–House Majority Leader: Sees ‘Possible Changes’ In Bill Senate Passes
–‘There Are A Lot of Things’ In Senate Bill Dems Like
–House Dems May Try To Adjust Estate Tax Provisions
–‘Tax Reform Is Essential’ In Next Congress

By John Shaw

WASHINGTON (MNI) – House Majority Leader Steny Hoyer predicted
Monday that 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 on the House Democratic agenda in the next Congress
at the National Press Club, 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.

“There are a lot things in this (the Senate version) bill we want
to get passed,” he said, citing the measures extension of unemployment
insurance benefits and the reduction in payroll taxes in 2011,

Hoyer said one area that House Democrats would like to address is
the Senate bill’s estate tax provision.

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

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.

Hoyer said the legislative process requires “give and take,” and
added “I think that is going to occur.”

But Hoyer stopped short of saying that House Democrats will alter
the bill in a fundamental way, thus derailing it.

“There is a compromise available,” he said.

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.

The House approved last week a stop-gap spending bill that would
fund the federal government for the rest of the 2011 fiscal year.

The $1.1 trillion bill was approved by the House on a 212 to 206
vote. The bill is now before the Senate where it faces an uncertain
fate.

Several Senate Republicans have said they prefer a stop-gap bill
that only runs until February rather than a measure that funds
government for the rest of the FY’11 fiscal year.

The current stop-gap spending bill funding the government extends
until Saturday. None of the 12 regular spending bills have been yet
passed by Congress for the fiscal year that began Oct. 1.

On another matter, Hoyer said that he hopes that fundamental tax
reform is on the congressional agenda, arguing that a tax overhaul is
needed to bolster economic growth and tackle the federal budget deficit.

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

[TOPICS: M$U$$$,MFU$$$,MCU$$$]