Rep. John Yarmuth, D-Ky.

A House Democrat and a House Republican said Saturday they do not expect a  vote until after the weekend on any proposal to avert the looming fiscal  crisis.

Reps. Steve Stivers, R-Ohio, and  John Yarmuth, D-Ky., both told Fox  News they expected the Senate to work on a proposal through Sunday and perhaps  into Monday morning before voting, then pass the legislation to the House for a  final vote.

“I’m looking for something on Monday,” Yarmuth said. “The Senate is going to  have to act first. … They’ll need that time through Sunday and early  Monday.”

Said Stivers: “I think we’ll see it Monday. I don’t think we’ll see it  Sunday.”

Rep. John Yarmuth, D-Ky.

What the Senate will offer remains unclear, though the most likely plan is  extending tax cuts and deferring a deal on spending cuts until next year.

Senate leaders worked off-stage Saturday to reach a final-hours deal to avert  a fiscal crisis, though neither chamber was officially in session.

Senate Majority Leader Harry Reid, D-Nevada, adjourned the chamber until  Sunday so Democratic and Republican leaders can negotiate on a deal to present  to the House.

The Nevada Democrat was not seen on Capitol Hill on Saturday and staffers  said he did not plan to work from his Senate office. However, Minority Leader  Mitch McConnell was on the Hill.

House members will officially return Sunday should the Senate present them  with a plan to stop the tax increases and perhaps the deep spending cuts that  are scheduled to kick in next week.

They also will work on several remaining bills in the lame duck session.  However, neither the farm bill nor the emergency spending bill for Hurricane  Sandy is on the docket.

Senate leaders from both sides of the aisle vowed late Friday to scramble  over the weekend to produce a new bill, on the heels of a high-stakes White  House meeting with President Obama that is seen as the last chance to come  together before the tax-hike deadline.

Several senior administration officials told Fox News late Friday night that  McConnell, R-Ky., is showing strong signs that he will help seal a deal.

However, they acknowledges he will have a difficult time getting a deal  passed in the Republican-controlled House, which  has so far rejected any  plan that includes allowing tax rates to increase for higher-earning  Americans.

Reid called the White House meeting Friday “very constructive.”

“We need to have everybody step back a bit,” he said.

The pledge to work on a new bill is by no means a solution to the sweeping  set of tax hikes set to hit Jan. 1, followed by steep spending cuts. Lawmakers  still have to write the bill, and produce something that can pass both  chambers.

Obama, speaking from the White House briefing room late Friday, voiced a dose  of doubt about the Senate leaders’ final push for a deal.

He said he’s “modestly optimistic” but that if Reid and McConnell fail, the  Senate should allow an up-or-down vote on a scaled-back proposal the president  is pushing.

“The hour for immediate action is here, it is now,” Obama said. “We’re now at  the last minute, and the American people are not going to have any patience for  a politically self-inflicted wound to our economy. … We’ve got to get this  done.”

Considering how late this effort is getting underway, lawmakers easily run  the risk of missing the deadline and causing at least some uncertainty with  Americans’ tax bills starting next week.

The developments late Friday, though, at least showed Reid and McConnell were  beginning to work together. And it marked a decision by lawmakers that the  Senate should make the first move — for days, House Speaker John Boehner has  insisted that the Senate act, but Reid has resisted and put the onus on the  House.

It’s unclear what the new bill would entail. It appears the Senate wants to  tweak the Obama plan, which would include an extension of current tax rates for  most Americans — but potentially adjust it so fewer earners see a tax hike, and  add a provision dealing with a looming expansion of the estate tax.

The debt ceiling, which Obama wants increased, would not be part of this  bill. And a senior White House official admitted it is unclear how a looming set  of spending cuts would be addressed.

The White House official said that during the meeting, Reid and McConnell  jumped in and offered to draft a new plan after Obama told them he thought his  scaled-back proposal could pass both chambers.

The president’s plan is a far cry from the kind of “grand bargain” lawmakers  were shooting for just a few weeks ago — something that would narrow the  deficit, overhaul the tax code and set the country on a course to curb its  entitlement spending, all while averting massive tax hikes and spending  cuts.

Instead, Obama wants a bill that primarily nixes the tax hikes for families  making under $250,000. He has pushed that particular provision for months,  though Republicans have adamantly opposed raising taxes on those making above  $250,000.

Obama’s proposal would also extend unemployment benefits for roughly 2  million people expected to lose them next year, and deal with “other outstanding  issues.”

Obama referred to those other issues last week when he called for laying “the  groundwork for future growth and deficit reduction,” which presumably would be a  commitment to return next year and draft broader tax and entitlement  reform.

The latter idea, though, could stir deep skepticism in Congress — the last  big budget deal in the summer of 2011 ended precisely with such a commitment,  which in turn ended in failure and the fiscal crisis facing the country  today.

The immediate challenge for negotiators, though, will be to craft a plan that  does enough to spare most Americans a big hike without doing so much as to  complicate the bill’s passage. There are a host of expiring provisions next year  — from Medicare rates to doctors to payroll tax cuts — that some lawmakers  hoped to address before the end of the month. The more items added to the bill,  the trickier it gets to pass it.

Lawmakers have been hesitant to predict whether Congress will be able to  arrive at any solution.

“We are obviously running out of time here,” McConnell said earlier  Friday.

Lawmakers effectively have fewer than two working days to pass legislation.  While the Senate was in session this week, the House does not return until  Sunday afternoon.

Between now and Jan. 1, Congress has just a handful of options for sparing  taxpayers. Aside from the scaled-back plan being offered by Obama or the new  plan being drafted in the Senate, lawmakers could simply pass a short-term  extension of current rates — buying more time to work out an agreement.  Lawmakers might have to do this even if they reach an agreement by the weekend  — because of the sheer time it would take to write that bill and bring it to  the floor.

Or Congress could let the tax hikes happen, only to retroactively deal with  them next year. The Boston Globe reported Friday that the IRS may delay the  impact of tax hikes by holding off on telling employers to change how much they  withhold from workers.

Source: Fox News


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