On Wednesday a dozen members of the Democratic caucus voted against a procedural motion that prevented a larger version of the extenders bill from advancing. Very quickly, Senate Finance Committee Chairman Max Baucus, D-Mont., made a number of changes. He reduced the cost of the bill from $140 billion to $118 billion by shrinking unemployment checks and shortening to six months from 19 months a provision that would prevent a deep cut in Medicare reimbursement rates to doctors. Ag interests are watching the measure closely mainly due to the inclusion of the biodiesel tax credit.
Baucus also raised the bill's per-barrel tax on oil and softened tax provisions that would affect certain small businesses as well as the "carried interest" earned by real estate investors, venture capitalists and private equity managers. The bill would still revive expired tax breaks, spend $1 billion on a summer jobs program and extend aid to states for Medicaid costs. Slightly more than half of the costs are covered with offsets.
But for Senator Ben Nelson, D-Neb., nothing's changed. He continues to oppose the bill because its costs are not entirely offset. Other Democrats may be willing to change their Wednesday "no" vote. Senator Mark Begich, D-Alaska, said he appreciated the changes on carried interest and was still studying the oil tax language. He said the changes get him a lot closer.
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