July 21,1999

Finance Committee Gives Bipartisan Approval to $792 Billion Tax Cut

Kerrey, Breaux Join all GOP Members to Approve Bill

WASHINGTON -- By a vote of 13 to 7 (13-6 without proxy), the Senate Finance Committee today gave bipartisan approval to legislation that would cut taxes by $792 billion over ten years. The proposal, authored by Chairman William V. Roth, Jr. (R-DE) received support from Democratic Senators J. Robert Kerrey (D-NE) and John B. Breaux (D-LA) as well as all eleven Republican members of the panel.

The legislation is expected to be on the floor of the Senate next week.

A list of approved amendments will be released later today.

ATTACHMENTLIST OF APPROVED AMENDMENTS TO

SENATE FINANCE COMMITTEE TAX CUT LEGISLATION

Note: A revenue table on the Chairman's mark, as approved by the Committee with these amendments, will be released later this week. Until then, we do not have revenue estimates on these amendments or their offsets.

1.Grassley: Expand section 45 of the tax code to include open-loop biomass.
Approved 13-7.

2.Conrad:Provide a 10 year recovery period for the depreciation of leasehold improvements.
Approved by voice vote.

3.Mack:Modify and extend D.C. first time homebuyer tax credit.

1. Would eliminate the marriage penalty in the D.C. first time homebuyer tax credit by raising the phase-out for joint filers to $140,000 - $180,000 (from current $110,000 - $130,000)

2. Would extend the D.C. first time homebuyer credit through the end of fiscal year 2001.
Approved by voice vote.

4.Hatch:Make permanent the R and D tax credit. (Chairman's mark has a five year extension of the credit.)
Approved by voice vote.

5.Nickles:Clarifies the application of the seven year cost recovery period for natural gas gathering lines.
Approved by voice vote.

6.Murkowski: Exempt seaplanes from the air passenger ticket tax.

Accepted, subject to review by the Joint Committee on Taxation to determine whether seaplanes use FAA service.