Foley Says Tax Relief No Longer Likely This Year
House Speaker Thomas S. Foley (D-Wash.) said yesterday it appears unlikely Congress will vote on a major tax-relief package this year, largely because of strong opposition from President Bush and House Republicans.</br></br>However, Democratic and Republican congressional leaders made headway yesterday in fashioning a compromise bill to provide extended benefits to millions of unemployed workers who have exhausted their unemployment insurance, according to sources.</br></br>Negotiators are focusing on a proposal by Senate Finance Committee Chairman Lloyd Bentsen (D-Tex.) to cover about two-thirds of the $5.2 billion cost of the unemployment benefits by closing a loophole for upper-income people who make quarterly estimated payments of their income tax.</br></br>Foley pledged yesterday to push through another unemployment insurance bill - with or without the administration's support - before Congress adjourns for the year around Thanksgiving, but virtually ruled out action on a major tax bill.</br></br>"It's very clear that the signal has gone out from the White House to resist and oppose any reductions in taxes as a part of dealing with the recovery, or as a part of providing tax fairness," Foley told reporters. "I regret that, but it's very clear that's the case, and under those circumstances the enactment of such a tax bill will be extraordinarily difficult if not impossible."