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Senate majority leader Harry Reid, under pressure to strengthen his own position, believes his refusal to compromise with the Republicans might be the best chance for the Senate's Democratic majority. The strategy may not work at a time when voters are looking for less partisanship and more compromise.

The DemocratsE business-friendly legislative actions in Congress that are proving politically disadvantageous to the RepublicansE traditional image as a business associate is discussed.

Lawmakers in the Democratic and Republican parties of the 110th Congress have leaned toward experienced players with a reputation for cutting deals, raising cash and unifying their colleagues for rough partisan battles. Both parties, for the most part, have turned away from candidates who took strong hard-right or hard-left positions, and who lacked background in top leadership jobs.

Nancy Pelosi (Democrat, California) has portrayed her short list of session-opening priorities as a means for building momentum for a broader political program that is still a work in progress. Pelosi's fast-track agenda emulates the strategy used by the GOP to quickly move measures with bipartisan support in the first session of the 109th Congress.

House Republican leaders contended with their most politically difficult challenge in years in the week that followed the abrupt resignation of Representative Mark Foley (Republican-Florida). The scandal quickly moved beyond Foley and covered the GOP leadership as a whole, raising questions about whether the response to his behavior had been timely or appropriate and casting doubts on the ability of Speaker J. Dennis Hastert and others to manage the party.

The overhauling of the federal tax policy may help the GOP candidates in the 2006 elections. The proposal for the restructuring of the federal tax law is reported.

It was very easy for the GOP leaders getting Democrats to support the $146 billion in middle-class tax cuts. However, picking the winners and losers in their corporate tax bill is going to be very hard for GOP leaders, but it might be made easily after the polls close.

Senate Republican moderates have blocked an ultimate bid by House and Senate GOP leaders to clear a fiscal 2005 budget resolution that was intended to help advance a limited economic agenda and show voters they could govern. The failure to adopt the tax and spending blueprint would be a major setback for a Republican majority and for congressional leaders, as only few senators are willing to vote to adopt the budget.

The fiscal 2005 budget proposes $2.36 trillion in new spending and the actual outlays, which include spending approved in prior years, are estimated at $2.40 trillion and each year from 2004 through 2009,the administration forecasts that outlays will exceed revenues, with budget deficits totaling to $1.87 trillion. GOP allies acknowledge that one of the central goals of extending the 2001 and 2003 tax cuts indefinitely is unattainable, and many budget insiders predict that Congress will not accept President George W. Bush's demands on appropriations.

An improving US economy will not forestall a deficit that is projected to be $521 billion in the fiscal 2005 budget and President George W. Bush's request for tight domestic spending limits and additional tax cuts is unlikely to create the required Republican enthusiasm for the White House economic agenda. The Democrats are prepared to attack President Bush's budget and the attempt by the Republicans to implement it by accusations of important programs being given up in pursuance of more tax cuts.

The oil industry is lobbing in Congress to pass legislation that lowers royalty fees, gives it tax -credits for marginal operations, enables them to merge easily, and eliminates economic sanctions against oil-rich countries such as Iran and Azerbaijan. The oil industry in the 1990s has been suffering from low prices, the vast new oil fields, and increased competition.

Walt Disney Co. chairman Michael D. Eisner in Aug 1998 visited Senate Majority Leader Trent Lott to discuss the copyright bill that will prevent Disney's Mickey Mouse and other cartoon characters from being duplicated. Lott agreed with him and extended his support for the copyright bill that will grant Disney exclusive rights for another generation. Many insiders point that unlike Hollywood where Democrats have dominated, Disney does not favor one party.

The six-year, $217.9 bil Transportation Efficacy Act for the 21st Century provides a 40% increase in spending to improve highways and mass transit systems in the US. The debate in Congress involved the division of money among states and the size of the increase. Although critics contend it is a 'pork barrel' bill, supporters believe it will create thousands of jobs and give states more money to repair the nation's roads.

Congress is debating a record $100-billion transportation bill in 1988 for federal maintenance and road repairs, but critics claim their six year outlook does not address long-range solutions. The American Society of Civil Engineers claims it will take $437 billion to completely repair the nation's roads.

The merits of two transportation bills to increase highway and mass transit spending by 40 percent are scheduled for debate in Apr 1998 by House and Senate negotiators. The bills, House and Senate versions of HR 2400, offer differing approaches to program spending and revenue-raising proposals, which must be met in accordance with the 1997 balanced-budget amendment.

The breakfast meetings initiated by Joseph I. Lieberman that appear to be making for more cordial relations and votes for smoother functioning in the House are discussed.

