–Senate Republican Leader Selects Sen. Kyl To Join Tax-Cut Talks
–Sen. Kyl: Must Focus First On Bush Tax Cuts, Then Estate Tax, AMT
–Sen. Kyl: ‘We Are Going To Discuss Everything’

By John Shaw

WASHINGTON (MNI) – Senate Minority Leader Mitch McConnell said
Tuesday that Congress must “first resolve” the fate of the Bush tax cuts
and a fund bill for the 2011 fiscal year in the Lame Duck session,
before taking up any other matters.

In a briefing after a Senate Republican policy luncheon, McConnell
said that he is appointing his deputy, Sen. Jon Kyl, to represent Senate
Republicans in the coming tax talks with the White House.

Four congressional representatives — a House Democrat and a House
Republican and a Senate Democrat and a Senate Republican — will
negotiate the tax cut issue with Treasury Secretary Tim Geithner and
White House budget director Jack Lew.

House Republican leader John Boehner has appointed Rep. David Camp,
the incoming chairman of the House Ways and Means Committee, to
represent House Republicans.

Congressional Democratic leaders have not yet designated their
representatives to the talks.

Kyl said his top priority will be to push for the extension of all
the Bush era tax cuts. Once this is agreed to, the tax package could
include adjustments to the estate tax, the AMT, the tax extenders and
possibly other matters, Kyl said.

“We are going to discuss everything,” he said.

But he added that extending the Bush tax cuts is his central
priority. “First things first,” he said.

Kyl said a bipartisan agreement on taxes “just might be possible.”

It remains unclear what the stance of congressional Democratic
leaders will be toward the tax talks.

House Democratic leaders had been preparing to hold a vote later
this week on a bill to extend the Bush era tax cuts only for those
individuals making $200,000 or less and couples making $250,000 or less.

And Senate Majority Leader Harry Reid had said that he wanted the
Senate to hold “some votes” on alternative tax cut packages in the
coming weeks.

It is unclear if these votes will take place given the tax cut
negotiations that are now set to begin between the administration and
Congress.

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

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