–Key Senator Says Many Dems Prefer $1 Million Threshold For Tax Extend
–Sen Schumer: White House ‘Prefers’ $250,000 Threshold
–Sen. Schumer: Bush Tax Cuts ‘Failed’ To Boost Econ, Create Jobs

By John Shaw

WASHINGTON (MNI) – Sen. Chuck Schumer, the third ranking Senate
Democrat, said Friday that the Senate’s two votes on tax-cut plans
Saturday should clarify the positions of both parties and give impetus
to an agreement.

At a briefing, Schumer said most Democrats prefer a permanent
extension to all middle class tax cuts, perhaps up to a $1 million
threshold, rather than a temporary extension of all Bush era tax cuts.

Schumer said the decade-long history of the Bush tax cuts is one of
clear “failure” to generate economic growth or produce jobs.

“Why would we go back to a failed policy?” he said.

The Senate has scheduled votes Saturday at 10:30 a.m. to end debate
on two Democratic tax proposals.

The first vote will be 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 second vote will be on alternative by Schumer which would
extend Bush era tax cuts to those making under $1 million.

Ending Senate debate on either plan would require 60 votes. This is
not expected to happen.

“The White House prefers $250,000,” Schumer said, but added that he
thinks his idea of a $1 million threshold could attract broad support.

Schumer said Democratic leaders will review their tax cut options
after the Senate votes on Saturday. He accused Republicans of blocking
the extension of middle class tax cuts. Republican leaders back the
extension of all Bush era tax cuts.

The House approved Thursday a $1.5 trillion tax cut package that
extends the middle class portions of the Bush era tax cuts and includes
an adjustment to the alternative minimum tax.

The House vote was 234 to 188.

The vote was mostly partisan. All Democrats but 20 voted for the
bill. All Republicans opposed the measure except for three.

As Democrats hold these test votes in the House and Senate, talks
continue between top administration officials and congressional tax
writers on a compromise.

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.

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

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