U.S. Senate Advances Extension for Bush-Era Income Tax Cuts

The U.S. Senate advanced President Barack Obama’s $858 billion agreement with Republicans to extend all Bush-era income-tax cuts, setting up a vote on final passage as soon as tomorrow.

The 83-15 vote, nfl jerseys with 60 needed, had support from members of both political parties including many Democrats. Senators who frequently disagree on fiscal issues, such as Democrat Robert Menendez of New Jersey and Republican leader Mitch McConnell of Kentucky, voted to advance the bill.

The vote was held open for several hours to allow lawmakers time to return to Washington.

Obama, speaking Atlanta Falcons Jerseyat the White House during the vote, congratulated the Senate on moving forward, saying the “bill does some very good things” for the economy. He urged the House to act quickly, saying “the nature of compromise” is “sacrificing something that each of us cares about to move forward on what matters to all of us.”

Treasury Secretary Timothy Geithner said in a statement that provisions Obama sought to include in the bill “are those with the greatest capacity to put more Americans back to work and strengthen the recovery.”

The legislation would extend all expiring income-tax reductions through 2012, cut payroll taxes by 2 percentage points during 2011 and extend expanded unemployment benefits through 2011. It would let companies write off 100 percent of their capital investments through 2011 and would revive dozens of business tax breaks that expired in 2009.

‘Critical Provisions’

“If we fail toCincinnati Bengals Jersey extend these critical provisions, we place our economy at risk,” said Montana Senator Max Baucus, the Democratic chairman of the tax-writing Finance Committee. “If we fail to act, we place middle-class families at risk. Plain and simple, this bipartisan compromise is about creating jobs.”

Democrats voting no were Jeff Bingaman of New Mexico, Sherrod Brown of Ohio, Russell Feingold of Wisconsin, Kirsten Gillibrand of New York, Kay Hagan of North Carolina, Frank Lautenberg of New Jersey, Patrick Leahy of Vermont, Carl Levin of Michigan, and Mark Udall of Colorado. Senator Bernard Sanders of Vermont, an independent who caucuses with the Democrats and spoke for more than eight hours on the Senate floor Dec. 10 against the bill, also voted no.

Republican Buffalo Bills Jersey Senators John Ensign of Nevada, Tom Coburn of Oklahoma, George Voinovich of Ohio, Jim DeMint of South Carolina and Jeff Sessions of Alabama voted no. Democrats Ron Wyden and Jeff Merkley of Oregon didn’t vote.

Tax-Cut Extensions

After Senate passageJay Cutler Jersey the measure would head to the House, where it faces a less certain outcome in part because many Democrats oppose a provision to set the lowest federal estate tax in 80 years.

House Democratic leaders, who weren’t involved in final negotiations that led to the agreement Obama announced Dec. 6, say they oppose the bill without changes. They said they will determine whether to make changes.

“I think we’Brian Urlacher Jerseyll pass a bill, as opposed to simply not passing anything,” House Majority Leader Steny Hoyer of Maryland said today at the National Press Club in Washington. He said he expects the House to complete its work for the year by Dec. 17.

Many House Democrats argue against extending the tax cuts enacted in 2001 and 2003 for annual income exceeding $200,000 for individuals and $250,000 for married couples, a provision Obama had opposed.

Estate Tax

A number of HouseWalter Payton JerseyDemocrats also oppose the measure’s estate-tax provision, which would set a top tax rate of 35 percent, to be applied after an individual exemption of $5 million, through 2012. Last year, the House voted to create a $3.5 million exemption and a 45 percent top rate.

There was no estate tax this year, although it was replaced by a capital-gains tax on sales of some inherited assets. Without any change in law, the exemption will be $1 million on Jan. 1 and the top rate will be 55 percent.

Any changes made byGale Sayers Jerseythe House would require another Senate vote, and Senate Republicans who negotiated with the Obama administration said such changes would endanger the agreement.

Some Democratic senators expressed complaints about the estate tax and the tax cuts for high-income taxpayers. Other Democrats, including Senators John Kerry of Massachusetts and Kent Conrad of North Dakota, said they agreed with Obama that the measure, though imperfect, represents the best possible outcome because of the impending expiration of tax cuts and a shift to Republican control of the House in January.