U.S. lawmakers seek agreement on tax, trade issues
06 Dec 2006 18:14:57 GMT Source: Reuters
By Donna Smith WASHINGTON, Dec 6 (Reuters) - Republican congressional leaders tried on Wednesday to resolve differences over trade, tax and health care issues and then pass legislation in the final days before they lose control of the U.S. Congress. As Democrats prepare to take control when the new Congress is seated in January, U.S. House of Representatives and Senate Republican leaders were negotiating a final economic package that will include extending some popular tax breaks for businesses and individuals including a research and development tax credit and a deduction for state and local sales taxes. "I don't think there is an agreement yet," said House Majority Leader John Boehner, an Ohio Republican. Although lawmakers basically agree on the tax package, which would extend a number of tax breaks that expired at the end of 2005, leaders hope to add to that legislation other pressing matters including a bill to open parts of the Gulf of Mexico to new offshore oil and gas drilling. That measure would open 8.3 million acres in the eastern Gulf Of Mexico near Florida. The bill also redistributes billions of dollars in federal royalties to four nearby Gulf Coast states. A major sticking point is how to handle a scheduled pay cut for doctors in the Medicare health care program for the elderly. Lawmakers are considering canceling them, a move that could cost the federal treasury between $10 billion to $12 billion over five years. Lawmakers said they hoped to settle remaining differences and wrap up the post-election session by the end of this week. On another issue, the House was expected to take up a trade package. Retiring House Ways and Means Committee Chairman Bill Thomas, a California Republican, introduced a bill late on Tuesday that includes permanent normal trade relations for Vietnam and some new trade benefits for Haiti. It would be the second attempt by House Republican leaders to approve normal trade relations for Vietnam. The measure failed last month when leaders tried to push it through under a procedure that required more than a simple majority. Congress needs to set aside Cold War trade provisions that require periodic review of Vietnam's record on religious rights and approve permanent normal trade relations. The goal is to allow U.S. farmers, bankers and other businesses to share in the market-opening benefits of Hanoi's entry into the World Trade Organization next month. The House will consider that bill as a separate measure from the tax legislation, but lawmakers said the plan was to unite them as a single bill when it goes before the Senate. "I don't think any of it is unresolvable," said Rep. Adam Putnam, a Florida Republican. "I just think when you deal with things as complicated as a miscellaneous tariff bill, Haiti and its impact on textiles ... we're just trying to move a lot of major items in a short period of time." Another "must-do" measure is legislation to keep the government running into the new year since the current Congress failed to enact nine of 11 spending bills that finance various government programs. A stop-gap spending bill expires on Friday, requiring the extension into the new Congress.
