CAPITOL ACTION

	July 14, 2000
	A tax vote at the capitol. Kwame Holman reports.

KWAME HOLMAN: When they broke for their recent week-long holiday recess, Republicans in the House of Representatives believed they indeed had something to celebrate. During the weeks and months before, they had pushed through their version of a prescription drug plan for seniors, led the effort to approve permanent normal trade relations for China, passed a minimum wage increase coupled with a series of business tax breaks, drew broad Democratic support to grant tax relief from the marriage penalty, and to repeal estate taxes over ten years. The House of Representatives operates under rules that allow the majority party to bring to the floor, debate, and vote on legislation within a matter of hours. In the Senate, however, that process can take days, even weeks because, in truth, little can be done without the cooperation of the minority. That's the main reason the Senate hadn't acted on any of those issues approved by the House. (Laughter) And so on Tuesday when he outlined the week ahead before a crowd of Capitol Hill reporters, Majority Leader Trent Lott only could hope the Senate would act on even one of those issues. SEN. TRENT LOTT, Majority Leader: A major portion of the week will be used to try to get to a direct vote on eliminating the death tax penalty that is very unfair, that Senators on both sides of the aisle say they're for, but we have not been able to get Democrats to move to that legislation. KWAME HOLMAN: The estate tax is levied at escalating rates of up to 55% on estates valued at more than $675,000. SEN. TRENT LOTT: Why should the government come in and say give me half of everything you've inherited or earned all of your life? It's just basically alien to the American way of thinking. KWAME HOLMAN: Lott called on Arizona's John Kyl to explain why the Democrats might be delaying it. SEN. JON KYL, (R) Arizona: They know this is a popular issue. They know that the death tax passed the House with a veto proof margin. They realize there is bipartisan support for this - the Kyle-Kerrey bill for repeal has nine Democrat cosponsors -- and so their intention here is to try not to ever have to face up to a vote on it. And the way they're trying to do that is to throw in the kitchen sink to require that we debate and vote on everything that is on their agenda in an effort to confuse the issue, change the subject, and deflect attention from what is the people's business, the repeal of the death tax. KWAME HOLMAN: Minority leader Tom Daschle chose to explain the Democratic position himself. SEN. TOM DASCHLE: As you may know that, at least up until now, the Republicans have refused to allow even a limited number of amendments that are not "relevant" as we define it. We would like to say, if you're going to spend $750 billion in a full ten-year period, you don't have to spend it all on an estate-tax repeal. You can deal with estate-tax repeal and deal with the array of other issues. KWAME HOLMAN: But without an agreement to proceed, debate on the estate tax simply was used to fill time on the Senate floor, giving members a chance to hone their arguments. SEN. PHILL GRAMM, (R) Texas: No issue better defines the difference between the two political parties than this issue. And let me say I would be prepared to have every election in American history determined on this issue and this issue alone. KWAME HOLMAN: Most Democrats said they welcomed a change in estate taxes, but favored reducing rather than eliminating them. SEN. CHARLES SCHUMER, (D) New York: Only 2% of Americans are affected. And then, of the 2% who pay, the very wealthiest-- the billionaires-- pay a huge proportion of that tax. KWAME HOLMAN: Democrats also charged Republicans had their priorities wrong. SEN. BYRON DORGAN, (D) North Dakota: There is not the time or the energy or the inspiration on the part of those who control the agenda in the Senate to have a real debate about protecting people against HMO's that are taking advantage of them in this system, to try to pass a patients' bill of rights. No, there is not time for that - to decide that we ought to work to put a prescription drug benefit in the Medicare program? No, not quite enough time for that either. KWAME HOLMAN: Even Vice President Gore joined in the condemnation of the Republican Congress from the campaign trail. AL GORE: This do-nothing-for-the- people Republican Congress should finally do something to invest more in education, to hire new teachers and raise standards along with resources available top reduce class size and help our children learn. KWAME HOLMAN: That attack brought majority leader Lott back to the microphones. SEN. TRENT LOTT: This is an absentee Vice President. He's not here. He never meets with the leadership on the majority side. I cannot recall having received a call, an inquiry, or anything from Vice President Gore in months, if not years. I would suggest that he give a ring to the Senate Democrats and say quit slow-rolling and blocking every effort that's being made to cut the tax burden on the American people and to reduce the national debt. KWAME HOLMAN: Lott said he'd continue to negotiate with Minority Leader Daschle to try to structure a debate on the estate tax legislation and limit the number of amendments. SEN. TRENT LOTT: I'm still pursuing it, and I appreciate you all giving me the opportunity… KWAME HOLMAN: A month ago, relations between Lott and Daschle had developed a thin coating of ice as the two bickered almost daily over legislative priorities, but mid-day Wednesday, and to the surprise of Texas Republican Kay Bailey Hutchison, a sudden agreement. SEN. KAY BAILEY HUTCHISON: We have been stuck in that number -- SEN. TRENT LOTT: Mr. President , would the Senator take this yield - and I apologize - SEN. KAY BAILEY HUTCHISON: I'd be happy to yield. I'd bee happy to yield. SEN. TRENT LOTT: -- but we have a unanimous consent decree we've been working on. KWAME HOLMAN: Lott announced that he and Daschle finally had agreed to move toward a final vote on the estate tax repeal and consider no more than ten amendments per side in the process. Daschle was satisfied. SEN. TOM DASCHLE: Mr. President, while the Majority Leader and I have profound differences of opinion with regard to the estate tax and what's due in estate tax policy, I have been very appreciative of his willingness to work with us to accommodate the opportunity for senators to offer amendments, which is what this agreement will allow. KWAME HOLMAN: All day Thursday Senators proposed amendments to create savings accounts for children, money for college tuition tax credits, money for prescription drugs for seniors, to repeal the gas tax, to repeal the phone tax -- amendments all unrelated to the estate tax. Some passed, most didn't. It didn't matter. The Senate eventually voted to strip away all amendments and this morning taxed the same estate tax repeal that the House had. SPOKESMAN: The yeas -- the bill is agreed to. KWAME HOLMAN: Following the vote, Democrats agreed to roll right into a debate on reducing the marriage penalty tax with votes on Monday. But President Clinton has promised to veto both bills, and it's unlikely both Houses of Congress will override the vetoes.