The Senate yesterday approved a $137 billion corporate tax cut marking the biggest restructuring of the corporate tax code in two decades. One of the biggest winners is the tobacco industry which will receive a $10 billion buyout. Senator John McCain described the bill as a “disgrace” and a “complete sellout to the tobacco companies.” Originally Congress planned to give the tobacco industry $10 billion in exchange for allowing the Food and Drug Agency to increase regulation of their products. But legislators removed the FDA provision while preserving the tax break. The Center for American Progress has detailed some of the special interests who will benefit from the tax cut. Corporations like Eli Lilly and Hewlett Packard will save nearly $28 billion on profits earned abroad; NASCAR track owners will save $101 million. Importers of Chinese ceiling fans stand to save $44 million. Cruise ship operators will see a $28 million savings. Fishing tackle box manufacturers will save $11 million with the biggest savings going to a company located in House Speaker Dennis Hastert’s district. And bow and arrow manufacturers will receive a $9 million tax break. And the 633-page bill includes hundreds of other business tax breaks.
[ The New York Times story. ]