A bill cleared by Congress to increase disclosure for lobbying activities and for insertion of earmarks in legislation is presented. It also slows down the 'revolving door' or transition of former lawmakers to lobbying activities.

The demand for Democratic lawmakers in lobbying firms is slowing down the promised legislation on lobbying restrictions by Democrats in Congress.

The new House Ways and Means Committee Chairman Charles B. Rangel is placing groundwork for a repeal of the alternative minimum tax (AMT). Rangel needs to eliminate some of the annual tax breaks for businesses and individuals while increasing tax rates for the upper-income families.

The first-ever raid of a congressional office by law enforcement agents have enraged the Capitol Hill leaders of both parties, pressurizing the president George W. Bush to order the results of the FBI search sealed for six weeks. The raid was conducted on the office of Rep. William J. Jefferson, Democrat-Louisiana who is the subject of a long federal probe into allegations that he demanded and accepted bribes from business associates in exchange for his help in establishing telecommunications deals in Africa.

Texas Republican and House majority leader Tom DeLay fell into an ethics scandal that led to investigations by the Justice Department, the House Ethics Committee and a determined district attorney who has openly expressed his hostility towards DeLay and his fundraising operations in the state. DeLay's stock started falling in ways that were evident to the White House but not to DeLay.

The main outcome of the President George W. Bush's social security debate might not affect corporate profits to a large extent. Business groups and those allied with business have formed many coalitions to promote the transformation of Social Security into personal retirement accounts, but they are waiting for more details before endorsing any specific plan.

Tom DeLay's GOP colleagues are publicly defending him, whereas some of the Republicans are questioning about whether he would prove too controversial and polarizing a figure to ever serve as Speaker of the House. The House ethics committee has reprimanded DeLay for the third time for exceeding the bounds of acceptable behavior in promoting his political and legislative agenda.

The Democrats are facing a tough choice in supporting or opposing the President George W. Bush's $130 billion proposal to extend for five years several tax breaks for families that expire at the end of 2004. Tax cut advocacy group have suggested that a two-year extension might be a better choice for the Republicans, as it would ensure that lawmakers consider legislation in the next session to prevent the tax breaks from expiring again.

The Republicans are trying for the extension of middle-income tax cuts, and the Democrats are proposing higher rates for wealthier taxpayers. Both the parties are competing to be the champion of the middle class as the 2004 election campaign is intensifying.

Differing approaches to tax cuts for owners of small businesses threaten the viability of the corporate tax overhaul bill. Both the George W. Bush administration and the Democratic rivals agree on the need for incentives including tax cuts for small businesses, but they are engaged in a dispute over the structure of the tax breaks essentially whether to extend GOP cuts to all taxpayers or scale them back to finance new incentives including some for small companies.

The GOP comfortably passed its corporate tax bill in the House with a wave of support from Democrats who wanted to back narrow provisions targeted to their districts. However, whether the Democrats can extend that support to the $150 billion measure produced in conference is awaited.

Both the Republicans and the Democrats are seeking new ideas, including tax cuts for workers, tax increases for the wealthy and new fees or taxes to broaden the revenue base, designed to provide attractive benefits to voters without worsening the deficit. There are also proposals to make changes in the federal income tax or replace it with a different source of revenue, but any real restructuring has little chance of moving in 2004.

The senators have submitted amendments proposing new tax provisions, as the party leaders and tax writers are attempting to keep the corporate tax package from increasing the budget deficit, during its debate on March 3, 2005. House Ways and Means Chairman has outlined a new version of the corporate tax overhaul bill, which would provide about $113 billion in business tax breaks over the next 10 years.

Congressional leaders are considering moving through both chambers a series of measures that would extend popular tax cuts in the election-year with the political calculation that narrower bills will satisfy deficit-conscious the Republicans and appeal to the Democrats. The idea of `bite-sized' tax bill came up after President George W. Bush offered an ambitious election-year tax-cutting agenda as part of his fiscal 2005 proposal, featuring a tax cut total of $1.2 trillion over a period of ten years ending fiscal 2014.

Democratic Senator, Jon Corzine, argues that the 2004 budget shortfall of $475 billion or 4.2% of the gross national product (GDP) is too large and will draw off private capital needed for business investment. But former deficit hawks support the White House's theory that tax cuts will eventually offset the deficit by spurring economic growth and after the 9/11 terrorist attack and decline in the stock market, business leaders are also likely to support tax cuts instead of demanding fiscally responsible measures that might interrupt the economic recovery.