The legislation is expected to extend several tax breaks that expired last year, resuscitate benefits for the unemployed, address the so called 'doc fix,' and extend Build America Bonds. The bill might also include funds for summer programs.
Only the tax portion of the bill is expected to be paid for. Offsets are expected to include taxing carried interest at a level above current capital gains rates, which raises between $15 billion and $20 billion; no longer allowing U.S. multinational companies to "split" foreign tax credits, which raises roughly $9.5 billion; and possibly using pensions to raise another $2.7 billion.
Other offsets might also be needed if tax-writers choose to use the broader tax extender bill created in the Senate.
Democratic leaders in both chambers hope to have the bill on President Obama's desk by the beginning of the Memorial Day recess.