Article: Tobacco Issue May Halt Corporate Tax Bill

MARTIN CRUTSINGER, AP Economics Writer
AP Online
10-05-2004
Dateline: WASHINGTON
House and Senate negotiators began clearing away roadblocks Monday to passage of a corporate tax bill needed to end a costly trade dispute with Europe. However, a fight over whether to regulate tobacco as a drug threatened to scuttle the whole effort.

House Ways and Means Committee Chairman William Thomas, R-Calif., presented a version of the bill that would repeal the outlawed export tax break but would also shower U.S. corporations with billions of dollars in tax breaks in other areas.

However, the overall bill would be revenue-neutral as it closes enough tax loopholes to pay for the new breaks.

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