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Wednesday, November 16, 2005
Frist Adamant About Reinsterting Rate Extensions
Although we do have Sen. Olympia Snowe (R-ME) to thank for successfully pressuring Finance Committee Chair Grassley (R-IA) to remove the cap gains and dividends extensions from the reconciliation tax bill, it appears this victory could be very short-lived. Senate conservatives have agreed not to press the issue during floor debate, so that it will move into conference talks with the House (the Senate is voting on the reconciliation tax bill today). But Majority Leader Bill Frist (R-TN) said yesterday he will push for the dividend and capital gains provisions to be re-inserted into the bill during negotiations, which pretty much makes Sen. Snowe's heroic holdout somewhat moot. Frist said the issue is "too important to our economy to be left on the cutting-room floor, and I will not bring a conference report to the Senate floor that does not include this extension."
Finance Committee Democrats Baucus, Lincoln, and Schumer should not have voted for that bill in committee both because the contentious tax rate provision will likely be reinserted, and because the $60 bllion in tax cuts is not offset (and therefore, will irresponsibly add to the deficit). Despite Snowe's effort on the issue, Frist will certainly make sure the extensions are in the final bill, and Senators opposed to those extensions would be wise to keep that in mind while voting.
Posted by Becky Lewis
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