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American Morning

Senate Hammering Out Tax Proposal

Aired May 22, 2001 - 09:31   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: The tax debate resumes this hour in the Senate. Lawmakers are working on an 11-year, $1.35 trillion tax cut plan. You see a live picture from the floor of the Senate, much more on that as the day goes on.

For the latest -- from the nation's Capitol, let's bring in our Jeanne Meserve. Jeanne, you left my speechless there for a moment. Good morning, good to see you.

JEANNE MESERVE, CNN CORRESPONDENT: It doesn't happen often. Good morning, Daryn. The Senate argued until almost midnight last night. This debate isn't just about money and politics, it's also about endurance.

(BEGIN VIDEO CLIP)

SEN. ROBERT BYRD (D), WEST VIRGINIA: There's no reason why we have to pass this bill tonight, why we have to stay here until midnight, or 1:00 or 2:00 in morning to pass this bill. To begin with, it is a bad bill. It ought not pass.

(LAUGHTER)

(END VIDEO CLIP)

MESERVE: At least 20 more amendments staring them in the face, Senate leader agreed to pull the plug and get back to work this morning. So far, it has been a contentious debate, one amendment after another going down by razor-thin margins.

For example, failing on tie vote, Senator John McCain's plan to cut rates for low-income earners and minimize the benefits for the wealthiest American. A bipartisan amendment to stop the tax cut if the surplus doesn't materialize was defeated 50-49. Architects of the $1.35 trillion tax cut are rallying to keep the bill intact, saying this may be as good as it gets given the political landscape.

(BEGIN VIDEO CLIP)

SEN. TRENT LOTT (R-MS), MAJORITY LEADER: In fact, one of the greatest dangers we face right now is loving it to death, or loading it down.

(END VIDEO CLIP) (BEGIN VIDEO CLIP)

SEN. MAX BAUCUS (D), MONTANA: So I say to my friends, particularly on the Democratic side of the aisle, that there really are two choices: one is to vote against the bill because the tax cut is just too large, a view which I respect; the other is vote for it because it is a lot better what we otherwise would be facing here on the floor.

(END VIDEO CLIP)

MESERVE: Tax cuts supporters are hoping for final passage in the Senate today, then the tough part: working out a compromise with the $1.6 trillion version passed by the House, more in-line with what President Bush wants. Republican leaders hope to get a bill to the president's desk before the Memorial Day congressional recess.

Back to you, Daryn.

KAGAN: Jeanne, thanks. We will be watching it.

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