From AP and UPI
$5.1 billion
jobs bill
stalled in
Senate
WASHINGTON - Senate Republican leader
Howard Baker, frustrated by a dispute over tax
withholding on dividends and interest, yester-
day temporarily pulled a $5.1 billion jobs bill
from the Senate agenda.
The Senate twice rejected moves to limit
debate on the jobs bill, leaving the issue
deadlocked. Baker then reluctantly took the
bill off the floor until tomorrow and moved to
the Social Security rescue bill.
SEN. ROBERT Kasten (R-Wis.), backed by
a banking industry lobbying campaign House
Speaker Thomas O'Neill called "brutal," wan-
ts to attach an amendment repealing
withholding taxes on interest and dividends to
the jobs bill. President Reagan has said he will
veto the bill if the repealer is attached:
Kasten still appeared to hold the aces,
despite the claim of Sen. Robert Dole, chair-
man of the Finance Committee, that "I think
we held off the banker's lobby" by forestalling
action on whether to repeal the new 10 percent
withholding requirement for dividend and in-
terest income. Dole (R-Kan.) has been the
point man for Reagan and the leadership of
both parties in trying to preserve the 1983
change, enacted last year.
The repeal move has broad support in the
Senate and House, but is firmly opposed by
Democratic and Republican leaders who say
its popularity is the result of a multimillion
dollare lobbying and letter-writing campaign
organized by the banking industry.
THE NEXT action on jobs would come at
noon tomorrow when the Senate votes again on
limiting debate.
"We will pass the bill. There is no reason to
sit here in quorum calls and endless efforts to
settle this matter," Baker said.
The Michigan1
At stake beyond the recession relief aspects
of the bill and the withholding battle was con-
tinuation of unemployment benefits for 27
states that run out at the end of tomorrow.
"I WILL DO everything possible to see that
house checks go out Monday,"Baker said, even
if it takes a Saturday session to pass the bill.
Sen. Carl Levin (D-Mich.), whose state is
wracked by unemployment, said Baker in-
dicated to him the trust fund money might be
separated from the jobs bill if necessary.
Congressional leaders who tried mightily to
use parliamentary procedure to prevent a vote
on the withholding repeal conceded they would
have to face the issue eventually and began
talking about marshaling the votes to sustain a
threatened veto.
"I don't see how we can avoid it," said House
Speaker O'Neill.
IN TWO dramatic votes, the Senate rejected
a move to limit debate on the jobs bill itself and
Daily-Thursday, March 17, 1983-Pagej-
kill the Kasten amendment and then, by, a
single vote, rejected a move to limit debaten
repeal, which would have forced the vhte
Kasten wanted.
Lost in the withholding battle was jy
discussion of the parent bill, which also con-
tains a grab-bag of public works jois,
emergency food and shelter for victims of the
recession and youth employment job trainig
measures designed to offset the 10.4 perc~nt
unemployment rate.
Before setting the jobs bill aside, a frustraed
Baker said he wanted to talk to Kasten
privately off the Senate floor because, "I am
not sure the rules of the Senate let me say what
I want to say."
Baker recessed the Senate, and he and Dole
tried for a second day to appease Kasten. Like
O'Neill and Reagan, Baker and Dole oppose
repeal.
ritical
statements
, dropped
from EPA
report
(Continued from Page 1)
<gation concerning the allegations and
Dow Chemical."
At the White House, presidential
spokesman Larry Speakes noted the in-
1pector General's investigation and
said if there is evidence of wrongdoing
it will be turned over to the Justice
Department.
HERNANDEZ became acting ad-
ministrator upon the resignation of Anne
Burford last week, and before the Dow
controversy began making front pages
-had been mentioned as a possible
nominee for the post. Burford and the
White House both said they hoped her
departure would quell the controversy
surrounding the agency.
MHernandez said he was concerned the
draft report on dioxin contamination in
Michigan "had not gone through any
kind of rigorous peer review" by other
scientists.
Rep. Donald Albosta, (D-Mich.) then
asked, "What do you consider a good
review, submitting it to one company?"
Hernandez replied that EPA had no
peer review policy at the time.
Meanwhile tests are under way into
reports of above-average incidence of
birth defects in Midland County, home
of Dow Chemical Co., during the early
1970s, state health officials said yester-
day.
Researchers from the Department of
Public Health want to know why 21/2
times more babies were born with cleft
palates in Midland County than the
national average during a five-year
period.
In a related story bills expanding con-
trols over hazardous wastes, dumped
into the environment at the rate of more
than a quarter-billion tons a year, were
~,introduced in both houses of Congress
yesterday on the heels of a report
judging that current laws are
inadequate.
Sen. Gary Hart (D-Colo.), proposed a
bill expanding by almost tenfold the
$1.6 billion "superfund" program to
clean up abandoned waste sites,
:
f0 NpM S
-1
A
'a
Stereo stolen
An early morning robbery on the 300
block of Ashley nabbed $300 worth of
stereo equipment and a cable TV box
:Tuesday. The robbery occurred
sometime between 9 a.m. and noon.
Ann Arbor Police believe a key may
-have been used to gain entry into the
r-ome since there were no signs of for-
ced entry.
-- Halle Czechowski
ANN ARIBOR
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