The Senate Wednesday overwhelmingly approved a massive package of tax cuts and jobless benefits, sending the measure over to the House where disgruntled liberal Democrats are threatening to block the bill when it comes up for consideration Thursday. The Senate voted 81-19 in favor of the legislation, which would cost $858 billion, according to the nonpartisan Congressional Budget Office. While Senate Democrats denounced aspects of the bill, most said they were ultimately willing to vote for it to protect the fragile economy from higher taxes and to reinstate unemployment benefits that expired Nov. 30.
“Middle-class families need a boost in this economy, and that is exactly what this plan gives them,” Senate Majority Leader Harry Reid, D-Nev., said after the vote. “It is not perfect, but it will create 2 million jobs, cut taxes for middle class families and small businesses, and ensure that Americans who are still looking for work will continue to have the safety net they rely on to make ends meet.”
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Sen. Ben Cardin, D-Md., a former House member, said he talked to many of his Democratic House colleagues and believes they will ultimately support the package despite their initial anger over the size and scope of the tax cuts.
“I think in reflection you take a look at the bill over a little bit of time and you recognize that this bill is good for the constituency that we want to help, middle-income families,” he said. “The overwhelming majority of relief goes to them.”
The bill would extend for two years and to all income levels the Bush-era tax cuts that are set to expire this month. It would also lower the estate tax from 45 percent to 35 percent and cut the Social Security payroll tax by 2 percent. The bill extends unemployment insurance for 13 months.
House Democratic leaders on Wednesday were devising a procedure that would allow their angry caucus members to register their discontent through a floor vote without actually amending the bill, which Sen. Mitch McConnell, R-Ky., has warned would kill any chances of the measure reaching President Obama’s desk.
Liberals in the House have been fuming over the tax deal since Obama negotiated it with Senate Republicans and announced it last week. When the bill comes to the House floor, they want a chance to increase the estate tax and eliminate or reduce the payroll tax cut.
“We are still fighting at least for amendments on the worst aspects of the bill,” Rep. Peter DeFazio, D-Ore., told The Washington Examiner. “It would be hard for the leadership to totally deny what happened last week and bring up the bill as is.”
House Republicans have also expressed concern about the size of the bill and its effect on the deficit, but appear ready to back the measure and focus their opposition on the $1.1 trillion spending bill Democrats advanced for fiscal 2011 and which Republicans say is laden with wasteful pet projects. “I think the votes are probably there to get it done,” Rep. Jack Kingston, R-Ga., said of the tax cut and unemployment package.
