A move to halt US companies moving to Bermuda to lower tax bills was yesterday put before Congress for the first time but did not get out of the starting blocks.

The bill, sometimes called the Patriot or Repo Act, was piggybacked on to another piece of legislation to give tax relief to married couples in a bid to get it passed before the end of session.

But this back door approach did not work and the bill was thrown out and the marriage tax relief bill postponed until next week when it will be put forward again.

The Patriot Tax bill was put forward by one-time friend of Bermuda, Democratic Representative Charles Rangel. He said in his speech to Congress about the half a dozen or so companies that have or want to re-domicile in Bermuda to save taxes: "It is unpatriotic and downright immoral to do this in time of war when we have men and women in harm's way."

The surprise bill came after Minister of Finance Eugene Cox flew to Washington, DC last week in the wake of growing anti-Bermuda sentiment on Capitol Hill. So far no details of any meetings held by the Minister have been made public, and questions from The Royal Gazette about the trip have still not been answered.

It is understood the Minister briefed Cabinet on Tuesday and will speak at the House of Assembly tomorrow on the matter, but has declined to answer media questions on the trip and its outcome.

It was the House Republicans who postponed the vote on legislation to speed up "marriage penalty" tax relief after the Democrats tried to attach the separate tax haven measure some Republican lawmakers oppose. The Republican leaders had intended to use a vote yesterday on the marriage penalty bill as a high-profile way to mark nearly a year since the final passage of President Bush's ten-year, $1.35 trillion tax cut.

The delay came after Mr. Rangel insisted on offering an amendment intended to prevent US companies from relocating to tax-friendly locations such as Bermuda.

Mr. Rangel's amendment would effectively eliminate any tax benefits for companies that reincorporated offshore after September 11, 2001.

Companies that had relocated before the date of the terrorist attacks would be returned to the US tax system in two years.

Although these relocations for tax reasons are legal, the feeding frenzy has been growing against such a move and Democrats have seized upon them as a political issue that is beginning to have some impact on congressional campaigns.

The vote by shareholders of toolmaker The Stanley Works to reincorporate in Bermuda from Connecticut is also a key issue in the campaign between Democratic Representative Jim Maloney and Republican Representative Nancy Johnson, who are facing one other in a redrawn district and the issue is polarising voters.

Massachusetts Democratic Representative Richard Neal said Republican leaders have "chosen to protect corporate financial traitors" by refusing to allow a vote on Mr. Rangel's amendment, which is identical to a bill Mr. Neal introduced earlier this year, but has, as yet, not been voted upon.

Several Republicans, including Sen. Charles Grassley of Iowa, have introduced their own legislation aimed at curbing the corporate offshore exodus.

And President Bush's Treasury Department is near completion of a study of whether US companies are being forced offshore because of not having a competitive tax code.

House Republicans decided to bring the marriage penalty to a floor vote next Tuesday under rules barring any amendments. The bill would begin to increase the standard deduction for married couples so that it equals that of two single people in 2003, two years earlier than under the Bush tax cut.