On March 10, the Senate began debating the FY 2009 budget resolution (S. Con. Res. 70) and, depending on the number and consideration of amendments, could vote as early as March 13. Meanwhile, the House is expected to hold a vote either March 12 or March 13 on its own version (H. Con. Res. 312).

The budget blueprint is a largely non-binding resolution for tax and spending priorities that must be agreed on by both chambers of Congress. As a concurrent resolution, it is not sent to the White House for acceptance or rejection by the president.

Both the Democratic House and Senate budget blueprints would restore proposed spending cuts in the 2009 administration budget submission. Neither proposal specifically allows for extensions of President George W. Bush’s 2001 and 2003 tax cuts, a move that angered many Republicans. However, Democrats have argued they have no intentions of letting anything expire, particularly tax cuts enacted with broad bipartisan support impacting middle-income taxpayers.

Both the Bush proposal and the House and Senate blueprints aim for a balanced budget by 2012, though none of the three include the costs of keeping the alternative minimum tax (AMT) from expanding its reach beyond 2009. This means, in order to prevent the AMT from continuing, it would have to be offset through spending cuts or revenue increases elsewhere.

Senate Finance Committee Chairman Max Baucus (D-Mont.) is expected to offer an amendment on the floor using projected budget surplus funds from 2012 and 2013 to finance extensions of the middle-class tax cuts, extend the child tax credit, prevent an estate tax increase and accommodate a military tax-relief measure. Last year, a similar amendment to the FY 2008 budget resolution was overwhelming accepted and this one is expected to meet a similar reception again. Senator Jon Kyl (R-Ariz.) will offer an amendment calling for full repeal of the estate tax, which failed when offered during last year's budget debate, and isn't expected to pass muster this year.

Despite alternative budget proposals offered by House Republicans, the Congressional Black Caucus and the Progressive Caucus, the House Democratic budget resolution is expected to pass. In the Senate, Budget Chairman Kent Conrad (D-N.D.) may face a slightly tougher time getting the necessary votes for his proposal.