–Senate Majority Leader: Considering ‘Some Changes’ To Tax Accord
–Sen Reid: ‘Have To Work On’ Final Details of Tax Package
–Sen Reid: ‘Better’ To Hike Debt Ceiling Next Year
–Sen Kyl: Main Elements of Tax Bill Are ‘Resolved’

By John Shaw

WASHINGTON (MNI) – Senate Majority Leader Harry Reid said Wednesday
the Senate could take up the tax agreement that was largely written
by President Obama and Senate Republicans in “the next day or two,” but
added that “some changes” are still being made to the package.

In comments to reporters after a Senate Democratic meeting, Reid
said it is time for Congress to begin moving the tax bill soon, but also
noted that adjustments need to be made.

“It’s something we have to work on,” he said.

Reid would not discuss what aspects of the package need to
adjusted.

Reid said Congress also needs to pass a funding bill for the 2011
fiscal year and several other items.

Reid said he believes it would be “better” for Congress to take up
legislation increasing the statutory debt ceiling next year because
Republican control of the House would require GOP “buy in.”

Debt ceiling legislation is expected to be needed by the spring.

Senate Minority Whip, Sen. Jon Kyl, speaking moments before Reid,
had a slightly different assessment of the tax package but made the
same central points.

“The deal is resolved,” Kyl said of the tax and spending package,
but then added there are “still some outstanding issues” that he
described as mostly technical.

Kyl said the Senate could take up the measure as early as Thursday.

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

Democrats have said this provision would cost $68 billion a year
and would affect only 39,000 estates in the U.S. and have no impact on
economic growth.

Some Democrats have been pressing for an estate tax provision that
would set a 35% tax on estates of $3.5 million or more. Another version
would set it at 45%.

Vice President Obama is traveling to Capitol Hill in an hour or so
to sell the plan to restive House Democrats.

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

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