Despite extensive Congressional discussion of tax-reform legislation, only a relatively minor tax bill likely will be passed by the 105th Congress after it returns to Washington Sept. 7 for its final four weeks, indicates the National Assn. of Manufacturers (NAM).
Monica McGuire, NAM's senior policy director for taxation, says the shortness of the remaining Congressional session, splits in the Republican leadership over tax cuts, and the likelihood that it would be loaded up with non-germane issues "work against passage of a large tax bill." She also said that because of his legal difficulties, President Clinton won't have time to devote the leadership necessary to obtain passage of a large measure.
McGuire is optimistic, however, that a small bill extending the corporate R&D tax credit, the tax credit for corporate charitable contributions of stock, and other expiring provisions in the current tax code will be enacted.
The outlook also is promising for passage of a bill that would put a moratorium on an Internet tax to allow lawmakers to study how electronic commerce should be taxed, adds Dorothy Coleman, another NAM tax lobbyist.