CONGRESS Dems seek tax cut for industries

WASHINGTON (AP) -- The Democratic leaders in Congress have asked President Bush to throw his support behind efforts to cut taxes for U.S. manufacturers.
"The American manufacturing sector is in crisis," Senate Minority Leader Tom Daschle of South Dakota and House Minority Leader Nancy Pelosi of California wrote the president.
"We believe that policies focused on immediate creation of manufacturing jobs in the United States must be our top priority," their letter said.
Manufacturing has lost nearly 16 percent of its work force, or 2.7 million jobs, in a record 37 straight months.
Bush has announced a new post at the Commerce Department to address manufacturing job losses. The Democrats called that action a "good symbolic first step."
Some lawmakers have announced legislation aimed at preventing China from undermining American manufacturing. They say China has an unfair foothold in the market because an undervalued currency makes their exports cheaper. They want to hit China with a punishing import tariff.
Also, congressional tax-writers have started looking at ways to aid U.S. manufacturers.
Lawmakers plan to debate a corporate tax cut later this year. They must eliminate a $5 billion annual tax break for exporters declared illegal in international courts. The United States faces billions in penalties next year from the European Union if the tax break is not eliminated soon.