WASHINGTON – Democrats helped give Republicans the margin of victory Thursday as the House passed a $155 billion bill that would cut taxes for American producers and pay tobacco farmers to give up a federal program that shores up crop prices.
The 251-178 vote saw an unusual number of Democrats cross party lines and back a GOP tax bill during an election year. A new federal deduction for state sales taxes and the tobacco program successfully attracted their votes.
The core of the bill aims to resolve a trade dispute with Europe that has slapped punishing tariffs on some American exports. The trade sanctions, now 8 percent, rise another 1 percent each month.
The tariffs retaliate for a U.S. tax break that world trade courts ruled was an illegal export subsidy. The White House warned that unless lawmakers quickly change American tax laws, “then the tariffs that were imposed by the EU on March 1 will inflict an increasing burden on American exporters, American workers and the overall economy.”
House Republicans said resolving the European standoff and infusing new tax cuts into the economy would mean better economic growth and more jobs.
“Tariffs is another word for taxes,” said Rep. J.D. Hayworth, R-Ariz.
Many Democrats disagreed.
“You can put lipstick on a pig, but you can’t call it a lady,” said Rep. Charles Rangel, D-N.Y. “This is a lousy bill, and it has nothing to do with reform.”
The bill passed Thursday reduces the top corporate tax rate for U.S. producers from 35 percent to 32 percent. Some Republicans remained concerned that smaller businesses didn’t benefit enough.
To bolster support, tax writers made changes to attract votes from Republicans and Democrats. More than 40 Democrats threw their support behind the bill.
One popular addition gives a new deduction to taxpayers who live in states that impose sales taxes instead of income taxes, letting taxpayers choose whether to deduct income or sales taxes from their federal income tax return.
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