–Senate Passes 60 Vote Hurdle To End Debate By Huge Margin
–Senate Likely To Pass Tax Cut Bill Tuesday or Wednesday

By John Shaw

WASHINGTON (MNI) – The Senate soared over a procedural hurdle
Monday, voting 83 to 15 to end the debate on the $858 billion tax cut
and spending package that was negotiated by President Obama and
congressional Republican leaders.

The procedural vote, which began at 3 p.m., was held open until
about 6:30 p.m. as senators return to Washington from weekend travel.

The Senate’s vote Monday was to formally end the debate on the tax
cut and spending bill bill.

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

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 a critical 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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