UPDATE 2-US House likely to pass reworked tax deal -aide

* Democrats push for changes in estate tax

* Many Democrats may still vote ‘no’

(Updates with many Democrats may oppose revised bill)

By Thomas Ferraro and Richard Cowan

WASHINGTON, Dec 10 (BestGrowthStock) – The U.S. House of
Representatives will likely pass next week, provided
Republicans accept some changes, the framework of President
Barack Obama’s plan to extend tax cuts, a senior Democratic
aide said on Friday.

The aide said House Democrats, before permitting a vote,
would demand a tightening of the estate tax provision.

“Many House Democrats may still oppose the final bill,” the
aide said, adding that it would need overwhelming Republican
support to pass. Most, if not all, Republicans are expected to
back the far-reaching package.

The House will likely approve the basic framework of the
president’s proposal, “but with some changes,” beginning with
the estate tax, the Democratic aide said.

Democrats are fuming that Obama conceded to Republican
demands that the estate tax be lowered from 45 percent to 35
percent. The president also agreed to boost the exemption to
estates of $5 million or less from $3.5 million, meaning fewer
estates will be affected.

Most Democrats have backed the 45 percent rate with a $3.5
million exemption, calling the Obama-Republican plan a giveaway
to the ultra-rich.

The senior Democratic aide said it remained unclear what
changes in the estate tax Democrats will propose in the overall
package. “Hasn’t been decided yet,” the aide said.

House Democrats at a closed-door meeting on Thursday
angrily agreed not to bring the Obama-Republican proposal up
for a vote unless revisions, including the estate tax, were
made.

Obama agreed to extend tax cuts for virtually all
taxpayers, including the wealthiest Americans, set to expire at
the end of this month.

Democrats had long favored limiting the renewal only to
annual income for families and individuals of up to $250,000
and $200,000, respectively.

The president cut the deal with Republicans, saying he did
not want to risk taxes rising for most Americans in January,
fearing it would hurt an already ailing U.S. economy.

The House could begin consideration of the measure within
days of anticipated Senate passage next week of a Senate
version of the plan.

The Senate opened debate late on Thursday, after Senate
leaders made changes of their own. A key procedural vote is set
for Monday.

The Senate version reflects the terms Obama reached with
Republicans. The bill adds a subsidy for ethanol but leaves out
the Build America bonds program popular with Democrats and
local governments.

(Reporting by Thomas Ferraro and Richard Cowan; Editing by
Jackie Frank)

UPDATE 2-US House likely to pass reworked tax deal -aide