–Senate Democrat’s $140 Billion Package Fails To Secure 60 Votes Weds
–Senate Majority Leader Convenes Democrats To Rethink Tax Bill
By John Shaw
WASHINGTON (MNI) – Senate Majority Leader Harry Reid and Senate
Finance Committee Chairman Max Baucus are trying to redraft their $140
billion tax cut and benefit expansion bill Wednesday, after it failed to
secure the 60 votes required to move the bill forward.
The Senate voted 45 to 52 to waive a budget point of order
Wednesday, falling well short of the 60 votes that were required to move
forward with the bill.
Last week, Reid and Baucus made various changes to the $113 billion
package of tax cuts and benefit extensions that the House passed several
weeks ago.
These changes included adding $24 billion for federal assistance to
states to help them pay for Medicaid program.
Senate Democrats also eased a tax hike on the carried interest
earned by venture capitalists, real estate investors and private equity
managers.
Under the House bill, 25% of carried interest would be treated as
capital gains, as it is now, and 75% would be taxed as ordinary income,
which is taxed at a higher rate. The Senate bill would change that ratio
to 35-65 or, for assets held for more than seven years, 45-55.
Reid and Baucus are expected to trim back the bill’s $140 billion
cost and adding some new offsets.
Senate Republicans have said the bill is too costly and would
increase the budget deficit by $79 billion over a decade.
The underlying bill would extend about a dozen tax cuts that
expired at the end of last year, expand unemployment benefits, and
provide a 19 month extension of current Medicare payments for doctors,
the so-called “doc fix.”
** Market News International Washington Bureau: (202) 371-2121 **
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