–Senate Majorityy Leader: Working To Set Up Vote on $35 Billion Plan
–Sen. Reid: Hopes Deficit Committee Can Do ‘Some Good Things’ On Taxes
–Senate Minority Leader McConnell: Obama’s Jobs Agenda Has ‘Failed’
–Sen. McConnell: ‘Bipartisan Agreement’ On Need For Tax Reform

By John Shaw

WASHINGTON (MNI) – Senate Majority Leader Harry Reid and Senate
Minority Leader Mitch McConnell skirmished Tuesday over the possibility
of the Senate taking up parts of President Obama’s $447 billion jobs
package, with Reid said the Senate will consider “pieces” of it while
McConnell argued that most of the president’s economic growth ideas are
misguided.

In back-to-back briefings after Senate policy lunches, Reid and
McConnell appeared to signal that the fight over jobs legislation is
likely to extend all year.

Reid said that as a first step the Senate should pass a $35 billion
package that would allow states and local governments to avoid lay offs
for teachers and first responders.

Reid said the funds would help prevent up to 400,000 layoffs among
teachers and first responders across the nation.

The package Reid proposed would be funded by a 0.5% surtax on
household income above $1 million. This is a scaled-back version of the
5.6% surtax that Democrats proposed earlier to pay for President Obama’s
$447 billion jobs plan that was rejected last week.

“The American people agree with us overwhelmingly,” he said,
referring to support for a tax increase on millionaires to fund jobs
programs.

Reid said he is not certain when the Senate will vote on the
scaled- back jobs plan. “We have a number of alternatives,” Reid said.

He added that he would like to work out an arrangement with Senate
Republicans on jobs legislation. “We’re trying to work together,” he
said.

But in his comments to reporters, Minority Leader Mitch McConnell
was scornful of Reid’s proposal, particularly the surtax on
millionaires.

“We’ve already had this vote twice,” he said, referring to
procedural votes on jobs legislation last week.

He said this was a “different iteration” of the same idea and said
the proposed tax hike would hit more than 300,000 individuals and small
businesses.

He said the federal government doesn’t have the money to
“supplement” state finances to pay for teachers and first responders.

“This is the worst possible way to encourage economic growth and
job creation,” McConnell said of the proposed tax hike.

McConnell continued to heap scorn on Obama’s approach to job
creation. “We’ve already done this. We tried it. It failed,” he said.

While the two Senate leaders are divided on jobs legislation, both
seem in accord about the need for tax reform.

McConnell said there is a “bipartisan agreement” on the need for
comprehensive tax reform. “It’s been 25 years since we tried to bring
some rationality to the code,” McConnell said.

Reid said that he hopes that Congress’s deficit reduction committee
“does some good things” regarding tax reform.

“Our tax system is broken and needs to be fixed,” Reid said.

Congress’s deficit reduction committee is charged to submit a $1.5
trillion deficit reduction package by Nov. 23.

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

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