Senatee set to advance Obama tax cuts package
The House could consider the compromise legislation by midweek. Congress' failure to pass the proposal by Friday would mean higher taxes for nearly every U.S. taxpayer.
Washington —
President Obama's tax cuts proposal appeared ready to cross its first major hurdle Monday, as the Senate was set to advance the $848-billion package, a victory for the White House that puts pressure now on reluctant House Democrats to accept the compromise plan.
After more than one hour of voting, more than 60 senators had voted to move the legislation forward, while a half-dozen voted no. Senate leaders were expected to hold the vote open for another hour to allow senators facing weather-related travel delays more time to vote.
The Senate could send the tax breaks package to the House by midweek. The package extends expiring tax breaks passed during the administration of President George W. Bush, but House Democrats believe it favors the wealthy and have vowed to amend what they see as a too-generous estate tax provision.
So far, the vote in the Senate drew support from both Democrats and Republicans. Most of the senators voting no as of 4 p.m. EST were Democrats.
The Bush-era income tax cuts are set to expire on Dec. 31, and Congress' failure to act before adjourning Friday for the holidays would lead to a tax hike on nearly every American taxpayer.
As the legislation appears on track to clear the Senate, House Democrats now must decide whether they are willing to fight to change the package in the remaining days of this Congress.
Republicans have cautioned their support is tenuous, and altering the package now — especially by bolstering the estate tax — risks disassembling the coalition of Republicans and Democrats that supports it.
The package extends for two years the expiring Bush-era tax breaks on families at all income levels, including those earning incomes beyond $250,000 that Obama once campaigned against.
It also extends unemployment insurance through 2011 for jobless Americans, including 1 million whose benefits have expired in the last two weeks. The package also includes a new, 2% payroll tax reduction for all workers, up to $2,000, and it extends energy and other tax breaks expiring this year. |
