As the Senate develops its stimulus package of tax cuts and new spending on infrastructure, a coalition of business groups led by the U.S. Chamber of Commerce is pushing a measure that would allow companies to buy back their own debt without paying taxes for two years.

The coalition sent a letter to Congress.pdf to Capitol Hill two weeks ago signed by about two-dozen large trade groups. R. Bruce Josten, the chamber's top lobbyist who is coordinating the coalition effort, says the coalition now has close to three-dozen members. Separately, a number of individual companies banded together to send their own letter.pdf to the Hill today endorsing the plan.

The coalition already has a key ally on the Senate Finance Committee - Republican John Ensign of Nevada. He has introduced a bill that would provide the two-year tax break - dubbed "CODI," for cancellation of debt income. Three outside lobbyists with corporate clients pushing the measure say it has strong appeal for several business sectors, among them Las Vegas casino companies saddled with huge debt.

House Democrats this month unveiled a $825 billion package of tax cuts and new spending measures that did not contain the two-year tax break.

                                                                                                             -- Peter H. Stone