House Panel Advances Tax, Tobacco Bill

[Judi Lynn]

Posted on Tue, Jun. 15, 2004

House Panel Advances Tax, Tobacco Bill

MARY DALRYMPLE
Associated Press


WASHINGTON - Republican tax writers in the House enticed a few Democrats to support a corporate tax cut on Monday, sweetening the bill with a federal deduction for state sales taxes, a $10 billion federal buyout for tobacco farmers and new tax rules for shipping.
In a vote taken near midnight in the House Ways and Means Committee, three Democrats joined Republicans to back the election-year tax cut.
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With little hesitation, however, the committee stripped another contentious item that would have lessened penalties on churches that mistakenly mix religious and political activity. Most churches and religious groups are tax-exempt organizations, prohibited from taking part in political campaign activity.
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Democrats found themselves powerless to attack one section that some found disagreeable - the program to pay nearly $10 billion over five years to tobacco farmers to give up a federal quota program that has propped up their prices.

The program falls outside the realm overseen by the tax-writing committee, leaving Democrats with no avenue to amend or debate the program. "It's just a back-room deal to give $10 billion in public money away," said Rep. Lloyd Doggett, D-Texas.
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