–Senate Majority Leader Says Tax Extenders Package is ‘Good Jobs Bill’
–Sen. Reid: ‘Important’ To Include Cobra Subsidies In Final Bill
–Senate Minority Leader McConnell Says Extenders Bill Should Be Offset
–Sen. McConnell: Must ‘Figure Out A Way To Pay For This Bill’

By John Shaw

WASHINGTON (MNI) – Senate Majority Leader Harry Reid said Tuesday
that the Senate will make “some” adjustments to the $113 billion package
of tax cuts and benefit extensions that the House passed several weeks
ago.

The Senate is now considering that tax and benefits legislation.

In comments to reporters after a Democratic policy luncheon, Reid
said the Senate will make “very few changes to the House bill,” adding
that he believes the House will approve the Senate modifications to its
package.

The overall plan, Reid said, is a “good jobs bill.”

The package passed by the House two weeks ago 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.” The package would add about $54
billion to the deficit over a decade.

One of the changes the Senate will make to the House-passed bill is
to increase Medicaid assistance to state governments.

A second modification will be to ease 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 said that he would personally support an amendment to give a
health insurance premium subsidy for unemployed workers under the COBRA
program, a provision that was removed from the final version of the
House bill because of its cost.

“Of course it’s important,” Reid said of the COBRA subsidy.

Speaking before Reid, Senate Minority Leader Mitch McConnell said
that Republicans are worried about the deficit-increasing impact of the
overall package.

“There is a growing feeling … that these kind of packages ought
to be paid for,” McConnell said.

It is important, McConnell said, to “figure out a way to pay for
this bill.”

McConnell said he opposes a provision in the bill to increase the
tax on oil companies by 26 cents per barrel to help pay for the overall
bill.

He said the tax hike, if retained, should be allocated for the oil
clean up trust fund, its intended purpose.

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

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