Biz bill, taxes, primaries

After a summer of setbacks, Democrats will probably score a legislative victory this week by passing a small-business bill that is now stalled.

The measure, which had been blocked by Senate Republicans before the August recess, has acquired the backing of retiring Sen. George Voinovich (R-Ohio).

{mosads}But the headline-grabbing issue that will be debated throughout the month will be the expiring Bush tax cuts. The White House wants to extend them for families making less than $250,000 a year and individuals earning less than $200,000. President Obama does not have the votes to do that — Senate Republicans and some Democrats want to eliminate those income thresholds — and has hinted that he is willing to compromise.

House Minority Leader John Boehner (R-Ohio) raised eyebrows over the weekend when he said he would vote for the president’s plan if he had no other option. Boehner has repeatedly said he supports an extension of all the tax cuts, and his statement on Sunday was quickly touted by the White House as a change of position.

Regardless, the policy on the tax cuts will be set in the Senate, where a handful of Democrats have signaled they do not want to raise taxes on anyone in 2011. 

With Democrats anxious about the midterm elections and wanting to maximize their days with constituents back home, it’s unlikely a deal on the taxes will be reached before October. In all likelihood, a bill will be signed during the lame-duck session in November or December.

There are big primaries on Tuesday as beleaguered Rep. Charles Rangel (D-N.Y.) tries to survive a primary challenge while Senate hopeful Rep. Mike Castle (R-Del.) attempts to fend off a Tea Party favorite in his primary. Meanwhile, New Hampshire Republicans will decide whom they want to face Rep. Paul Hodes (D-N.H.) in the general-election race to replace retiring Sen. Judd Gregg (R-N.H.). 

House and Senate hearings this week will tackle the regulation of firearms, national rail policy and the nomination of Jacob Lew to become the next director of the Office of Management and Budget.