Senate Majority Leader Robert Dole on Tuesday rejected plans to tack the Savings Association Insurance Fund rescue onto legislation repealing a federal gasoline tax.

The idea of using the money raised by the thrift fund capitalization to offset a six-month suspension of the gasoline tax was first floated last week by Senate Finance Committee Chairman William V. Roth. But Senate leaders were informed by the Congressional Budget Office that the funds raised by a one-time special assessment on thrifts would be insufficient to pay for the tax repeal.

Instead, Sen. Dole offered to pay for the repeal with money raised through other sources.

By dropping the thrift fund capitalization, Senate Republicans handed banks another victory in the industry's effort to fight off the plan.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.