OVERNIGHT MONEY: Senate Finance aims for extenders package

By Vicki Needham, Bernie Becker and Erik Wasson - 08/01/12 06:51 PM ET

THURSDAY'S BIG STORY:

One step forward, 60 amendments back: Sen. Tom Coburn (R-Okla.) could bring a planned Senate Finance markup to a screeching halt.

Coburn said Wednesday that he is willing to stop the panel from marking up a package of expired or expiring tax breaks unless Finance Chairman Max Baucus (D-Mont.) accepts his amendments to the extenders package.

The Oklahoma Republican could stop the panel from waiving the rule requiring 48 hours of notice before a markup is scheduled to push his provisions.

Senate Finance members announced a deal on Tuesday night.

The meeting could be pushed to Friday if Coburn won't allow for waiving the rule, but with a five-week recess looming, lawmakers are eager to head out of town.

Under the agreement, the extenders package would cost just over $150 billion over 10 years, and a popular credit for research and development would be extended and the Alternative Minimum Tax would be kept from hitting more middle-class families for another year.

Coburn has 60 proposed amendments to the measure, including some that would limit which businesses could use a tax credit aimed at spurring investment in low-income areas and others for increasing energy efficiency.

He also has another amendment that would only allow the extenders to go into effect when the annual federal deficit dips below $1 trillion.

Baucus said Wednesday that the markup was a go.

A senior Senate aide also slammed Coburn on Wednesday for his attempt to undercut a rare example of bipartisan cooperation on Capitol Hill.

Baucus and Sen. Orrin Hatch (Utah), the Finance Committee’s top Republican, have said the extenders agreement was the sort of bipartisan cooperation that would be needed to deal with the fiscal cliff.

Hatch called it a first step to tax reform.

Baucus and Hatch have worked together recently to reach agreements, including one on a Russian trade and human-rights bill, only to see the measure delayed.

WHAT ELSE TO WATCH FOR

Drought help: The House will vote Thursday on a drought assistance bill even as environmental and farm lobbyists express opposition for the bill.

The drought bill is hitting the House floor after leaders decided to delay action on a one-year farm bill.

The Senate will not take up the bill this week, Democratic leaders said, so the measure will sit in a queue until September.

It extends disaster assistance mainly to livestock owners, which expired in 2011, for one year.

More defense: The Senate Appropriations Committee will wrap up work on a more than $600 billion bill to fund the Pentagon and another to fund the legislative branch. The subcommittee approved the defense bill on Wednesday.

The legislative branch measure will be released at the markup after being informally pulled out of subcommittee without a formal markup. Sen. Ben Nelson (D-Neb.) has been pushing for deeper cuts than committee leadership.

Examining the regs: Sen. Rob Portman (R-Ohio), who has been mentioned as a possible running mate for Republican presidential candidate Mitt Romney, teamed up with Sens. Mark Warner (D-Va.) and Susan Collins (R-Maine) in introducing a bill that would require independent agencies to perform a cost-benefit analysis on all new regulations.

The bill would encompass the Securities and Exchange Commission, the Commodity Futures Trading Commission, the National Labor Relations Board and the Federal Communications Commission, among others.

BREAKING NEWS

Tax extension: The House approved GOP legislation late Wednesday that would extend all current tax rates for another year, and also turned away a Democratic bill that would have allowed rates to rise for higher-income earners.

The measure passed on a 256-171 vote that saw 19 Democrats vote with Republicans, highlighting division in the Democratic party over taxes. Only one Republican voted no.

Just say, no for now: The Federal Reserve on Wednesday announced no new steps to deal with the sluggish economy, but signaled a willingness to take action if the slowdown continues.

The central bank reiterated that it intends to keep interest rates low through 2014, while reporting that "economic activity decelerated somewhat over the first half of this year."

ECONOMIC INDICATORS

Initial Claims: The Labor Department releasing its weekly filings for jobless benefits, which have fluctuated lately because of a change in the schedule of planned auto factory layoffs.

Mortgage Rates: Freddie Mac is releasing weekly data on fixed-rate mortgages, which are locked in at historic lows.

Factory Orders: The Commerce Department is releasing June data on factory orders that consist of the earlier announced durable goods report plus non-durable goods orders.

WHAT YOU MIGHT HAVE MISSED

— Russia trade bill runs out of steam
— Reid jabs Boehner's offer to reconvene on fiscal cliff stalemate
— GOP, Obama budget chief trade blame for sequestration cuts
— With default looming, senators urge House postal action
— DeMint accuses Amazon of lobbying for online tax to cripple competitors
— Rubio bill outlaws taxes on gold medals
— Manufacturing sector contracts for second straight month
— Report: Romney plan would shift tax burden from rich
— Pentagon warns sequester cuts will lead to ‘unready, hollow’ force
— Lugar, Ecuador tussle over alleged trade pact violations
— Senators demand presidential debate on bipartisan fiscal plan
— FEMA makes disaster aid available for Washington, DC
— Report: Private sector added 163,000 jobs in July