Webb's GI Bill tied to tax increase

There's a new problem brewing for Virginia Sen. Jim Webb's GI bill that would give free college tuition to troops returning from Iraq and Afghanistan.

Can you say ``tax increase"?

Congressional leaders have attached Webb's measure to a must-pass spending bill to finance the Iraq war.

But conservative House Democrats rebelled, saying they could not support additional domestic spending without offsetting cuts in other programs, or tax increases.

House Democratic leaders listened, and came up with what they hope will solve the problem: a half-percentage-point income tax hike on income above $500,000, or $1 million for joint filers.

Republicans are sure to reject any income tax increase, particularly in a heated election year. While Democrats may have enough votes to push the package through the House, they are unlikely to succeed in the Senate.

A partisan deadlock over tax increases could imperil Webb's long-sought GI bill, a centerpiece of his 2006 election campaign.

The House tentatively plans to take up the war spending package on Thursday.

No word yet from Webb on whether he would swallow a tax hike to get his bill passed.