Carried Interest

Senate Democrats Don't Expect to Pass Extenders Legislation by Sam Goldfarb




Senate Democrats said June 24 that they don't expect to pass extenders legislation in the near future and will move to a small-business bill after a procedural vote later in the day.



The Senate is expected to vote today on a motion to limit debate on a substitute amendment to H.R. 4213, the American Jobs and Closing Tax Loopholes Act of 2010. At a press conference, Democratic leaders said they do not anticipate that moderate Republicans will support the amendment despite repeated efforts to modify the legislation to resolve differences.



Senate Majority Leader Harry Reid, D-Nev., said that extensions of tax cuts such as the research credit and the state and local sales tax deduction will not be moved to the small-business bill because the tax extenders and small-business provisions are "separate issues." Offsets, such as a tax increase on carried interests, could conceivably be used to pay for other legislation, he said.



Democrats refused to say if there is a plan to address the extenders later in the year. "Until we get a few more votes on this, I don't know what we're supposed to do," said Sen. Patty Murray, D-Wash.



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