TAX NEWS - June 2010

Passage of Unemployment Extension in "Tax Extenders" Bill HR 4213 Uncertain in Senate

Senate Democratic leaders have expressed confidence in their ability to pass their version of HR 4213, the so-called "tax extenders" bill which includes a filing deadline extension for unemployment insurance benefits, but questions remain as to whether they will be able to muster the necessary votes.

On Wednesday of this week, Senate Democrats sought out the sole Republican vote necessary for the magic number of 60, necessary to get any major piece of legislation through the current hyper-partisan Senate.

In addition to the unemployment extension, the $140 billion tax extenders package contains small-business tax breaks and closing certain tax loopholes for private wealth fund managers. Time is ticking for legislators to make an impact on the high unemployment rate before the November elections, and nothing speaks louder at the polls than the unemployed enfranchised.

Although it's easy to count all 59 Democrats to vote for the measure (including Independent Lieberman), it's not yet a certainty. And without a doubt, Republicans vote in lockstep to stonewall any major piece of legislation before the Senate, save for the occasional Brown, Snowe, or Collins to break ranks and usher through meaningful legislation.

GOP Senators continue to cite the deficit as they hesitate to vote for a bill that isn't paid for.

Whatever the case, it is unlikely that this bill will see a vote before next week.