House narrowly passes tax, tobacco bill - KTRE.com | Lufkin and Nacogdoches, Texas

06/18/04 - Capitol Hill

House narrowly passes tax, tobacco bill

With a number of Democrats crossing party lines, the House has approved a 155 billion-dollar measure cutting taxes for American producers.

The bill also pays tobacco farmers to give up a federal program that shores up crop prices.

The measure is aimed partly at resolving a dispute with Europe, one that centers on tariffs slapped on American exports. They were in retaliation for U.S. tax breaks that have been ruled an illegal export subsidy by world trade courts.

The top corporate tax rate for U.S. producers would go from 35 percent to 32 percent.

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