Clinton Gives Partial Nod to Senate Tax Proposal

WASHINGTON, D.C.: Congress and the White House moved a step closer to reaching an agreement on a sweeping tax cut package after the Senate Finance Committee proposed a plan which the Clinton Administration considers an improvement over the House bill. The plan, put forward by Senate Finance Committee chair William Roth, received some Administration approval for allocating less than the House version to capital gains tax reductions and for expanding a provision for a tax credit for the first two years of college, a top priority for President Clinton. A number of Senate Democrats lent support to the proposal. Veteran committee member Daniel Patrick Monyihan said he was pleased with provisions which offered a permanent extension of the tax exemption for employer-provided educational assistance and additional financing for Amtrak. But the Clinton Administration still views the legislation has unfairly favoring the wealthy over people with lower incomes. Although the Administration stopped short of threatening a veto, it made clear that these points must be addressed if yet another standoff is to be averted. The Finance Committee begins debate on the bill tomorrow.