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)