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Obama aide predicts passage of tax cut legislation

world Updated: Dec 12, 2010 20:42 IST

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White House adviser David Axelrod predicted on Sunday that US President Barack Obama's tax-cut deal with Republicans will pass Congress by year's end.

A test vote in the Senate is set for Monday on legislation that would avert a Jan 1 increase in income taxes for nearly all Americans. The package faces a tougher sell in the House of Representatives, where Democrats have voted not to allow it to reach the floor without changes to scale back tax breaks for the rich. Axelrod told CNN's "State of the Union" that the administration will prevail in the House. He called the deal "a tremendous win" for the middle class, but acknowledged it's a compromise with items the White House doesn't fully embrace.

He said House Speaker Nancy Pelosi "understands the consequences of inaction" on the plan. And Axelrod said there's urgency in passing it because "everyone understands what it will mean to the economy if we don't get this done."

House Democrats are talking about trying to scale back a provision that would allow estates as large as $5 million to escape taxation. "That was a bridge too far for many of our members," Pelosi, said this past week.

But Axelrod said on ABC's This Week that "I don't see major changes" in the House to the package that the White House developed with Senate Republican leaders.