Senate Passes Corporate Tax Bill

The Senate gave final approval yesterday to the most significant corporate tax legislation in nearly 20 years, sending President Bush a 650-page measure that reduces taxes for domestic manufacturers, builders and even Hollywood studios and doles out scores of tax breaks for interests ranging from tackle box makers to Native Alaskan whaling captains.  The 69 to 17 vote, taken in a rare holiday session, belied the acrimony underlying the measure, which includes $143 billion in tax breaks over 10 years, offset by loophole closures and other revenue raisers. The House passed it Thursday night by a similarly comfortable margin, 280 to 141, and White House aides say Bush will sign it into law, despite strong criticism leveled last week by Treasury Secretary John W. Snow. Public health groups were infuriated that a $10 billion buyout for tobacco farmers was included without a provision to grant the Food and Drug Administration authority to regulate cigarettes. Charitable organizations protested a revenue-raising measure that would greatly reduce the value of automobiles donated to charities.  But threatened filibusters over the tobacco provision and the bill's failure to include a tax break for employers of National Guard members and reservists fizzled yesterday. [more ]