–House Majority Leader: Deal Was Between Obama, Senate GOP
–‘Not Appropriate’ To Extend Bush Tax Cuts For Wealthy
–House Will ‘See What the Senate Does’ On Accord
–‘Not Happy’ With Estate Tax Provisions In Deal
–Will Be ‘Difficult’ To Sell Accord To House Dems

By John Shaw

WASHINGTON (MNI) – House Majority Leader Steny Hoyer Tuesday damned
the tax cut agreement that President Obama announced last night with the
faintest of praise.

At a briefing, Hoyer offered a remarkably tepid assessment of the
tax agreement that Obama declared Monday evening, beginning with the
assertion that the agreement was between Obama and Senate Republicans
and did not involve congressional Democrats.

Under repeated questions about the agreement, Hoyer declined to
endorse the package. He said he will review its details with fellow
House Democrats later in the day and then decide if he can support the
plan.

He blasted Republicans for “holding hostage” the middle class tax
cuts that Democrats have long supported, adding that the president
“confronted” very difficult circumstances regarding tax policy when he
entered talks with Republicans.

Hoyer said the middle class tax cuts and the extension of
unemployment benefits are positive features in the accord. He also
praised the 2 percentage point reduction in payroll taxes for employees
in 2011 as “very, very significant.”

But he blasted the agreement’s provisions on setting the estate tax
at 35% with an exemption level of $5 million and below.

“I’m not happy with the estate tax” provisions, he said, adding it
would “cost substantial dollars.”

Hoyer said it is “not appropriate” to extend the Bush era tax
cuts for the wealthy as the agreement does.

“I don’t like some of the things in it,” he said, referring to the
overall package.

Hoyer said he expects the Senate to take up the agreement first and
added the House will “see what the Senate does” before moving forward
with the bill.

In remarks to reporters after the Hoyer briefing, House Democratic
conference chairman John Larson said it will be “difficult” to sell the
agreement to House Democrats.

Obama announced Monday evening the “framework of a bipartisan
agreement” with congressional leaders which would extend all of the Bush
era tax cuts for two years and extend unemployment insurance benefits
for 13 months.

Obama said the agreement included a 2 percentage point reduction in
the employee share of payroll taxes in 2011. This, he said, would be
“one of the most powerful things we can do to create jobs and boost
economic growth.”

On another matter, Hoyer said the House will also vote this week on
a “long term” stop-gap spending bill that funds the federal government.
The current stop-gap bill funds the government until Dec. 18.

He did not say how long that stop-gap spending bill will run.

None of the 12 regular spending bills for the 2011 fiscal year have
been passed by Congress. The 2011 fiscal year began on Oct. 1.

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

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