Corporate tax bill clears major hurdle

WASHINGTON -- The Senate late Sunday resolved a dispute delaying passage of a sweeping corporate tax bill and two spending bills for disaster relief and homeland security, clearing the way for senators to adjourn today to hit the campaign trail.

The agreement removed parliamentary roadblocks thrown up by Sen. Mary Landrieu, D-La., to express her unhappiness that the tax measure did not include pay support for members of the Reserves and National Guard, and by Sen. Tom Harkin, who was blocking passage of two spending bills.

The agreement will allow the Senate to vote today on a bill that will provide $136 billion in new tax breaks for businesses and other groups and $10.1 billion separately to buy out tobacco farmers' government quotas.

It will also allow votes on a bill helping hurricane victims and farmers suffering from drought, flood and other emergencies and a bill to fund homeland security.

Landrieu was seeking to get approval for another bill that would give employers a tax credit if they made up the pay their employees lose when they are called to active duty in the Reserves or National Guard.

Landrieu's proposal would provide a 50 percent tax credit to employers for up to $30,000 in salary payments a year and was estimated to have a $2.5 billion cost over 10 years.

Under the agreement, the Senate will take up and approve on a voice vote today her proposal on active duty pay, sending it to the House.