SENATE ADOPTS ANTI-DRUG PROPOSAL

WASHINGTON--Exploiting a thaw in an icy standoff between Senate leaders,
the White House and tobacco bill supporters are trying to save the
legislation from collapse with an amendment that would give tax cuts to
some married people and self-employed workers."Reports of the death of this
legislation are premature," Sen. John McCain, the tobacco bill's sponsor,
declared late Tuesday only hours after Senate leaders suggested scrapping
the measure. Still he warned, the bill has yet to be revived.

"We certainly by no means have total confidence that we will reach a
successful conclusion," McCain, R-Ariz., added.

But word of a deal on a tax cut amendment considerably brightened the
bill's prospects late Tuesday.

"I do believe that the possibility of getting a comprehensive bill out of
the Senate is greater now than it was this morning," President Clinton told
reporters, shortly after speaking with Senate Majority Leader Trent Lott,
R-Miss., and Minority Leader Tom Daschle, D-S.D.

Lott was less optimistic about completing action. "This gets us started in
that direction," he said on the Senate floor.

McCain's bill would charge tobacco companies $516 billion over 25 years,
raise cigarette taxes by $1.10 a pack and allow the Food and Drug
Administration to regulate nicotine.

In the bill's third week of debate, the stalemate over procedure cracked
Tuesday afternoon when a Democratic motion to bring the measure to a final
vote failed. Within minutes, Republicans and Democrats reached agreement on
several of the procedural matters that had split them.

Reaching a deal among the GOP on what kind of tax cut to offer was a
significant step, since Republicans have disagreed on the terms of that
cornerstone of their political message. The deal also represented the GOP's
determination to claim some credit this election year for legislation that
Clinton has demanded.

Sponsored by senior Republicans led by Sen. Phil Gramm of Texas, the
amendment calls for spending $46 billion over 10 years of the money raised
by the McCain bill to end the income tax "marriage penalty" and help the
self-employed pay for health care. The marriage penalty is the extra income
tax many married people pay that they would not owe if they were still
single.

Though Democrats have not signed on to the amendment, one senior aide late
Tuesday said that in principle, the GOP plan "appeared to be something that
a majority of Democrats could support." Other Democrats predicted that the
bill will include a tax cut.

"We're not in any way adverse to a marriage penalty reduction," Daschle
told reporters.

One administration official, speaking on condition of anonymity, said the
White House was likely to express concern that the anti-drug and tax cut
provisions would absorb a significant portion of the money generated by the
bill.

Still, this official said, neither the president nor his aides will issue a
veto threat.

Earlier Tuesday, the Senate voted along party lines to adopt a Republican
anti-drug proposal, sponsored by Sens. Paul Coverdell, R-Ga., Larry Craig,
R-Idaho, that Lott has said was crucial if McCain's bill is to clear the
Senate.

By 52/46, senators voted to spend $15 billion over five years of the money
raised by McCain's bill to increase funding for drug interdiction and allow
students who have been victims of drug crimes to switch schools.

All 52 votes in favor came from Republicans; 44 Democrats and Republican
Sens. John Chafee of Rhode Island and James Jeffords of Vermont voted
against.

A subsequent attempt by Democrats to substitute their own anti-drug
proposal was defeated along party lines.

Despite the progress, Democrats still intend to try to choke off debate
with votes set for today and Thursday to bring McCain's bill to a final
vote.

Most GOP lawmakers are expected to vote against such proposals, and
Democrats said that would give them fodder for campaign commercials if
talks fail.

Copyright Los Angeles Times