WEEK ENDING OCTOBER 22, 1999

• Convert the unified credit into a unified exemption, effective beginning 2001.
  
• Rate reduction provides for:
  Repeal "5-percent bubble" which phases out the benefit of the graduated rates, effective in 2001.
  Reduce top rate to 53 percent in 2001, to 50 percent in 2002.
  Reduce all rates one percent per year beginning in 2003.
  

The White House characterized the bill as a "flawed approach" since it contains "huge tax breaks" that are unrelated to the wage increase and increases the minimum wage over a three year period instead of two. Congressional Democrats attacked the measure as "too little and too loaded down with special interest tax breaks". House Minority Whip David Bonior (D-MI) said, "This issue is too important to working families and should not become a backdoor to a slush fund for special interest."

House Ways and Means Committee postpones markup of minimum wage tax provisions. The House Ways and Means Committee has delayed marking up the tax portion of the minimum wage bill as the House Republican leadership attempts to address concerns raised by Republicans. In order to craft a bill that will have enough support to pass the House, the leadership is engaged in discussions to address concerns about the phase-in schedule of the minimum wage increase and the size of the tax cuts.

Japan to push anti-dumping laws in World Trade Organization (WTO) trade talks. David Aaron, Undersecretary of Commerce for international trade, criticized Japan for attempting to block the new trade round by pushing to include discussions of antidumping laws. Aaron said the Japanese account for over half of the dumping cases filed in the United States. Aaron said, "Their number one goal raises questions as to their real commitment to launching this round, and whether they would rather see it not happen than to see it successfully launched. They [Japan] don't have any positive goals for this round."