Thursday, June 17, 2004
Copyright © Las Vegas Review-Journal
House votes to permit contract
Visitor-tracking deal valued at $10 billion over next 10 years
By ALAN FRAM
THE ASSOCIATED PRESS
WASHINGTON -- A drive to block a massive federal contract awarded to Accenture LLP for tracking visiting foreigners was all but scuttled Wednesday by the House, despite arguments that the company should be punished for avoiding some U.S. taxes.
The near party-line 234-197 vote by the GOP-led chamber meant that language disallowing the contract, valued at up to $10 billion over the next decade, was likely to be removed later this week from a $32 billion bill financing the Homeland Security Department. Nevada Republicans Jim Gibbons and Jon Porter voted with the majority while Nevada Democrat Shelley Berkley voted with the minority.
The Accenture contract would benefit a wide array of subcontractors and is strongly supported by the business community and the House Republican leadership. Accenture opponents say the company shrunk its tax bill by moving its headquarters to Bermuda. But they acknowledged they face an uphill fight and were hoping the Senate would keep the issue alive.
"These companies have an obligation to the United States of America to pay their taxes," said Rep. Rosa DeLauro, D-Conn. "If you want to feed at the public trough, you have to pay your taxes."
The vote came as Congress belatedly plunged into its budget work for 2005. Leaders hope to finish as many of the 13 annual spending bills as they can by the Oct. 1 start of the government's new fiscal year. Lawmakers took action on everything from adding money for U.S. diplomats in Iraq to ending the U.S. Capitol Police's new mounted police force.
The Accenture vote was no surprise; similar provisions have been killed or weakened over the past two years.
In other work Wednesday:
• The House voted 241-185 to raise the National Endowment of the Arts budget to $131 million. That is $10 million more than the House Appropriations Committee approved but still below the $139 million President Bush proposed.
• The House Appropriations Committee approved a $416.9 billion defense measure, including $50 billion for military operations in Iraq and Afghanistan.
• A subcommittee of the Senate Appropriations Committee approved a $32 billion measure for the Homeland Security Department that adds money for protecting rail systems Bush did not request.
• A House Appropriations subcommittee approved $2.8 billion for Congress' own operations, excluding Senate money that chamber will add later.
