–House Speaker Signals That House Dem Vote Part Of Tax Negotiations
–Will ‘Continue Discussions’ With Obama, Dems, GOP
–Wants To Improve Bill ‘Before’ it Comes To House Vote

By John Shaw

WASHINGTON (MNI) – Apparently concerned by the reaction to a
non-binding symbolic vote in the House Democratic caucus on tax and
spending legislation, House Speaker Nancy Pelosi said Thursday that
Democrats are trying “to improve the proposal before it comes to a House
vote.”

In a statement, Pelosi said Democrats will “continue discussions”
with President Obama and congressional Democratic and Republican
lawmakers as the package is put in final form.

Pelosi’s statement appears to confirm the view that the House
Democratic non-binding resolution was more a statement of frustration on
the tax and spending accord than it was a threat to derail the bill.

She said Democrats oppose the measure as it is “currently written,”
an apparent signal that she would like some adjustments made to the
package that is expected to cost about $900 billion.

As the Democratic vote was occurring, Senate Majority Leader Harry
Reid announced the Senate will take up the tax and spending bill within
the next several hours.

Reid said the Senate will proceed “very quickly” to the tax package
that was largely negotiated by President Obama and congressional
Republican leaders.

Reid said the senators will be given adequate time to review the
bill so they can make a “considered decision” about whether to support
or oppose the bill.

He said that if the Senate takes up the tax accord Thursday
afternoon it could hold a vote Saturday to end debate on the measure.

Several senators have said they will try to filibuster the bill.
Ending this filibuster would require 60 votes.

If the 60 votes were secured, the final Senate vote on the tax and
spending measure would likely occur early next week, sending the bill to
the House.

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.

The package would include extending a host of tax credits,
including generous business tax expensing provisions that should spur
growth. The agreement also includes a 2 percentage point reduction in
the employee share of payroll taxes in 2011.

The agreement sets the estate tax at 35% above a $5 million per
person threshold for two years. The overall cost of the package is
expected to be about $900 billion over two years.

A number of Democratic lawmakers have been sharply critical of the
package’s estate tax provision which imposes a 35% tax on estates only
after reaching a $5 million threshold.

Some Democrats have been pressing for an estate tax provision that
would set a 45% tax on estates of $3.5 million or more.

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

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