Congressional leaders predict immigration law
Sun Jan 7, 2007 3:11 PM ET

WASHINGTON (Reuters) - Democratic and Republican leaders predicted
on Sunday the U.S. Congress would pass an immigration law this session after scuttling President George W. Bush's plan last year.

Democratic leaders also said they were looking at ways to provide
middle class tax relief, with one hinting of possibly ending some tax breaks for the wealthy.

House of Representatives Democratic Leader Steny Hoyer of Maryland
said on "Fox News Sunday" that immigration was one of the topics discussed when congressional leaders were invited to the White House
last week to meet with Bush.

"He (Bush) smiled and he said, 'You know, I think I'm going to
have a lot easier time dealing with you on immigration than I had dealing with the House Republican leadership on immigration,'" said Hoyer.

"I think that's the case," said Hoyer, who did not detail the plan.

Bush proposed a major overhaul of the immigration system that
included a limited guest worker program and an easier path to citizenship for many already in the country. He coupled that with money for i
ncreased border security.

In the end, House Republicans killed the immigration overhaul and Congress limited its action to approving money for 700 miles of fencing along the U.S.-Mexico border.

Senate Republican Leader Mitch McConnell of Kentucky agreed that an immigration bill was possible.

Democrats last week took control of both houses of Congress for the first time in 12 years and have been outlining their legislative agenda since then.

On taxes, Democratic House Speaker Nancy Pelosi of California said her party was looking at ways to provide "tax cuts for the middle class" but did
not rule out repealing breaks for the wealthiest taxpayers.

"We're not going to start with repealing tax cuts, but they certainly are not off the table for people making over half a million dollars a year," Pelosi said on CBS' "Face the Nation."

And Hoyer said Democrats were hoping to find a way to adjust the alternative minimum tax so it did not strike the upper middle class.
The tax was instituted to make sure the rich did not escape paying some tax, but it has not been changed or indexed so that inflation has brought more people under its provisions, raising their taxes.

But drastically changing it could cost the federal government $1 trillion over 10 years.

Hoyer said he thought the tax could be adjusted and not cost the government anything but he did not say how.

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