Pubdate: Wed, 10 Jun 1998 Source: Los Angeles Times (CA) Contact: 213-237-4712 Website: http://www.latimes.com/ Author: Laurie Kellman, Associated Press Writer SENATE ADOPTS ANTI-DRUG PROPOSAL WASHINGTON--Exploiting a thaw in an icy standoff between Senate leaders, the White House and tobacco bill supporters are trying to save the legislation from collapse with an amendment that would give tax cuts to some married people and self-employed workers."Reports of the death of this legislation are premature," Sen. John McCain, the tobacco bill's sponsor, declared late Tuesday only hours after Senate leaders suggested scrapping the measure. Still he warned, the bill has yet to be revived. "We certainly by no means have total confidence that we will reach a successful conclusion," McCain, R-Ariz., added. But word of a deal on a tax cut amendment considerably brightened the bill's prospects late Tuesday. "I do believe that the possibility of getting a comprehensive bill out of the Senate is greater now than it was this morning," President Clinton told reporters, shortly after speaking with Senate Majority Leader Trent Lott, R-Miss., and Minority Leader Tom Daschle, D-S.D. Lott was less optimistic about completing action. "This gets us started in that direction," he said on the Senate floor. McCain's bill would charge tobacco companies $516 billion over 25 years, raise cigarette taxes by $1.10 a pack and allow the Food and Drug Administration to regulate nicotine. In the bill's third week of debate, the stalemate over procedure cracked Tuesday afternoon when a Democratic motion to bring the measure to a final vote failed. Within minutes, Republicans and Democrats reached agreement on several of the procedural matters that had split them. Reaching a deal among the GOP on what kind of tax cut to offer was a significant step, since Republicans have disagreed on the terms of that cornerstone of their political message. The deal also represented the GOP's determination to claim some credit this election year for legislation that Clinton has demanded. Sponsored by senior Republicans led by Sen. Phil Gramm of Texas, the amendment calls for spending $46 billion over 10 years of the money raised by the McCain bill to end the income tax "marriage penalty" and help the self-employed pay for health care. The marriage penalty is the extra income tax many married people pay that they would not owe if they were still single. Though Democrats have not signed on to the amendment, one senior aide late Tuesday said that in principle, the GOP plan "appeared to be something that a majority of Democrats could support." Other Democrats predicted that the bill will include a tax cut. "We're not in any way adverse to a marriage penalty reduction," Daschle told reporters. One administration official, speaking on condition of anonymity, said the White House was likely to express concern that the anti-drug and tax cut provisions would absorb a significant portion of the money generated by the bill. Still, this official said, neither the president nor his aides will issue a veto threat. Earlier Tuesday, the Senate voted along party lines to adopt a Republican anti-drug proposal, sponsored by Sens. Paul Coverdell, R-Ga., Larry Craig, R-Idaho, that Lott has said was crucial if McCain's bill is to clear the Senate. By 52/46, senators voted to spend $15 billion over five years of the money raised by McCain's bill to increase funding for drug interdiction and allow students who have been victims of drug crimes to switch schools. All 52 votes in favor came from Republicans; 44 Democrats and Republican Sens. John Chafee of Rhode Island and James Jeffords of Vermont voted against. A subsequent attempt by Democrats to substitute their own anti-drug proposal was defeated along party lines. Despite the progress, Democrats still intend to try to choke off debate with votes set for today and Thursday to bring McCain's bill to a final vote. Most GOP lawmakers are expected to vote against such proposals, and Democrats said that would give them fodder for campaign commercials if talks fail. Copyright Los Angeles Times - ---