–Senate Sets Votes On Three Amendments Before Final Passage
–Senate Expected To Clear Bill By Healthy Margin In Senate
–Senate Votes To Begin At Noon on Wednesday

By John Shaw

WASHINGTON (MNI) – The Senate will cast its final votes Wednesday
afternoon on the $858 billion tax cut and spending package that was
negotiated by President Obama and congressional Republican leaders.

The bill, based on the strong support it received on a procedural
vote Monday, is expected to pass easily, sending it to the House for its
consideration

The Senate will begin voting at noon on Wednesday and is likely to
have completed its votes by around 2 p.m.

Before moving to final passage, the Senate will vote on three
motions that are likely to fail: a motion by Republican senator Tom
Coburn to require that the unemployment benefits be offset with other
spending cuts, a motion by Republican senator Jim Demint that would
permanently extend the bill’s estate tax and AMT provisions and a motion
by independent senator Bernie Sanders to only extend middle class tax
cuts.

After these three votes, the Senate will move to final passage on
the bill.

The Senate bill is based on the agreement that President Obama
reached with Republican leaders last week. It extends all of the Bush
era tax cuts for two years and extends unemployment insurance benefits
for 13 months. It includes the extension of a host of expiring or
expired tax credits, including business tax expensing provisions that
are designed to spur growth.

The agreement provides for a 2 percentage point reduction in the
employee share of payroll taxes in 2011.

The agreement also sets the estate tax at 35% above a $5 million
per person threshold.

If the Senate passes the bill Wednesday, the measure will be sent
to the House.

House Majority Leader Steny Hoyer said Tuesday that there is an
“urgency” in completing work on the tax legislation this week. Hoyer
said there are provisions that Democrats don’t like, but appeared to
signal that there will not be a vigorous effort to rewrite the bill.

Congress still must pass a measure to fund the government by the
end of the week. The current stop-gap spending bill, which is funding
the government, expires Saturday.

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

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