Senate Tries to Revive Stalled Tobacco Bill

Senate leaders are trying to revive a stalled tobacco bill with an attack on the “marriage penalty,” which forces some married couples to pay more taxes than they would if they were single.

“The tax cut proposals, if they could be added, they would actually improve its chances,” Senate Majority Leader Trent Lott (R-Miss.) said.

The negotiations began with an amendment sponsored by Republican Sens. Phil Gramm of Texas and Pete V. Domenici of New Mexico to eliminate the so-called marriage penalty. The loss in revenue would be made up from money cigarette manufacturers would pay the government under a tobacco bill written largely by Sen. John McCain (R-Ariz.).

Gramm, McCain and Senate Democratic leaders met several times Tuesday, emerging with an outline of a plan to phase out the marriage penalty over 12 years--but only for couples whose joint annual income is less than $50,000. Gramm estimated the cost at $16.8 billion for the first five years.

Democrats, who have panned previous marriage penalty bills for targeting mostly high-income Americans, reacted to the amendment with enthusiasm.

“If there is a way for us to reach bipartisan consensus, I want to do it,” Senate Minority Leader Tom Daschle (D-S.D.) said. “I can count votes.”

McCain said he would try to limit debate and bring the bill to a final vote next week, while President Clinton was expected to turn up the pressure on Congress to act.

The bill would generate a half-trillion dollars for the government, in part by raising taxes on cigarettes by $1.10 a pack, anathema to the GOP’s lower-taxes smaller-government campaign pledge.