.

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

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