TOBACCO BILL VEERS INTO DRUG WAR

Congress: The GOP amendment - and an expected one calling for a tax cut -
improve chances for Senate passage.

Washington - The Republican-controlled Senate voted to ratchet up the war
on drugs and eyed an election-year tax cut Tuesday as President Clinton
worked with GOP and Democratic leaders to break a logjam on a tobacco bill.

"Reports of the death of this legislation are premature," Sen. John McCain,
R-Ariz., declared at the end of a long day during which the bill seemed to
hover between breakdown and breakthrough. Still, McCain cautioned, "We
certainly by no means have total confidence that we will reach a successful
conclusion."

The vote was 52-46, along party lines, to adopt the GOP anti-drug proposal
that Majority Leader Trent Lott, R-Miss., had said was essential if the
comprehensive tobacco bill were to clear the Senate. The provision,
estimated to cost $15 billion over five years, would increase money for
drug interdiction, restrict federally backed loans for students convicted
of drug possession and ban federal financing of needle-exchange programs.

A vote on a tax-cut proposal - another key Republican demand - was expected
today, and Democrats conceded it was likely to pass. The most recent
version would provide relief from the income tax "marriage penalty" as well
as help the self-employed pay for health insurance.

Together, the two proposals, both amendments to the tobacco bill,
underscored the election-year determination of Republicans to place their
stamp on a bill the White House and most Democrats supported. For their
part, Democrats served notice that they would continue to force Republicans
to vote to choke off debate on the bill. Most GOP law-makers are expected
to vote against such proposals, and Democrats said that would give them
ammunition for campaign commercials if compromise efforts collapse.

Neither the tax cut nor the anti-drug proposal was contained in the
legislation that McCain brought to the Senate floor more than two weeks ago
with White House backing. But Clinton talked by phone with both Lott and
Senate Democratic leader Tom Daschle during the day and dispatched top aids
to participate in discussions.

And officials signaled they were ready to accept the proposals as part of
the cost of clearing a major tobacco measure.

One administration officials, 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
tobacco bill. Still, this official said, neither the president nor his
aides will issue a veto threat.

As drafted, the legislation would raise the price of a pack of cigarettes
by $1.10, and direct the money toward the states to pay smoking-related
health-care costs and pay for disease research at labs such as the National
Institutes of Health.

Before the drug vote, McCain, the chief architect of the tobacco bill, said
a day of closed-door talks had been beneficial to the bill's chances.

And an aide to Daschle said that with the developments, "the prospects for
the tobacco bill just got much better." The aide, Ranit Schmelzer, added,
"There will likely be a tax cut in this bill."

Lott was not as optimistic in his public comments. "This gets us started in
that direction" of completing action, he said on the Senate floor.

At the White House, Clinton told reporters he had talked by phone with
Daschle and Lott. Asked about the tobacco bill at a news conference, he
said, "There are still problems, to be sure, but we're getting closer to, I
think, a principled compromise. I hope we are."

On the GOP drug package, all 52 votes in favor came from Republicans; 44
Democrats as well as Republicans John Chafee of Rhode Island and James
Jeffords of Vermont voted against.

The principal backers of the GOP proposal were Sens. Paul Coverdell of
Georgia and Larry Craig of Idaho, who argued that any legislation dealing
with cigarette smoking should also address youngsters' drug abuse.

"As bad as tobacco abuse is, it does not cause a mind to pick up a gun and
murder. But drug abuse does," said Coverdell.

The first skirmish of the day was inauspicious for the legislation, as
Democrats lost an early afternoon attempt to choke off debate. The vote was
56-42, 18 shy of the 60 needed to force a final vote, and almost completely
along party lines.

At the same time, Republicans indicated they were ready to scale back the
size of their proposed tax cut in hopes of winning acquiescence from the
White House and congressional Democrats.

Democrats had complained that an earlier GOP tax proposal would have
consumed the bulk of the money to be raised in the bill, leaving an
insufficient amount for states to pay health care costs or for an
anti-smoking campaign.

The behind-the-scenes maneuvering was in contrast to the partisan rhetoric
on the Senate floor on a bill that Democrats said openly they would attempt
to use to political advantage in the fall campaign.

"The tobacco companies have to be cheering after that last vote," Sen.
Richard Durbin, D-Ill., said after Dashcle's attempt to force an end to
debate had failed.

Opponents of the measure were no less scathing.

Sen. Phil Gramm, R-Texas, said the bill would raise and spend hundreds of
billions of dollars over the next 25 years, and for some people would be
like winning a lottery.

"But to blue-collar working Americans who will bear the brunt of this tax,
this is going to be a massive tax increase," he said.