By Jay Heflin - 05/27/10 02:33 PM EDT
The prospect that amendments could be offered likely means the Senate will not meet its deadline to complete work on the bill before the Memorial Day recess.
Sources told The Hill the bill would have a hard time passing the Senate without amendments.
One proposed change is to reduce the tax increase on carried interest by delaying its enactment date and diluting the blended tax rate so more income is taxed at capital gains rates.
Under the House proposal, carried interest for the first two years will be taxed at ordinary income and capital gains rates — a 50/50 split, which amounts to a tax rate of roughly 30 percent. That split changes to 75/25 after two years, which amounts to a 35 percent rate.
If the Senate modifies the bill, it is unclear how those changes will be received in the House. Democratic leaders there have had a hard time garnering support for the bill that is about to be voted on in their chamber.
Senate changes could be viewed in the House as a snub for the painstaking negotiations that have occurred on the bill these past several days.