The Washington Post reports the major points of the bill Senate Democrats (one assumes mainly Senate Finance Chair Baucus) are putting together on the major tax issues. The article states the following:
Senate Democrats are assembling a bill that would permanently extend tax cuts for the income thresholds Obama proposed; permanently set the estate tax at 2009 levels; and limit the number of people hit by the alternative minimum tax through 2011. Democratic aides said such a bill would increase deficits by about $1.9 trillion over the next 10 years, compared with the nearly $4 trillion bill McConnell has proposed.
This author briefly was an aide to a U. S. Senator in the mid 70’s. Getting legislation passed now is no different from then. What Baucus is surely doing is his aides are finding out what needs to be put in the bill to get all of the Democratic senators and a couple of Republican senators to accept it. Because the cost is half of the reported $3.9 trillion to make the Bush tax cuts permanent and fixes the AMT for a couple of years, surely it only extend the tax cuts for the middle class for only a few years. This is likely needed to get the vote of Republican Senator Voinovich who has stated he believes the tax cuts should not be extended for anyone.
This author continues to believe Baucus will design a bill that will pass and will pass before the election.
By Kevin Staker