–Senate Passes 60-Vote Hurdle To End Debate
–Senate Likely To Pass Tax-Cut Bill By Tuesday or Wednesday
–House Democratic Leaders Take More Conciliatory Approach To Bill

By John Shaw

WASHINGTON (MNI) – The Senate Monday easily secured the 60
votes needed to end debate on the $858 billion tax cut and spending
package that was negotiated by President Obama and congressional
Republican leaders.

The Senate is still completing the key procedural vote but more
than 65 senators have voted to end the debate.

The procedural vote, which began at 3 p.m., is being held open as
senators return to Washington from weekend travel.

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

Ending the debate required 60 votes. Now the 60 votes are secured,
the Senate could 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

The inclusion of a renewable energy grant program and a one year
extension of subsidies for the ethanol industry is likely to ease the
concerns of some House Democrats.

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.

During a speech, Hoyer said House Democrats may try to alter some
provisions in the Senate tax bill.

But his remarks were conciliatory and appeared to signal that House
Democratic leaders want to get the tax issue resolved this 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.

Hoyer said that both House and Senate leaders want Congress to
complete their work for the year by Friday. Doing so, he said, requires
action on the tax bill as well as a spending bill for the 2011 fiscal
year.

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

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