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Senate to Take Up Corporate Tax Bill

Posted on: Sunday, 10 October 2004, 06:00 CDT

WASHINGTON - Senators are turning their attention to a wide-ranging $136 billion corporate tax bill as lawmakers whittle down their workload before leaving town for the elections.

In an unusual Sunday session, the Senate planned to vote on ending procedural roadblocks opponents have used to snarl the tax legislation, which contains breaks for everything from large corporations to importers of Chinese ceiling fans. Supporters of the measure were predicting victory, and final passage was possible later in the day.

The House adjourned Saturday for the campaigns after approving a trio of bills. They were a $14.5 billion hurricane and farm disaster package; a $33 billion bill financing the Department of Homeland Security; and legislation shaping $447 billion in Pentagon programs for the new budget year.

The Senate approved the defense bill but didn't get to the hurricane or Homeland Security measures.

"FEMA runs out of money tonight," said Sen. Ted Stevens, R-Alaska, trying to prod the Senate into action by arguing that the Federal Emergency Management Agency needed cash to continue helping hurricane victims.

But his pleas had little effect. Senators including Tom Harkin, D-Iowa, and Mary Landrieu, D-La., used lengthy speeches to complain about items missing from the tax bill. Those included Food and Drug Administration regulation of tobacco, tax breaks for reservists called to active duty and language blocking new Bush administration overtime regulations.

Senate Majority Leader Bill Frist, R-Tenn., planned votes for Monday on ending the delays that have slowed the disaster and Homeland Security bills. He said those votes were needed "because of the obstruction that has played out over the last two days from the other side of the aisle."

The House approved the tax legislation Thursday by 280-141.

The bill would provide $76.5 billion in tax relief for the country's beleaguered manufacturing sector and other producers including construction companies, architects, engineering firms, film and music companies, and oil and gas concerns.

The bill would also repeal a $5 billion annual tax break provided to American exporters that was ruled illegal by the World Trade Organization. Ending the tax break is needed to lift retaliatory tariffs that have been imposed on U.S. exports to Europe that now stand at 12 percent and are rising by 1 percentage point a month.

The bill replaces the export tax break with $136 billion in new tax relief over the next decade for a wide array of groups from small businesses to farmers and fishermen.

On Saturday,

- The House by 374-0 approved the bill helping hurricane victims and farmers suffering from drought, flood and other emergencies. It included $11.6 billion for Florida and other storm-struck states and $2.9 billion for farmers hit by drought and other natural disasters. Some $6.5 billion was for FEMA and the aid it provides individuals and state and local governments. The measure was attached to a $10 billion military construction bill.

-The House passed the Homeland Security bill by 368-0. The measure would spend more than President Bush proposed, but provide less than last year for firefighters and other emergency responders.

-Congress sent Bush a bill shaping $477 billion in programs for the Pentagon for the new budget year. The measure would let the Air Force buy 100 Boeing 767s for use as midair refueling tankers, but would block a proposal to lease the aircraft.

-The Senate voted 79-6 for a bill reorganizing the way its committees oversee intelligence agencies.

-Congress sent Bush a bill increasing access to DNA testing for rape victims and convicted felons.

-The Senate sent Bush a bill ending the government's guarantee to banks of a 9.5 percent rate of return on some student loans. The guarantee had meant large profits for lenders at a time of much lower interest rates.

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