On Taxes, a Clear Senate Vote for Extensions, Against a Tax Increase

By December 14, 2010Taxation

The U.S. Senate on Monday voted overwhelmingly for the Obama-Republican (now with the Senate Democrats, too) compromise on taxes (H.R. 4853), invoking cloture on the motion to proceed by a vote of 83-15. The National Association of Manufacturers had supported the motion through a “Key Vote” letter, and NAM Executive Vice President Jay Timmons issued a statement lauding the Senate vote: “Our country’s unemployment rate remains historically high, and now is not the time to raise taxes on small businesses who are the job creators.”

The Senate reconvenes at 10 a.m. today, with a vote on final passage possible today. House Democrats are making noises about changing the estate tax provisions — 35 percent with a $5 million individual exemption — which is already a major compromise. That could be disastrous politically and economically. Portfolio.com, “Tax Cut Deal Headed to a Vote“:

Changing the estate tax provision could jeopardize Republican support for the bill, however, since the lower estate tax rate was part of the deal they negotiated with Obama. Most business groups contend that high estate rates and low exemptions hurt family-owned businesses.

The estate tax is “a huge issue” for many manufacturers, said Dorothy Coleman, vice president of tax policy for the National Association of Manufacturers.

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