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House-Senate Conferees Meet on Tax Bill

Friday, July 11, 1997

OnLine

The House and Senate conference charged with completing work on the fiscal 1998 tax bill (H.R. 2014) met for the first time July 11 and conferees plan to complete their task following the bipartisan approach that resulted in the earlier budget agreement with President Clinton.

"I can safely say that no one sitting here today will get all that they want, but when we’re through...Americans will get what they need: real tax relief," said Senate Finance Committee Chairman William Roth, R-Del., who also heads the conference.

The fates of Congress and President Clinton with regard to the tax bill are tied, House Ways and Means Committee Chairman Bill Archer, R-Texas, said. "I see no reason why we can’t get [our work] done. If we fail, the public will say a pox on all of us--no one should let that happen."

Maintaining a bipartisan spirit is particularly important to congressional leaders because they want to show voters they can govern and work with President Clinton. They are trying to squash any lingering perceptions about their inflexibility, which resulted in the federal government shutting down in late 1995 and early 1996.

Though there was general agreement about the need for bipartisanship, tax cuts, and balancing the federal budget, the conferees differed about the significance of each goal.

Sen. Charles Grassley, R-Iowa, and Rep. Bob Matsui, D-Calif., both conferees, stressed the importance of not increasing the federal budget deficit over the long-term. Other conferees, such as Rep. John Kasich, R-Ohio, who chairs the House Budget Committee, and Rep. Philip Crane, R-Ill., stressed the importance of cutting taxes.

Congressional staffs will work over the weekend to begin hammering out the differences between the House and Senate bills. Congressional leaders have asked the conferees to complete work by June 18, so the final conference report can be approved before the start of the summer congressional recess, scheduled for Aug. 1.

Rep. Jim McDermott, D-Wash., expressed concern about the independent contractor provision in the bill, and Sen. Frank Lautenberg, D-N.J., expressed support for the Senate’s proposed 10 cent increase in the tobacco excise tax.

Democrats Assault GOP Higher Education Provisions: House and Senate Democrats along with an education group berated the tax provisions in the House and Senate bills affecting higher education and graduate education during a press conference July 10.

"The President must draw the line" and ensure that the proper amount of education relief is granted via the bill, Sen. Paul Wellstone, D-Minn., said.

The group asked the tax bill conferees to make the higher-education tax credit refundable and available for four years, and to reject the provision that would treat certain graduate student earnings as taxable income.

The members of Congress present at the press conference included: Reps. David Bonior, D-Mich., Walter Capps, D-Calif., Rosa DeLauro, D-Conn.; Lloyd Doggett, D-Texas; Bob Etheridge, D-N.C.; David Price, D-N.C.; and Lynn Woolsey, D-Calif. Sen. Edward Kennedy, D-Mass., also was present at the press conference.

Senate Panel Approves IRS Funding: The Senate Appropriations Treasury-Postal Subcommittee July 11 unanimously approved the fiscal 1998 measure that provides funds for the Internal Revenue Service.

The mark contains an undisclosed amount for the IRS’s computer modernization effort, but not the $500 million amount requested by the agency, Subcommittee Chairman Sen. Ben Nighthorse Campbell, R-Colo., said.

The House subcommittee with jurisdiction over IRS funding has yet to announce the date of its mark-up.