ROANOKE TIMES 
                      Copyright (c) 1996, Roanoke Times

DATE: Tuesday, May 14, 1996                  TAG: 9605140058
SECTION: NATIONAL/INTERNATIONAL   PAGE: C-5  EDITION: METRO 
DATELINE: WASHINGTON
SOURCE: Associated Press 

GOP SEEKS TAX EXEMPTION ON TUITION COST

House Republicans have included an exemption for employer-paid tuition in a $5.6 billion package of tax breaks they want to attach to a $1-an-hour increase in the minimum wage.

Renewal of the exemption would allow as many as 800,000 employees to claim it by filing amended returns for 1995. Denied the deduction last year, these employees had to pay taxes on the tuition their employers paid for them.

Republicans would pay for the bulk of the package, which also liberalizes equipment write-offs for small businesses, by phasing out over 10 years a long-standing tax break for manufacturing companies with plants in Puerto Rico and other U.S. territories. The phase-out would save $3.8 billion through 2002.

The Ways and Means Committee is scheduled to vote today on the legislation called the Small Business Job Protection Act.

GOP leaders then would allow moderate Republicans to offer an amendment, raising the minimum wage to $5.25 from $4.25 over 15 months.

``As Congress considers minimum wage legislation that will lead directly to the loss of entry level, low-wage jobs, it's vital we take action to minimize those job losses,'' said Ways and Means Chairman Bill Archer, R-Texas.

Meanwhile Monday, Senate leaders negotiated to break the gridlock that has held sway for several days. Talks were broadened to include House Republicans.

Majority Leader Bob Dole, R-Kan., met with Democratic Leader Tom Daschle to discuss ways to move separate legislation to raise the minimum wage, as Democrats want, and to roll back the federal gasoline tax, as Republicans want.

While there was no agreement by days' end, Dole said if there was an accord, ``we'd do it all tomorrow'' in voting on the Senate floor.

Republicans also want legislation to permit employers to establish groups to discuss labor issues with workers outside the collective bargaining framework. While Democrats oppose that bill, they are expected to let it pass and go to the White House for a veto.

At the same time, Democrats also want to make sure the minimum wage measure is passed without the ``poison pill'' provisions that would draw a veto from the White House, and that it and the gas tax rollback reach the president's desk at the same time.

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