Senate Democrats will 'keep trying' to pass tax extenders legislation

Senate Democratic leaders will meet Friday to determine a way forward on tax extenders package after an attempt failed Thursday night to end debate and advance the legislation.

Senate Finance Committee Chairman Max Baucus (D-Mont.) said he wasn't sure at this point what changes or cuts would attract the one or two Republicans needed for passage, speculating that it's possible nothing can be done.

Nearly all Democrats are now aligned — 12 Democrats opposed ending debate Wednesday — with their party in support of the bill, except for Sen. Ben Nelson (D-Neb.), who has said repeatedly that he won't back a bill that's not completely offset.

The second version of the measure unveiled Wednesday night — designed to attract opponents — cut deficit spending from $80 billion to $55 billion.

But that wasn't enough for Nelson.

Baucus said he has been fighting "mightily" to get enough support to pass the bill, and he vowed Thursday night to "keep trying, because that's what the American people want us to do."

Senate Majority Leader Harry Reid (D-Nev.) wouldn't say whether the bill would be ready for floor action next week, but there's a growing sense of urgency to fix Medicare payments to doctors, extend unemployment benefits for the long-term jobless and renew expired tax breaks for small businesses.

Reid attempted to pass several targeted bills Thursday to avoid Medicare payment cuts to doctors and provide for extended unemployment benefits and matching payments to states for Medicaid. He also tried to pass a bipartisan measure that would extend for three months the closing deadline on purchases of houses that are eligible for the homebuyers tax credit, which expired April 30.

The second version of the Baucus legislation cuts an extra $25 from weekly unemployment benefits checks, part of the February 2009 economic stimulus, saving $5.8 billion.

Another $16.4 billion is saved by postponing the Medicare payment cuts to doctors through November, instead of the 19 months included in the House-passed measure. The doc fix expires on Friday, meaning doctors would see a 21 percent pay cut for doctors.

The House passed a $115 billion version of the measure before the Memorial Day recess as two separate bills — one with all of the tax extenders and unemployment benefits and another that dealt with the $23 billion Medicare doc fix that would last 19 months.