By Alexander Bolton - 12/14/10 12:10 AM EST
President Obama's $858 billion tax package won a huge bipartisan majority in the Senate on Monday evening, setting it up for a contentious debate in the House.
On an 83-15 vote, the Senate quashed a filibuster by Sen. Bernie SandersBernie SandersDNC chairwoman: If up to me, I’d exclude independents from Dem primaries Clinton allies fume over Sanders's vow to fight on President Obama is urging Congress to pass TPP MORE (I-Vt.).
Fifteen lawmakers voted against it, including five Republicans: Sens. Tom CoburnTom CoburnGOP faces existential threat Sanders tops 2016 field in newly deleted tweets The Hill's 12:30 Report MORE (Okla.), Jim DeMint (S.C.), Jeff SessionsJeff SessionsTrump seeks approval from foreign policy experts, but hits snags Many Republicans uninterested in being Trump’s VP: report GOP warms to Trump MORE (Ala.), John Ensign (Nev.) and George Voinovich (Ohio).
Nine Democrats and one Independent voted against the bill: Sens. Jeff Bingaman (N.M.), Sherrod BrownSherrod BrownLawmaker offers bill to impose 'exit tax' on expatriating companies For Clinton, there's really only one choice for veep Let the Democratic veepstakes begin MORE (Ohio), Russ Feingold (Wis.), Kirsten GillibrandKirsten GillibrandCarter pledges probe of sex assault testimony This week: Congress on track to miss Puerto Rico deadline Maryland Senate primary intensifies MORE (N.Y.), Kay HaganKay Hagan10 Senate seats most likely to flip in 2016 Senate Republicans are feeling the 'Trump effect' Washington's lobby firms riding high MORE (N.C.), Frank Lautenberg (N.J.), Patrick LeahyPatrick LeahyJudiciary Dems seek hearing on voting rights Overnight Cybersecurity: Voter data breaches spark fraud concerns Overnight Regulation: FDA campaign targets smoking in LGBT community MORE (Vt.), Carl LevinCarl LevinCarl, Sander Levin rebuke Sanders for tax comments on Panama trade deal Supreme Court: Eye on the prize Congress got it wrong on unjustified corporate tax loopholes MORE (Mich.), Mark UdallMark UdallEnergy issues roil race for Senate Unable to ban Internet gambling, lawmakers try for moratorium Two vulnerable senators lack challengers for 2016 MORE (Colo.) and Sanders.
“It makes no sense to me to provide huge tax breaks for millionaires and billionaires while we drive up the national debt that our children and grandchildren will have to pay," Sanders said in a statement after the vote.
In a statement in the White House briefing room, Obama hailed the Senate's "strong bipartisan support" for the package and declared "this proves that both parties can, in fact, work together."
Retiring Sen. Chris Dodd (D-Conn.) said he voted for the package because he thought it unlikely Congress could win equally generous benefits for the unemployed next year, when Republicans will control the House.
“To sit there and watch this institution, the Congress, do great damage to the unemployed because we rejected a proposal I didn’t like but was a lot better than the one you’re going to get,” said Dodd, “I would have been upset with myself.”
A vote on final passage could happen as soon as Tuesday if opponents agree to waive the 30 hours that must elapse after a vote to end a filibuster.
Given Monday’s lopsided vote, the package is expected to win final passage easily, which one Democratic leadership aide predicted would “likely” happen on Wednesday.
Senate Majority Leader Harry ReidHarry ReidFreedom Partners Action Fund launches ad buys in Wisconsin, Nevada Trump: 'I'd have to think about' Cruz for Supreme Court Reid: Judiciary a 'rubber stamp' for Trump-McConnell MORE (D-Nev.) and Republican Leader Mitch McConnellMitch McConnellReid: Judiciary a 'rubber stamp' for Trump-McConnell Iran and heavy water: Five things to know Overnight Finance: House rejects financial adviser rule; Obama rebukes Sanders on big banks MORE (Ky.) were in the midst of negotiating an agreement to allow Democrats and Republicans to offer a few amendments to the package. A senior Democratic aide, however, said none of the amendments is expected to pass.
Senate action will send the package to the House, where Democrats will hold a caucus meeting Tuesday to discuss how to proceed, said a Democratic aide.
House Democrats could set up a self-executing rule that would bring the legislation to the floor with changes. In particular, Democratic leaders are looking at reworking the rates the Senate has set for the estate tax.
One option is to bring the package to the floor with language that would set the estate tax at its 2009 level: a 45 percent tax on individual inheritances over $3.5 million.
This path would send the bill back to the Senate to approve the changes, but Republicans in the upper chamber would likely balk at a substantial revision to a core element of their agreement with President Obama.
McConnell warned that House Democrats would cause tax rates to go up across the board if they tampered with the bipartisan deal.
“We now urge the House leadership to bring this bipartisan agreement to a vote without political games or partisan changes designed only to block this bill’s passage in the House,” McConnell said in a statement. “If the House Democratic leadership decides to make partisan changes, they will ensure that every American taxpayer will see a job-killing tax hike on Jan. 1.”
Dodd, however, said “if the House comes back with something different, and I hope they do, and we can do it, I’ll be one of the happiest members around here.”
Another option is to bring the Senate-passed bill to the floor and allow a vote on a House Democratic substitute. This would allow the House to pass the Senate bill unchanged and give liberal members political cover to vote for a substitute.
Obama said he understands members of both parties are "unhappy" with the compromise, but he said the package is "first and foremost" a "substantial victory" for middle-class families.
House Democrats have vocally opposed the package, which would extend for two years most of the Bush-era tax cuts, including income tax rates for even the nation’s wealthiest families. They are most disappointed with the decision to set the estate tax at 35 percent and apply it only to individual inheritances over $5 million.
The legislation would extend federal unemployment benefits for 13 months and cut the Social Security payroll tax by two percentage points, from 6.2 to 4.2 percent.
It includes a two-year fix of the Alternative Minimum Tax to protect an estimated 21 million households, many in wealthy communities in the Northeast, from higher taxes.
It would allow businesses to write up 100 percent of the cost of certain major investments in 2011.
It would extend a variety of business and energy tax incentives, such as the research and development tax credit, the ethanol tax credit and grants for the solar and wind industries.
Sen. John McCainJohn McCainExperts warn weapons gap is shrinking between US, Russia and China McCain delivers his own foreign policy speech Republicans who vow to never back Trump MORE (R-Ariz.) and some taxpayer-advocacy groups ripped some of the energy provisions. McCain called the ethanol provision the “Hawkeye Handout” because senators from corn states, such as Tom HarkinTom HarkinDo candidates care about our health or just how much it costs? The Hill's 12:30 Report Mark Mellman: Parsing the primary processes MORE (D-Iowa), supported the provision.
The ethanol tax credit would cost about $6 billion in 2011. Taxpayers for Common Sense noted the Government Accountability Office found the credit duplicative of the current renewable fuels standard.
Mike Lillis and Sam Youngman contributed to this report.
This story was posted at 4:14 p.m. and updated at 7:10 p.m.