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Senate Passes Corporate Tax Bill May 12, 2004 (Associated Press) The Senate passed a $170 billion package of corporate tax cuts Tuesday, including provisions to head off a trade war with Europe and stimulate American manufacturing and energy production. The bill carries other items, including a politically charged blockade against new overtime rules aimed at preventing President Bush from stripping the premium pay from workers now eligible for the benefit. The Senate voted 92-5 to pass the package. Tax writers said they hoped their actions would give much needed momentum to the House, which has struggled to amass support for its version of the measure. "I was told the House was going to act very quickly," said Senate Finance Committee Chairman Charles Grassley, R-Iowa. The bill would repeal a $5 billion annual tax break for U.S. exporters that triggered punishing tariffs from Europe. The World Trade Organization had declared the tax break an illegal export subsidy. Tariffs on some American exports hit 7 percent in Europe this month. The penalty started at 5 percent in March and is scheduled to increase 1 percentage point each month until it hits 17 percent next year. -- Mary Dalrymple |
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