Clinton’s Investment Tax Credit Reported to Be in Jeopardy

President Clinton’s proposed tax break to encourage businesses to buy new machinery and equipment will likely be rejected in Congress, according to a published report.

The New York Times reported in today’s editions that the investment tax credit--intended to stimulate the economy and create jobs--has little support in Congress and among business circles.

If it is rejected, Clinton could end up winning passage of virtually none of his stimulus plan. A GOP filibuster in the Senate has blocked his $16.3-billion spending bill.

Treasury Secretary Lloyd Bentsen has said the tax credit, which would cost the government more than $21 billion in lost revenue over five years, was an integral part of Clinton’s economic package.