The News in 2 Minutes

From The Associated Press

Senate passes huge tax break package

WASHINGTON, D.C.—The Senate passed a giant tax package Tuesday that saves more than 20 million taxpayers from the bite of the alternative minimum tax.

At a cost of more than $100 billion, the bill also nudges the nation toward greater use of alternative energy resources, renews popular tax breaks for businesses and individuals, and extends relief to disaster victims.

It includes a provision to ensure that mental health problems get the same level of insurance benefits as other medical treatment. The bill passed 93-2.

The House was expected to take up the tax package on Wednesday.

Emissions-trading plan proposed in West, Canada

SACRAMENTO, Calif.—Arizona, California and five other Western states and four Canadian provinces on Tuesday proposed a comprehensive program to cut greenhouse gas emissions from power plants, manufacturers and vehicles.

The Western Climate Initiative would establish a regional market to trade carbon emissions credits and is designed to keep costs down for those affected. It covers more polluters than other regional plans adopted in the United States, Canada and Europe.

In Phoenix, Arizona Gov. Janet Napolitano says federal inaction dictated that the action on climate change. But what isn’t known yet is whether and how Arizona will actually implement the new program. Department of Environmental Quality Director Steve Owens, is WCI co-chair.

Democrats to let drilling ban expire

WASHINGTON—Democrats have decided to allow a quarter-century ban on drilling for oil off the Atlantic and Pacific coasts to expire next week, conceding defeat in an months-long battle with the White House and Republicans set off by $4 a gallon gasoline prices this summer.

Appropriations Committee Chairman David Obey, D-Wis., told reporters Tuesday that a provision continuing the moratorium will be dropped this year from a stopgap spending bill to keep the government running after Congress recesses for the election.