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Final Action on Budget Resolution Delayed

Friday, May 23, 1997

OnLine

An unanticipated dispute over the unrelated emergency spending bill providing relief to disaster victims delayed final action on the budget resolution, which will be put off until the week of June 2, when Congress returns from its Memorial Day recess.

It had been expected that after the Senate passed the resolution, a House-Senate conference would be convened quickly to resolve differences in the measure. The Senate approved the budget resolution 78 to 22 on Friday and the House approved the bill earlier in the week.

A disagreement between the White House and the GOP over whether the emergency spending bill should contain language that would prevent the government from shutting down during budget battles, such as last year, spilled over into the debate on the budget resolution and prevented quick action. Conservatives support the stopgap provision because they fear they will be blamed if the government shuts down.

It is important to remember that the budget resolution only outlines the spending and revenue-raising goals for the upcoming fiscal year. Once the resolution is passed, the House Ways and Means Committee and the Senate Finance Committee will mark up a tax bill that reconciles present law to the revenue figures contained in the budget resolution.

Mark up dates in flux

Congressional leaders continue to discuss the possibility that the deadlines for marking up the tax bill will be delayed. The House-passed version of the resolution currently calls upon the Ways and Means Committee to mark up a tax bill by June 13, and the Senate version currently calls upon the Senate Finance Committee to mark up the bill by June 27.

No one has ruled out the possibility of marking up the bill after the July 4 recess, but congressional leaders are facing some pressure to delay the deadlines, congressional sources said.

During the debate on the resolution, several non-binding tax-related measures were added. Sen. Paul Coverdell, R-Ga., offered an amendment, approved by voice vote, that provides no tax increases should be retroactive except those closing corporate loopholes. Another amendment, offered by Sen. Spencer Abraham, R-Mich., and approved by a 55 to 45 vote, states the Senate view that any unanticipated revenue from the budget resolution should be applied to tax cuts.

Tax bills introduced

Several tax bills were introduced May 21 and 22 by House Ways and Means and Senate Finance Committee members.

House Ways and Means member Rep. Nancy Johnson, R-Conn., May 21 introduced a bill (H.R. 1694) to allow individuals a credit against income tax for certain amounts contributed to an education investment account.

A bill (S.755) to exclude gain or loss from the sale of livestock from the computation of capital gain net income for purposes of the earned income credit was introduced May 21 by Senate Finance Committee member Jim Jeffords, R-Vt.

Senate Minority Leader Tom Daschle, D-S.D., introduced three tax bills May 22: a bill (S.791) to amend the tax treatment of certain amounts received by a cooperative telephone company; a bill (S.790) to allow Indian tribes to receive charitable contributions of inventory; and a bill (S.792) to provide that certain cash rentals of farmland will not cause recapture of special estate tax valuation.