–After Hill Test Votes Fail, Admin Moves Toward Deal With GOP On Taxes
–Admin, Hill Likely To Agree On Deal Linking Tax Cuts, UI Extension
–Senate Banking Panel To Hold Wed Hearing With Schapiro, Gensler

By John Shaw

WASHINGTON (MNI) – Having held tax-cut test votes last week and
over the weekend in the House and Senate, congressional leaders and
administration officials have indicated they want to reach an agreement
this week that would likely extend all of the Bush era tax cuts for
several years as well as extend unemployment insurance benefits.

Senate Majority Leader Harry Reid said Saturday on the Senate floor
that he hopes a tax-cut agreement could be reached by Thursday, clearing
the way for House and Senate votes probably next week.

Reid also said that he wants Congress to end its work for the year
at the end of next week, Dec. 17.

“That’s the plan,” Reid said.

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

The package is likely to include a host of other expiring tax cuts
and adjustments to the AMT and estate tax.

This deal is likely to be developed in talks involving Treasury
Secretary Tim Geithner, White House budget director Jack Lew and
Democratic Sen. Max Baucus, Republican senator Jon Kyl, Democratic
Congressman Chris Van Hollen and Republican Congressman Dave Camp.

These talks are also expected to deal with spending bills for the
2011. A stop-gap spending bill funding the federal government expires
Dec. 18. The 2011 fiscal year began Oct. 1 and none of the 12 annual
spending bills for FY’11 have been approved.

If tax and spending agreements are reached this week, House and
Senate votes seem likely for next week.

In addition to work on a tax cut package and a broad spending bill
for FY’11, the Senate Banking Committee will hold a hearing Tuesday
afternoon at 2:30 p.m. on the state of the credit union industry.

Also, a subcommittee of the Senate Banking Committee will hold a
hearing Wednesday at 2 p.m. on the current state of U.S. capital
markets. Mary Schapiro, chairwoman of the SEC, and Gary Gensler,
chairman of the CFTC, are scheduled to testify as are private sector
representatives.

The House Financial Services Committee will hold a hearing Wednesday
at 10 a.m. on simplifying SEC registration

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

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