Reed: Final vote on Bush tax cuts might be after election

“Being honest, I think given the time constraints and the fact that there is a campaign season afoot, that the ability to do anything major is going to be very limited,” he told reporters. 

Reed does expect the debate on the Bush tax cuts to begin before the election. 

Senate Majority Leader Harry Reid (D-Nev.) is expected to act on the Bush tax cuts after the chamber decides the fate of legislation providing tax relief and loan opportunities to small businesses. 

The Democratic leader has signaled that he will bring to the floor a measure that continues the Bush tax cuts for the middle-class while allowing breaks for wealthier taxpayers to expire at the end of the year. 

Several senators have opposed this idea, saying the weak economy requires that all the tax cuts be extended, at least temporarily. Their argument suggests that Reid may not have the 60 votes he needs to advance his legislation to the House. 

However, Sen. Jeff Merkley (D-Ore.) thinks his colleagues will have a hard time opposing tax cuts aimed at the middle-class because the progressiveness of the tax code means wealthier taxpayers also benefit from the relief.

“I think when it comes down to it, it’s going to be very hard for someone to say, ‘hey, a $7,000 tax cut isn’t enough for the wealthy and so I’m going to take away [the relief] for the other 98 percent who are actually getting less than $7,000,” he said. “That’s a very tough argument to make.” 

Source have told The Hill that some senator Republicans are concerned about the political fallout in opposing a middle-class tax cut while favoring tax cuts for the wealthy.

Merkley and Reed back the plan to only extend those tax breaks benefiting the middle-class. 

Extending the tax cuts for the wealthy would cost roughly $35 billion for one year. 

Reed said that money could be put to better use by reducing payroll taxes for businesses. President Obama recently considered this approach, but passed on the idea because it would negatively affect entitlements, which payroll taxes fund.