Education Tax Breaks Clear Senate but Face Veto

A bill giving tax breaks to parents who send their children to private schools cleared the Senate on Wednesday but by too narrow a margin to overcome the veto President Clinton has promised.

Although the bill, which was approved 59 to 36, received some bipartisan support, most Democrats called its benefits meager and the plan itself hypocritical, considering the large cuts in federal education spending wanted by House Republicans. Democrats instead urged support for Clinton’s $12-billion, five-year proposals to build schools, hire teachers and expand after-school programs.

The $1.5 billion in breaks would lead to private savings of $12 billion, benefiting 20 million school-age children, said Sen. Paul Coverdell (R-Ga.), a sponsor of the measure.

The expenses covered by the expanded savings accounts would include public school costs such as private tutors, home computers, supplies and transportation. Backers said most of the families taking advantage of the tax breaks would have children in public schools.

But opponents stressed that more than half of the $1.5 billion in breaks over 10 years would go to people with higher incomes. The accounts are available to couples earning up to $150,000 and individuals up to $110,000.

The House vote on the same bill last week was a more partisan 225-197, and a two-thirds majority is needed to override a veto.