House Lawmakers Seek To Hitch Legislative Wagons To Key Corporate Tax Bill

by Mike Godfrey, Tax-News.com, Washington

20 May 2004

According to reports in the US media, lawmakers in the US House of Representatives are seeking to tack several unrelated tax provisions onto legislation designed to repeal the country's FSC-ETI legislation.

Following the recent passage in the Senate of the JOBS (Jumpstart Our Business Strength) bill, which will give US manufacturers a 3% corporate tax cut, replacing the trade subsidies ruled illegitimate by the WTO, the need to pass the legislation in the House has become pressing.

However, speaking to the Associated Press this week, House Majority Leader, Tom DeLay (R-Texas) revealed that this has led to many Representatives seeking to hitch other pieces of legislation to the corporate tax bill.

"Obviously everybody is interested in this bill because everybody thinks it's a must-do bill and everybody wants their piece of it, and that's creating a problem in itself," he explained.

Unrelated provisions that lawmakers in the lower house are seeking to attach to the bill include plans for a government buy-out of the price support system for tobacco, proposed sales tax deductions for taxpayers in states without income taxes, plans for the extension of tax credits that are set to expire, and incentives for energy producers.

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