AIADA - Publications - TWW October 8, 1999

WEEK ENDING OCTOBER 8, 1999

Draft Minimum Wage bill includes
Estate Tax Phase Out

A bipartisan group drafts Minimum Wage bill, including estate tax relief. Draft legislation to increase the federal minimum wage includes certain tax reductions to make the measure more palatable to Republicans. A provision to phase out the estate tax over five years is included in the draft bill sponsored by Rep. Rick Lazio (R-NY). "This approach provides relief to the businesses that are likely to pay the wage hike," Lazio said. "It's about $2 of tax relief for every dollar it's costing business."

Rep. Lazio and a bipartisan group of Representatives are expected to unveil the bill sometime next week, possibly as early as Tuesday. A GOP aide predicted that the bill could reach the House floor as early as the week of October 18. With the outlook for major tax legislation unlikely, the minimum wage bill may be the only opportunity for tax relief this session.

White House reaction to minimum wage/tax bill uncertain. The White House had no immediate response to the minimum wage/tax bill being drafted by Rep. Lazio. However, the White House has said that any tax bill must be fully paid for or face a certain veto.

U.S., Japan hold auto talks. Officials from the U.S. and Japan met in Canada this week to discuss auto and auto parts issues.

According to reports, the two sides had no specific agenda but the U.S. hoped to "exchange information" on the following issues:

distribution of Big Three vehicles in Japan
Japanese purchase of U.S. auto parts
Japanese purchases of U.S. auto parts at their U.S. production facilities
Japan's deregulation efforts

Japanese officials also expected the U.S. to address the 1995 U.S.-Japan Auto Agreement which averted 100 percent tariffs on Japanese luxury autos. The agreement expires at the end of 2000.

Rep. Levin forming House trade advisory group. With the declaration that "no one is ready" for the upcoming World Trade Organization Ministerial in Seattle, Rep. Sander Levin (D-MI) is forming a House trade advisory group to advise the Administration on trade policy.

QUOTE OF THE WEEK: "The polls have come out incredibly well."
Possible Reform Party Presidential
candidate Donald Trump citing a poll
by The National Enquirer

Draft Minimum Wage bill includesEstate Tax Phase Out

Draft Minimum Wage bill includes
Estate Tax Phase Out