–Senate Democrats To Confer Thursday Afternoon To Ponder Tax Cut Plan
–Senate Dems Might Prefer To Focus on Bill To Block Outsourcing Of Jobs

By John Shaw

WASHINGTON (MNI) – Senate Democrats will meet Thursday afternoon to
discuss when they should schedule votes on the Bush tax cuts amidst
growing signs that they are inclined to defer the issue until after the
election.

Senate Majority Leader Harry Reid has been saying that the Senate
would take up tax cut legislation before it leaves for the election.

But there are growing signs that both the House and Senate may end
their fall sessions at the end of next week, returning to Washington
after the elections for a lame duck session of uncertain length.

There are also growing signs that the debate over the fate of the
Bush era tax cuts might be deferred until after the Nov. 2 elections.

Senate Minority Whip Dick Durbin told reporters Wednesday that it
would be “difficult” to schedule a vote on tax-cut legislation “because
of the short timetable.”

Senate Finance Committee Chairman Max Baucus has been developing a
bill to extend tax cuts for individuals making up to $200,000 and
couples earning up to $250,000. He may also seek to extend the expired
estate tax.

Baucus has said he would like the Senate to vote on the plan soon.
“We have to vote before the election to show people where we are. It’s
the right thing to do,” Baucus said earlier this week.

But Baucus later said that it might be difficult to set up a vote
because lawmakers “want to leave by next week.”

Senate Minority Leader Mitch McConnell has indicated that he would
like a far-reaching debate on tax issues with votes on a number of
amendments. This could not occur over a week. Many relatively minor tax
bills often take weeks in the Senate, so it is highly unlikely the issue
could be resolved on an expedited schedule.

It is possible that Senate Democratic leaders next week could make
a motion to pass the middle class portion of the Bush tax cuts and that
McConnell would object.

Then McConnell would likely make a counter motion, calling for
passage of the entire array of Bush era tax cuts which Reid would object
to.

Under this scenario, the tax debate would end in a stalemate this
fall and be resolved after the Nov. 2 elections.

The Obama administration and congressional Democrats have
repeatedly said that tax cuts for individuals making up to $200,000 and
couples earning up to $250,000 should be extended.

Congressional Republican leaders have supported extending all of
the 2001 and 2003 tax cuts.

House Democratic leaders have said they will wait for the Senate to
act before deciding on how they to deal with the tax cut issue.

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

[TOPICS: M$U$$$,MFU$$$,MCU$$$]