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Senate Leaders Agree on Plan to Vote on Small Business Bill, Gas Tax Repeal

Tuesday, June 25, 1996

Deloitte & Touche OnLine

Senate Democrats and Republicans reached an agreement June 25 that establishes a procedure under which the Senate will vote on the small business tax incentive bill (HR 3448), the gasoline excise tax repeal bill (HR 3415), the minimum wage increase, and labor reform proposals.

An agreement to bring the measures to the floor for a vote had been elusive and Senate Majority Leader Trent Lott, R-Miss., and Senate Minority Leader Tom Daschle, D-S.D., negotiated the deal over several days.

Reaching an agreement on the procedure does not guarantee that the measures will pass, since the minimum wage increase and other items are considered controversial and may end up being voted down or vetoed by the President.

"I’m sure there are a lot of Senators not entirely happy with this," Lott said on the Senate floor. Echoing the somber tone, Daschle said, "This will help us move the process forward."

Under the framework for debate, the Senate will debate the small business tax incentive bill passed by the Senate Finance Committee on July 8 with one amendment from Democrats and one from Republicans allowed. Then on July 9, the Senate will debate the minimum wage portion of the bill and then vote on final passage. It is unclear what amendments will be offered on the floor.

Bill's provisions

The small business tax incentive bill among other things would extend various expiring tax provisions (such as employer-assisted tuition assistance), increase the expensing limitations for small businesses (from $17,500 to $25,000), and phase-out the possessions tax credit (a tax break for American companies that set up manufacturing facilities in U.S.-owned possessions such as Puerto Rico).

Next, the Senate will debate the gasoline excise tax repeal, which Daschle said can be approved only if the minimum wage increase also is approved.

The procedure did not address the impasse over the health insurance reform bill (HR 3103), which is encountering strong opposition in the Senate over the inclusion of Medical Savings Accounts in the measure.

Lott and Daschle said they will continue to work toward an agreement on that bill beyond the Wednesday deadline Lott had set for reaching a pact.