Congress is currently on summer recess and is set to reconvene on Sept. 13. When they return, Senator Chuck Grassley, R-Iowa, says he expects the Senate to be spending several days on taxes.
"I don't know to what extent we're going to be able to reach a consensus to move something along," Grassley said. "There's a split within the Democratic party of whether or not you ought to raise taxes during a recession."
And then Grassley says there are Republicans who want to keep the existing tax law as it is into the future, especially given the recession. He says the differences on both sides make it difficult to predict what will happen. He says there doesn't seem to be a path to finality on issues of estate tax, income tax and extenders, but everyone knows they need to be dealt with.
"I don't think people want to go home to the election and say we're going to do it in the lame duck," Grassley said. "The credibility of Congress is not great enough to sell that proposition."
Grassley thinks there is a great deal of pressure to get something done in September on those issues, as well as a continuing resolution for the next fiscal year and possibly something on energy, which Grassley says could go beyond the extenders for wind, ethanol and biodiesel.