–House Majority Leader: ‘Not A Time’ To Hike Taxes on ‘Working’ People
–Rep. Hoyer: Need ‘No Decision’ Yet On How To Deal With Tax Cuts
–Rep. Hoyer: Must Pass War Spending Bill, Tax Extenders Package

By John Shaw

WASHINGTON (MNI) – House Majority Leader Steny Hoyer said Tuesday
Democrats have not yet decided how they will deal with a host of tax
cuts that were passed in 2001 and 2003 and are set to expire at the end
of the year.

At a briefing, Hoyer said “no decision has been made on exactly
what to do” with the expiring tax cuts from 2001 and 2003.

But Hoyer indicated that those tax cuts that go to middle and low
income workers will be renewed.

“This is not a time to increase taxes on working Americans,” Hoyer
said.

Hoyer said that the tax debate this year must find a way to deal
with the estate tax which he said is in “limbo.”

Hoyer said that the House will soon take up emergency spending bill
which funds the wars in Iraq and Afghanistan and a host of domestic
needs.

“We need to move that … before the July Fourth break,” Hoyer said
of the emergency spending bill.

House Democratic leaders are trying to determine when and how they
should pass an $84 billion emergency spending bill, which includes $33
billion for the wars in Afghanistan and Iraq and $23 billion to prevent
a wave of teacher layoffs.

The Senate approved a $59 billion emergency bill last month which
did not have the teacher funding.

Hoyer said he is also trying to “figure out” a way to pass a tax
cut and benefit extension package. The House recently passed its version
of the bill, but Senate Democrats failed last week to secure the 60
votes needed to pass a $115 billion package.

The underlying package would extend about a dozen tax cuts that
expired at the end of last year, expand unemployment benefits, and
provide an extension of current Medicare payments for doctors, the
so-called “doc fix.”

The Senate Friday passed a six-month extension of the doc
fix, sending it to the House for its consideration.

Hoyer called the six-month extension a “band aid at best.”

Finally, Hoyer said the House will pass “some” of the 12 annual
spending bills for the 2011 fiscal year in July. He declined to say
which of the bills will be considered.

Congressional Democratic leaders have been deadlocked for months on
whether they should attempt to pass the annual budget resolution which
sets five year spending and revenue goals and makes deficit estimates.

Congress is required by law by pass annual budget resolutions by
April 15, but this deadline is rarely met.

In addition to setting broad fiscal goals, a budget resolution sets
a ceiling on discretionary spending for the coming year which then
triggers work on the 12 annual spending bills that fund discretionary
programs.

Congress could pass a resolution that “deems” the budget is passed,
thus setting a ceiling on discretionary spending to allow work to
advance on the 12 FY’11 appropriations bills.

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

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