WEEK ENDING SEPTEMBER 24, 1999

House readies extenders tax bill. In light of the President's veto, House Ways and Means Committee Chairman Bill Archer (R-TX) marked up a small tax bill which renews tax provisions set to expire this year. This "extenders" bill does not include any other tax items. "I want to have as slim a bill as possible," Archer said. Meanwhile, the Senate indicated that it was cautious about moving any tax bill, including the extenders bill. "I'm going to be careful about moving even an extenders bill if it has anything but the bare necessities."

Rep. Dunn eyes vehicle for estate tax elimination. As the estate tax repeal provision included in the tax bill died by veto, Rep. Jennifer Dunn (R-WA) is considering attaching the estate tax phase out to a minimum wage bill that may include tax breaks for small businesses.

U.S. trade deficit surges to record high. Fueled by a surge in imports from Japan, China and Europe, the U.S. trade deficit soared to new heights in July, totaling $25.18 billion. According to the U.S. Commerce Department, auto and auto parts imports hit $13.29 billion for the month. Canada, Japan, and Mexico were the largest importers of motor vehicles respectively. The surging trade deficit could fuel protectionist sentiment on Capitol Hill.

U.S. to encourage further deregulation of Japan's auto parts market. In the coming weeks, the U.S. is expected to submit a deregulation request to the Japanese government. The U.S. will ask for additional deregulation of Japan's auto parts market in this deregulation request. Specifically, the U.S. would like Japan to increase imports of U.S. auto parts and components for installation on Japanese autos. The U.S. is likely to provide Japan with this deregulation request by the end of September.