By Jay Heflin - 05/14/10 03:45 PM EDT
Brown is one of a handful of centrist Senate Republicans who Democratic leaders thought might support the tax increase.
His opposition to the increase, along with Democratic Sens. Mark WarnerMark WarnerLiberal group: Kaine could be 'disastrous' VP pick Buzz grows that Tim Kaine will be Clinton's VP pick GOP platform attempts middle ground on encryption debate MORE (Va.), Jeanne Shaheen Jeanne ShaheenDemocrats ‘freaked out’ about polls in meeting with Clinton GMO labeling bill advances in the Senate over Dem objections Overnight Defense: US blames ISIS for Turkey attack | Afghan visas in spending bill | Army rolls up its sleeves MORE (N.H.), Bob CaseyBob CaseyLiberal group: Kaine could be 'disastrous' VP pick New Guccifer 2.0 dump highlights ‘wobbly Dems’ on Iran deal Senate Dems push Obama for more Iran transparency MORE Jr. (Pa.), and Patty MurrayPatty MurrayOvernight Energy: Officials close in on new global emissions deal NBA pulls All-Star Game from NC over bathroom law 40 senators seek higher biodiesel mandate MORE (Wash.), who also signed the letter, makes it seem virtually impossible Senate leaders will get the 60 votes they need to pass the extender legislation from the chamber.
Democratic leaders in both chambers hope to advance the bill to the White House before the Memorial Day recess. To accomplish this feat, they might replace the tax increase on carried interest with a tax increase on foreign insurers, sources told The Hill last night.
The replacement provision would no longer permit foreign-controlled insurers to write off profits made on U.S. policies and would raise raise approximately $17 billion, according to the Joint Committee on Taxation.
The tax increase on carried interest is expected to raise $20 billion, meaning lawmakers would need to find additional offsets worth $3 billion if they go the foreign insurer route.