–Senate Majority Leader Says Debate Time Expires At Midnight
–Sen. Reid: Senate In ‘Final Stage’ of Tax Cut Debate
–Senate Cleared Key Procedural Hurdle Monday on 83 to 15 Vote

By John Shaw

WASHINGTON (MNI) – Senate Majority Leader Harry Reid said Tuesday
that he does yet not know the “exact schedule” when the Senate will cast
its final votes on the $858 billion tax cut and spending package that
was negotiated by President Obama and congressional Republican leaders.

In a key procedural vote Monday evening, the Senate voted 83 to 15
to formally end the debate on the tax cut and spending bill bill.

Ending the debate required 60 votes. Now that this was achieved,
the Senate still can debate the bill for another 30 hours, delaying the
final Senate vote until Tuesday or Wednesday.

Reid said that the debate time expires at midnight, but the Senate
vote could be held before then or delayed until Wednesday morning.

Before a final Senate vote, Senate leaders may allow for each party
to offer an amendment to the bill, mostly as a way of allowing several
senators a vehicle to express frustration with the package.

The Senate bill reflects the agreement that President Obama
announced 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.

A critical part of the agreement from Obama’s perspective is 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. This is an important component for some
Republicans

If the Senate passes the bill it will be sent to the House for its
consideration.

House Majority Leader Steny Hoyer predicted Monday the House will
pass a tax cut package this week, but may make some changes to the bill
the Senate is expected to approve by mid-week.

“I think we will pass a bill,” he said.

Hoyer said one area that House Democrats would like to address is
the Senate bill’s estate tax provision.

Hoyer noted that the House passed a bill earlier this year that set
the tax at 45% with an exemption for $3.5 million and below. He said
this estate tax version is more fiscally sound than the one in the
Senate bill.

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

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