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House, Senate Begin Floor Action on Tax Bills

Wednesday, June 25, 1997

The Senate June 25 began debate on the fiscal 1998 tax bill (S. 949) and the House approved the rule controlling floor debate on its version of the bill (H.R. 2014).

The House rule, approved 228 to 200, modifies the child tax credit, alters the estimated tax safe harbor, asks the Treasury Department to study the alternative minimum tax depreciation adjustment, changes the airport trust fund excise tax deposit rules, modifies the ethanol tax credit, and changes budget rules regarding the expiring provisions. The changes to the bill made upon approval of the rule were endorsed by House Ways and Means Committee Chairman Bill Archer, R-Texas.

Before voting on final passage of the bill June 26, the House will consider a Democratic alternative. Like the alternative bill that was considered by the House Ways and Means Committee, the measure is expected to be defeated.

Senate Begins Debate

The Senate began debate on the tax bill and an informal list of amendments includes eleven possible items that could be attached to the bill.

The list includes possible amendments from Senate Majority Leader Trent Lott, R-Miss., that would increase the net tax cut to $85 billion, and from Senate Minority Leader Tom Daschle, D-S.D., who would offer the Democratic alternative.

Other amendments on the list would alter the child credit, index the basis in capital assets, and eliminate the requirement that corporate tax shelters be registered.

All the amendments to the bill that will be allowed on the floor must be submitted to the majority leader’s office prior to the start of debate on the measure.

A bipartisan amendment making minor changes to the bill also is expected to be offered by Senate Finance Committee Chairman William Roth, R-Del., and by committee ranking Democrat Sen. Daniel Patrick Moynihan, D-N.Y.

Democratic Alternative

The Democratic substitute, to be offered by Daschle, may provide clues about the administration’s objections to the bill.

The substitute proposes to lower the capital gains tax rate for individuals. The proposal also would provide a 50 % exclusion for start-up firms.

The amendment also addresses the administration’s concern about the language in the House and Senate bill that limits the availability of child credit for those also claiming the dependent care credit and the earned income tax credit.