–Senate Dems Fail To End GOP Filibuster On Two Tax-Cut Versions
–Senate Majority Leader: Hopes A Bipartisan Tax Deal Ready By Thursday
–Sen. Reid: Hopes For Tax Cut ‘Arrangement’ By Thursday

By John Shaw

WASHINGTON (MNI) – In test tax-cut votes Saturday that appeared
designed mostly to clear the decks for intense bipartisan negotiations
next week, Senate Democrats failed to end Republican filibusters on two
versions of legislation to extend some of the Bush-era tax cuts.

The first vote was on a plan by Senate Finance Committee Chairman
Max Baucus to extend Bush era tax cuts for individuals making $200,000
or less and couples making $250,000 or less.

The motion to end the debate was 53 to 36, but failed because 60
votes were required to end the GOP filibuster.

The Baucus plan was identical to the measure the House approved
last Thursday on a 234 to 188 vote.

The second vote was on an alternative by Sen. Chuck Schumer which
would have extended Bush era tax cuts for those making under $1 million.

The motion to end debate on this bill was 53 to 37, again falling
short of the 60 votes that were needed.

Between the two votes, Senate Majority Leader Harry Reid signaled
that Democrats never expected either the Baucus or Schumer bills to
pass.

Reid said that he hoped a bipartisan tax “arrangement” can be
reached by this coming Thursday.

Reid also said that he hopes Congress can complete its work by Dec.
17

This was an indirect reference to the fact that while congressional
Democrats have held test votes in the House and Senate in recent days,
talks continue between top administration officials and congressional
tax writers on a compromise plan.

Treasury Secretary Tim Geithner and White House budget director
Jack Lew have been negotiating with Democratic senator Max Baucus,
Republican senator Jon Kyl, Democratic congressman Chris Van Hollen and
Republican congressman Dave Camp.

There has been widespread speculation that the final agreement will
call for a two- or three-year extension of all Bush era tax cuts and an
extension of unemployment insurance benefits.

These talks are also expected to deal with spending bills for the
2011. A stop-gap spending bill expires Dec. 18. The 2001 fiscal year
began Oct. 1.

During the two-hour debate Saturday on the Bush tax cuts, both
parties stuck closely to their often repeated talking points.

Baucus said the nation can’t afford the full extension of the Bush
era tax cuts, an action that would require the U.S. to borrow nearly $4
trillion over the next decade to pay for them.

“We have to make choices. We need to keep an eye on the debt,”
Baucus said.

Senate Majority Whip Dick Durbin noted that a high-level deficit
reduction panel considered a $4 trillion deficit reduction plan Friday
that many members said was too draconian.

“All of the pain that would be inflicted on the American people (by
that plan) would be completely wiped away by the Republican tax cut
proposal,” he said.

Senate Minority Leader Mitch McConnell said it would be unwise
economic policy to increase anyone’s taxes in a weak economy. He said
the two Democratic plans before the Senate would impose “massive tax
hikes” on the job creating segment of the American economy.

Sen. Chuck Grassley, the ranking Republican on the Finance
Committee, cited Friday’s weak employment report and said “quite
obviously we’re still in a recession.”

He also said this would be the wrong time to raise taxes on anyone.

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

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