–Senate Could Take Up Tax Bill Thursday; Vote To End Filibuster Sat
–Tax Package Likely To Require Coalition of GOP, Dem Votes To Pass
–Lawmakers Differ On If Key Changes Can Be Made To Framework
–Senate Also Will Take Up FY’11 Spending Bill In Next Week

By John Shaw

WASHINGTON (MNI) – The Senate appears to be moving toward a
critical vote Saturday on the tax package that was largely negotiated by
President Obama and congressional Republican leaders.

Under this scenario, the Senate would take up the tax accord later
Thursday and would hold a vote Saturday to end debate on the measure.

Several senators, most publicly Bernie Sanders of Vermont, said
they will try to filibuster the bill. Ending this filibuster would
require 60 votes.

If the 60 votes were secured, the final Senate vote on the tax and
spending measure would likely occur early next week, sending the bill to
the House.

President Obama announced Monday evening the “framework of a
bipartisan agreement” with congressional leaders which would extend all
of the Bush era tax cuts for two years and extend unemployment insurance
benefits for 13 months.

The president said the package would include extending a host
of tax credits, including generous business tax expensing provisions
that should spur growth.

Obama said a centerpiece of the agreement is a 2 percentage
point reduction in the employee share of payroll taxes in 2011.

The agreement would also set the estate tax at 35% above a $5
million per person threshold for two years. The overall cost of the
package is expected to total about $900 billion over two years.

A central issue that remains unclear is what type of changes can
be made to the framework that Obama announced Monday.

Senate Majority Leader Harry Reid said Wednesday the Senate could
take up the tax agreement in “the next day or two,” but added that “some
changes” are still being made to the package.

“It’s something we have to work on,” he said.

Senate Minority Whip, Sen. Jon Kyl told reporters Wednesday that
the bill’s details were being refined, but indicated that major changes
could not be made.

“The deal is resolved,” Kyl said of the tax and spending package,
but then added there are “still some outstanding issues” that he
described as mostly technical.

Kyl said the Senate could take up the measure as early as Thursday.

A number of Democratic lawmakers have been sharply critical of the
package’s estate tax provision which imposes a 35% tax on estates only
after reaching a $5 million threshold.

Democrats have said this provision would cost $68 billion a year
and would affect only 39,000 estates in the U.S. and have no impact on
economic growth.

Some Democrats have been pressing for an estate tax provision that
would set a 45% tax on estates of $3.5 million or more.

Vice President Obama traveled to Capitol Hill Wednesday evening to
explain and sell the plan to restive House Democrats.

Lawmakers said Biden heard first-hand the anger of House Democrats
who believe the administration made too many concessions to Republican
leaders.

There were differing views about whether Biden appeared open to
adjustments to the tax and spending accord.

“I didn’t get the impression there is room for changes,” said Rep.
Rick Larsen, a Democrat from Washington.

But Rep. Henry Waxman said he believes Democrats will try to revise
the package’s estate tax provisions.

But it seems likely that major changes to this part of the accord
would be strongly opposed by Republican leaders.

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

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