WASHINGTON-Despite a vow to veto the Republican tax-cut bill when it is sent to the president, the White House Chief of Staff said the Clinton administration will still support the research and development tax credit.
The R&D tax credit is a favorite of the wireless industry and often is listed as a legislative priority.
At RCR’s deadline, the tax-cut bill had not been sent to President Clinton, but such action was considered imminent. The president has 10 days to dispose of bills.
John Podesta made his comments earlier this month at the National Press Club, where he called for more spending in technology, including research, based on his belief it will lead to a better future.
“Economists of all ideological persuasions agree that the government has an important role to play because individual companies can never capture all of the benefits of research. But this year, the Republican-led Congress, to make room for their risky tax plan, is playing politics with science and technology funding,” Podesta said.
Rep. Bill Archer (R-Texas), chairman of the tax-writing House Ways and Means Committee, said vetoing the GOP tax bill would result in vetoing the R&D tax credit.
“One of the key components of the Taxpayer Refund and Relief Act of 1999 is the multiyear extension of the research and experimentation tax credit and the increase in the rates for the alternative incremental research credit,” Archer said.
The debate over the Republican tax plan escalated over Labor Day weekend as both the president and Republicans devoted their weekly radio addresses to the topic. Clinton said he would veto it, while the Republicans tried to garner popular support for their plan.
Podesta, who also took questions Sept. 1 on other issues, refused to say whether the White House would veto the commerce/state/justice appropriations bill if it did not contain language allowing the Federal Communications Commission to take back radio-frequency licenses from bankrupt licensees. Such language is currently in the Senate version of the bill, but is not in the House.
“Well, I’m not going to speculate about that … We’ll make our views known to both sides … I’m not going to start tossing off veto threats this morning on specific provisions,” Podesta said.
The bankruptcy language is expected to be an issue when the House and Senate meet in conference on the legislation, especially given the deal the government signed with Nextel Communications Inc. to buy for $2.1 billion the licenses claimed by NextWave Telecom Inc. at auction, but whose value has been reduced by a bankruptcy judge.
