WEEK ENDING JULY 30, 1999

Tax bill conference set for next week. A House-Senate conference to reconcile differences in the two bills is expected to begin next week but may not be completed prior to the August recess. However, according to House Ways and Means Chairman Bill Archer (R-TX), "The speaker wants us to have a conference report available to vote on before we leave next week, and I'm prepared to expend every effort to try and make that happen."

Sen. Gramm amendment including estate tax repeal defeated. Similar to the amendment he offered in the Senate Finance Committee markup of the tax bill, Sen. Phil Gramm (R-TX) offered an amendment to revise the Roth tax bill. Gramm's amendment would have reduced income tax rates by 10 percent across-the-board, repealed the federal estate tax, reduced the marriage penalty and allowed tax deductions for certain health care costs. Gramm's amendment was defeated by a vote of 54 to 46.

Administration promises veto of any tax bill over $300 billion. The Clinton Administration reiterated its promise to veto any tax bill larger than $300 billion. Senate Minority Leader Tom Daschle (D-SD) has stated that the President is not interested in negotiating a larger tax bill and that there will be no compromise tax bill larger than $300 billion.

Tax bill will not be sent to President until after recess. If the House and Senate are able to reconcile the differences in each chamber's tax bill prior to the August recess scheduled to begin August 9, Congress is not expected to send the bill to President Clinton until it returns in September. According to Senate Majority Leader Trent Lott (R-MS), "I don't want [President Clinton] to veto either in the quiet of the night or with great fanfare when we're not here."