Or, Maybe Not...

House, Senate Hit Snag in Tax Cut Deal

An "understanding" between the U.S. House of Representatives and Senate on a $382.8 billion tax cut package President Bush (news - web sites) says will boost the economy lacks sufficient support in the Senate to pass, Senate Republican aides said on Wednesday. Senate Finance Committee Chairman Charles Grassley, an Iowa Republican, told House Ways and Means Committee Chairman Bill Thomas that the tentative agreement outlined earlier on Wednesday could not pass because the total tops the $350 billion limit set by the Senate. Thomas left the meeting in anger, a Senate aide said. "It was a real snot-flinger of a meltdown," he said. Thomas told reporters he believed he had an understanding with Grassley for $350 billion in tax cuts plus $20 billion in state aid and $11.9 billion in child tax credit refunds that are categorized as spending The Senate has asked for some fine-tuning of the package to bring its total cost within the $350 billion. Without that, Senate Republican leaders could lose crucial votes of moderates who believe anything bigger would add to budget deficits. Thomas, who has the backing of his House Republican leaders, will be reluctant to give in to Senate demands to win one or two votes.