<html><base href=http://biz.yahoo.com><title>Yahoo - Clinton To Propose Steel Tax Relief</title><center><table cellpadding=2 cellspacing=0 width="100%"><tr><td width="1%"><a href="http://quote.yahoo.com/?u"><img src=http://us.yimg.com/i/fi/main4.gif border=0 width=281 height=31 alt="Yahoo! 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Currently, all companies can ``carry back'' losses to previous years for only two years.<p>The administration proposal will expand the ``carry back'' period to five years for steel companies at an estimated cost in lost tax revenue to the government of $300 million over five years. Administration officials said the proposal will be included in Clinton's new budget to be submitted to Congress on Feb. 1.<p>The tax breaks surfaced as the administration struggled to complete a plan this week laying out efforts to combat a surge in imports of cheap steel into the United States following the loss of overseas markets where steep recessions have slashed demand.<p>The administration missed a Tuesday deadline imposed by Congress to complete the plan as it sought to reconcile an internal debate between supporters of the industry's demands for protectionist barriers and other officials led by Treasury Secretary Robert Rubin who argue that such an action would set back efforts to pull Asian nations and Russia out of steep recessions.<p>Sen. Rick Santorum, R-Pa., called the administration's continued delay in producing a report ``disheartening'' at a time when thousands of American jobs were at stake.<p>The steel industry and its unions have already filed three cases against Japan, Russia and Brazil accusing those nations of ``dumping'' steel in this country at unfairly low prices and asking the government to impose penalty tariffs of up to 200 percent on certain types of steel.<p>In addition to the tax relief, administration officials said the Clinton plan would include appointment of a high-level White House coordinator to speed trade adjustment assistance already approved by Congress to steel workers who have been laid off following production cutbacks.<p>But members of Congress from steel producing states were unsatisfied, saying the administration was offering too little to combat a growing problem that has resulted in layoffs and reduced hours for thousands of steel workers and millions of dollars in lost profits for U.S. companies.<p>Just Thursday, Bethlehem Steel announced plans to permanently close its Washington Steel stainless sheet and strip operations, eliminating 540 jobs in Washington, Pa., and Massillon, Ohio. The company cited sustained losses and the impact of ``unfairly traded'' steel imports.<p>Sen. Mike DeWine, R-Ohio, called the administration's proposals so far ``a band-aid solution to a hemorrhaging crisis'' while Rep. Bob Ney, R-Ohio, said: ``The president has clearly turned his back on the steel workers.''<p>Rep. Ralph Regula, a chairman of the Congressional Steel Caucus, called on the administration to negotiate voluntary restraint agreements with foreign steel producers similar to ones negotiated during the Reagan and Bush administrations.<p>While the White House has considered such an approach, the administration is concerned that it would violate World Trade Organization rules.<p>One administration official said the report would underscore efforts to reach a voluntary restraint agreement with Russia, which is permissible under WTO rules because it is classified as a non-market economy.<p>This official said that the report would also hold out a threat of action against Japan unless it lives up to informal pledges it has made to restrain its steel shipments to the United States, which have soared by 480 percent through the first nine months of this year. <P>  <p><hr align=left width="33%" noshade><table border=0 cellpadding=0><tr valign=top><td width="1%" nowrap><b>More Quotes and News:</b></td><td>Bethlehem Steel Corp (NYSE:<a href="http://quote.yahoo.com/q?s=bs&d=t">BS</a> - <a href=/n/b/bs.html>news</a>)</td></tr><tr valign=top><td colspan=2><b>Related News Categories:</b> <a href=/n/y/y0023.html>mining/metals</a></td></tr></table><hr align=left width="33%" noshade><center><form method=get action=http://search.news.yahoo.com/search/news><input size=24 name=p> <input type=submit value="Search News"><input type=hidden name=n value=10> <small><a href=http://www.yahoo.com/docs/info/news_search_help.html>Help</a></small></form><hr><small>Copyright © 1999 The Associated Press. 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