WASHINGTON (MNI) – The following are items of interest Friday
relating to the pending congressional vote on whether to extend Bush era
tax cuts and to the deficit:

* President Obama Friday said he’s still confident the House
will eventually pass the tax-cut deal as the Senate is expected to do.
“At the end of the day, people are going to conclude we don’t want 2
million people suddenly without unemployment insurance and not able to
pay their rent, not able to pay their mortgage,” he told NPR. “I’m
confident we’re going to be able to get this resolved by the end of the
month.”

* The U.S. Senate Thursday night formally began consideration of
the tax package negotiated by President Obama and congressional
Republican leaders, scheduling 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. Ending a filibuster by Vermont’s Bernie Sanders will take 60
votes. Once that occurs, as is expected, the bill — with some added
extentions for alternative fuel subsidies, goes to the House.

* Exactly how the House of Representatives goes forward once the
Senate delivers its version of the tax-cut bill is still not settled.
House Speaker Nancy Pelosi, who traveled to Norway to witness the day’s
award of the Nobel Peace Prize, said Thursday that Democrats are trying
“to improve the proposal before it comes to a House vote.” The
Democratic caucus made clear Thursday its intent to modify the package
when it voted to reject the current version. Key priorities for change
appear to be raising the estate tax rate and lowering its exemption, and
adding back in a Build America Bonds subsidy left out by the Senate. It
appears not out of the question more than one House vote might be
necessary to gain passage, as Republicans making up any shortfall of
Democratic votes and lingering Democratic opposition likely diminishing
after modifications. So both the House and Senate may dispose of the
issue next week.

* Some pushback against the tax-cut deal’s one-year payroll tax
holiday appeared to be growing among groups and bloggers defending
Social Security, which is funded by the payroll tax. General revenues
would replace the payroll tax’s shortfalls but B’Nai B’rith
International Friday said “jump-starting the economy has nothing to do
with Social Security and will create an unacceptable risk to an
essential program.” The group said that congressional “temporary” fixes
“have a way of becoming permanent.

* Another Tea Party favorite, Minnesota Republican Congresswoman
Michelle Bachmann, expressed opposition to the tax pact, telling CNN
Friday that it fell short on several counts, particularly in its
extension of special unemployment benefits. Wednesday Sen. Jim DeMint
told a talk show interviewer he still felt the tax cuts should be
permanent and he had earlier threatened to filibuster the agreement.

* U.S. Treasury Secretary Tim Geithner’s kidney stone
hospitalization and treatment will keep his support of the tax-cut deal
off the airways over the weekend. He had been scheduled to do all three
major network public affairs talk shows Sunday.

* In worldwide credit markets Friday, yields continued to rise
for Spanish debt but the U.S. Treasuries market has been supported by
overnight Asian buying.

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

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