–Senate Majority Leader: Tax Package ‘Further Along’ Than Most Realize
–Sen. Reid: Signals Hope Not To Reopen Main Elements of Tax Accord
–House, Senate Dems Continue To Express Deep Concerns About Deal
–Cost Estimates of Tax, Spending Package Move Toward $900 Billion
–House Prepares Vote On Year-Along FY’11 Spending Bill

By John Shaw

WASHINGTON (MNI) – In terse but perhaps telling remarks, Senate
Majority Leader Harry Reid said Wednesday that there is not a “great
deal more work” to be done on the tax and spending package that
President Obama reached with Republican leaders Monday.

In remarks on the Senate floor, Reid said the plan is “further
along” than many realize and said Congress will have to “decide” on the
merits of the plan.

Reid’s comments represent a significant shift from remarks he made
Tuesday afternoon in which he said the package that Obama announced
Monday was only a preliminary agreement.

“This is only a framework,” Reid said Tuesday, adding that, “We’re
working through the issues people (senators) have.”

Reid’s most recent comments occur against the backdrop of
considerable Democratic unrest about the tax and spending package whose
two year costs may exceed $900 billion.

“The was unease in the caucus,” House Speaker Nancy Pelosi said
Tuesday evening as she described the reaction of House Democrats to the
tax and spending plan.

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 agreement includes a 2 percentage point reduction in the
employee share of payroll taxes in 2011. It also includes a host of
other tax provisions, including extending the expired estate tax at a
rate of 35% with an exemption level of $5 million.

Congressional Republicans continue to respond to the package in
positive terms.

Senate Minority Leader Mitch McConnell said Tuesday that he is
“pleased” with the tax and spending agreement, adding he is “very
hopeful and optimistic” that Senate Republicans will support the package
when it comes to a vote.

House Minority Whip Eric Cantor said Tuesday that House Republican
leaders will be “working hard” to secure the needed Republican votes to
pass the package.

During the Lame Duck session of Congress, Democrats retain
significant majorities in the House and Senate.

On another matter, the House is expected to vote either Wednesday
or Thursday on a stop-gap spending bill that would fund the federal
government for the rest of the 2011 fiscal year.

The current stop-gap spending bill runs until Dec. 18.

Senate Republicans have signaled that they are not willing to
accept the spending bill and may push for a more limited bill that funds
the federal government until February.

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

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