NEW TAX DEAL LACKS MAJORITY SUPPORT IN SENATE
May 21, 2003

Legislative Update from FTFA Campaign Manager, Bob Creamer:

Below find the most recent update on the status of the Tax Conference Bill.

A tax cut plan negotiated by the chairmen of the House and Senate tax-writing committees ran into a roadblock today after Senate Republicans concluded they could not muster more than 49 votes for the proposed budget reconciliation conference agreement. Sens. George V. Voinovich, R-Ohio, and Even Bayh, D-Ind., who supported the version of the bill (HR 2) that the Senate passed by a 51-49 margin on May 15, lined up in opposition today to the plan agreed upon by Senate Finance Committee Chairman Charles E. Grassley, R-Iowa, and House Ways and Means Chairman Bill Thomas, R-Calif. The compromise unveiled late last night carries a net price tag of about $382 billion, including about $350 billion in tax cuts, $20 billion in aid to state and local governments and about $12 billion in outlays to make an increased child tax credit refundable to low-income families. All of the revenue-raising tax and user fee increases in the Senate version were dropped. Senate moderates have insisted that the net 11-year cost of the reconciliation package not exceed $350 billion.

The current proposal has now apparently collapsed and now they will presumably attempt to put something else together tonight.

The work of the Coalition putting pressure on Voinovich, Snowe, Nelson, Bayh and Lincoln has been marvelous. There have been thousands of calls and grass tops contacts in the last few days -- and great press work.

All organizations should continue to urge contacts from local affiliates to these key Senators.

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