October 27, 2000

Congress continued moving slowly toward adjournment, as new veto threats against tax and spending legislation threatened lawmakers' plans to go home for the final days of pre-election campaigning. Although the agriculture spending bill has been passed and sent to the White House, where a presidential signature is expected, some agricultural issues remain alive.

The House on Thursday began passed a tax package that includes several farm-related changes to the tax code. The bill, which President Clinton has threatened to veto, would defer taxes on up to 20% of net farm income if it was saved in certain accounts. It also ensures that the use of farm income averaging will not trigger the alternative minimum tax.

Leaders in the agriculture committees of both chambers continued feverish work on an overhaul of commodity futures laws, though prospects for an agreement remained uncertain. The bill has passed the House, but Senate Banking Committee Chairman Phil Gramm (R-TX) has insisted on changes before he will allow Senate consideration. With the protracted Congressional session now likely to stretch into next week, negotiators may have a bit more time to reach agreement on the landmark but highly complex legislation.