Senate Finance Committee members passed the tax reconciliation bill out of committee yesterday, after stalling for a number of days due to Sen. Olympia Snowe's (R-ME) opposition to the provision extending low tax rates for capital gains and dividends. The $60 billion measure which passed does not include the extensions, which were put in place in 2003 and scheduled to expire in 2008. This is a legislative setback for President Bush, who has repeatedly called on Congress to make his expensive, deficit-financed tax cuts permanent. Three Democrats ended up voting for the measure, which was not offset in any way. They were ranking member Max Baucus, (D-MT), Charles Schumer (D-NY) and Blanche Lincoln (D-AR). The bill will now go to the Senate floor, perhaps as early as today. The Senate version differs greatly from the reconciliation bill passed by the House Ways and Means Committee late last night. The House bill extends low capital gains and dividends rates through 2010, along with a tax cut on the overseas income of U.S. banks, and a handful of other business extenders. It does not include a one-year fix for the alternative minimum tax, which the Senate bill contains. It remains to be seen what will come out of conference, but there will definitely be sparring over what to include. Sens. Jon Kyl (R-AZ) and Mike Crapo (R-ID) have said, for instance, that they will work to restore the capital gains and dividend extension in conference. Washington Post: Senate Panel Does Not Extend Tax Rate Cut