–Senate Majority Leader Reid Begins To Move Tax Cut Deal In Senate
–Senate To Vote At 3PM Monday To End Debate; Requires 60 Votes
–Unclear How Turmoil Among House Dems Will Affect Tax Bill Progress

By John Shaw

WASHINGTON (MNI) – The U.S. Senate Thursday night formally began
consideration of the tax package that was negotiated by President Obama
and congressional Republican leaders.

Senate leaders scheduled a critical vote Monday afternoon at 3 p.m.
to end debate on the package.

The tax package was offered by Senate Majority Leader Harry Reid
and Senate Minority Leader Mitch McConnell, one of the few bills that
both leaders have co-sponsored in the past two years.

Reid and other Senate Democrats have spoken about the package more
positively in the last 24 hours.

A procedural vote to bring the measure up for consideration passed
65 to 11. A number of senators were not present for the vote Thursday
evening.

After Reid offered a number of procedural motions to begin
consideration of the bill, Bernie Sanders of Vermont began to make his
case for defeating the bill.

Sanders is a fierce opponent of the package and called the bill a
“bad deal” that should be rejected. Sanders has said that he will try to
filibuster the bill.

Ending this filibuster will require 60 votes when the Senate votes
Monday.

If the 60 votes are secured, the final Senate vote on the tax and
spending measure would likely occur early next week, sending the bill to
the House.

The Senate bill reflects the agreement that Obama announced Monday
evening which would extend all of the Bush era tax cuts for two years
and extend unemployment insurance benefits for 13 months.

The package includes the extension of a host of expiring or expired
tax credits, including generous business tax expensing provisions that
are designed to spur growth.

A critical part of the agreement 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. The overall cost of the package is expected to
total about $900 billion over two years.

Fact sheets on the package by congressional leaders still do not
provide detailed explanations or cost estimates for the package.

As the Senate goes forward with the bill, it remains unclear if any
amendments to the package will be allowed.

It is also unclear how House Democrats plan to proceed next week.

House Speaker Nancy Pelosi said Thursday that Democrats are trying
“to improve the proposal before it comes to a House vote.”

In a statement, Pelosi said Democrats will “continue discussions”
with Obama and congressional Democratic and Republican lawmakers as the
package is put in final form.

Pelosi’s statement appears to confirm the view that a House
Democratic non-binding resolution passed Thursday opposing the plan was
intended as a demand to modify the package rather than a threat to
derail it.

Pelosi said Democrats oppose the measure as it is “currently
written,” a clear signal that she would like some adjustments made to
the package but has not ruled out supporting it — or at least bringing
it up for a vote.

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

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