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Senate passes on tax break for state(Tulsa World (OK) (KRT) Via Thomson Dialog NewsEdge) Aug. 6--WASHINGTON -- Efforts to revive a tax break credited with generating millions of dollars in investments in Oklahoma were derailed again as the U.S. Senate adjourned Friday without approving a controversial tax bill. Sen. Jim Inhofe, R-Okla., expressed optimism that the bill will get another chance when the Senate reconvenes in September. "It is very, very important to Oklahoma," Inhofe said. "We are going to make sure it happens." Approved initially by Congress in 1997, the legislation grants tax incentives to companies doing business on former American Indian land across the state. Roughly two-thirds of Oklahoma qualifies for the tax break. Members of Oklahoma's congressional delegation had hoped to have legislation renewing the temporary tax incentive passed last year, but that effort failed and it expired Dec. 31, 2005. Along with other popular tax breaks, the provision was included in a controversial bill that also would raise the federal minimum wage and reduce the estate tax. That bill passed the House last week, but Senate Democrats late Thursday successfully blocked it on a procedural vote. Republican supporters fell a few votes short of the 60 they needed to cut off debate. Inhofe, who had introduced a freestanding bill to make the Oklahoma tax credit permanent but was unable to have his measure considered, said Republicans will use the August break to pressure certain Democrats to change their vote. "Democrats who blocked it will go home and will have to face their farmers on inheritance tax changes," he said. "We have some targets out there on certain Democrats from agriculture states that we are really going to put some heat on." Essentially, the tax breaks became just collateral damage. Democrats voted against the bill because Republican leaders linked the minimum wage hike to the estate tax cut. Sen. Edward Kennedy, D-Mass., compared that approach to political blackmail and added that lawmakers will get their annual pay raise with no strings attached. For Rep. John Sullivan, R-Okla., who had pushed the renewal of the Oklahoma tax credit in the House, the Senate's failure to approve the legislation was at least the second time his efforts had been derailed. "After working tirelessly with House Ways and Means Chairman Bill Thomas and House leadership to ensure House passage of the Indian land tax incentives, I am extremely disappointed that the Senate will not vote on these tax extensions prior to their adjournment for August recess," Sullivan said Friday. "However, I remain hopeful that these important tax incentives will be extended before the end of the year." He called the tax break an important tool that will help businesses invest in Oklahoma. Although optimistic that the tax bill will get another chance for passage before this Congress adjourns for good, Inhofe said he worries that some will move to take the tax extension provisions out of the legislation to win more votes "So my job is to make sure we leave them in," he said. Rep. Dan Boren, D-Okla., also had supported the effort to renew the tax credit in Oklahoma. Boren believes that the tax credit gives the state an edge in attracting business. |