Prior to adjourning for spring recess last week, the Democrat-led House and Senate voted and passed slightly different versions of a federal budget framework for FY 2009. The Senate took more than 40 votes during consideration of their budget resolution (S. Con. Res. 70) over a 15-hour period and completed consideration the day after the House passed its version (H. Con. Res. 312) by a vote of 212-207.

While differing in their approach regarding how the budget deals with the expiration of critical small business tax relief as provided for in the 2001 and 2003 tax packages, both the House and Senate versions give a boost to federal spending. The $3 trillion budget plan in the House allows for a blanket 2010 expiration of the tax relief measures initiated by President George Bush. Meanwhile, in the Senate some tax relief measures aimed at lower-and-middle class taxpayers were allowed to continue. However, a vote to fully extend tax relief across-the-board was defeated.

The final vote in the Senate on the budget resolution passed 51-44, with one voting "present" and four members not voting. The most significant amendment adopted was a measure offered by Finance Chairman Max Baucus (D-Mont.) that would provide more than $300 billion in tax breaks for middle class, homeowners, and active duty military personnel and pay for it with projected surpluses from 2012 and 2013. The amendment includes a permanent extension of the 10 percent income tax bracket, the refundable child tax credit, marriage penalty relief, the tax credit for child care expenses and an increased adoption tax credit. Most significant for the small-business community is that it would also make permanent the 2009 estate tax rate and exemption levels.

NSBA monitored a host of amendments during the Senate debate including a series of amendments on the estate tax. Unfortunately, the Senate voted against three attempts to change the estate tax. Senator Jon Kyl (R-Ariz.) offered a proposal to protect small businesses, family ranches and farms from the estate tax by providing a $5 million exemption, a low rate for smaller estates and a maximum rate no higher than 35 percent. The amendment failed 50-50. Despite failing, NSBA's position did gain support from both Sens. Mary Landrieu (D-La.) and Blanche Lincoln (D-Ark.) who favor some form of estate tax relief as called for in this amendment.

The budget resolution is a largely non-binding outline of the Democratic tax and spending priorities, which serves as a platform for the parties to joust on fiscal issues. As a concurrent resolution, it is not sent to the White House for acceptance or rejection by the president.