CORPORATE TAXES Bills vary in House, Senate

WASHINGTON (AP) -- Corporate tax bills passed in the Senate and in the House are widely divergent, starting with their most essential ingredients and extending into the many extras that hopped on for a ride.
The House gave corporations a rate cut; the Senate opted for a tax deduction spread among manufacturers of all sizes. The House tacked on a tobacco buyout and a state sales tax deduction; senators inserted restrictions on overtime rules and billions of dollars in energy production incentives.
Hoping for quick passage
Some businesses and many lawmakers want to see the bills passed as quickly as possible, and the bills must be reconciled before anything can become law.
The supporters urge quick passage to end escalating sanctions imposed by the European Union in retaliation for a U.S. tax break benefiting exports. The World Trade Organization declared it an illegal subsidy, and the corporate tax bill yanks it out of the nation's tax code.
In its place, the House and Senate proposed a combination of tax cuts for American manufacturers and simpler tax rules for multinational corporations. While lawmakers negotiate, punitive tariffs imposed on some U.S. exports to Europe, which now stand at 8 percent, will increase 1 percentage point each month.
The House voted 251-179 on Thursday to pass its version of the bill. Democrats gave Republicans their winning edge, with 48 of them voting for the bill.
The House bill's combined tax cuts and spending would reduce money flowing into the U.S. Treasury by $155 billion over the coming decade, but much of its cost is covered by the repeal of the tax break for exporters and other changes closing down tax loopholes and cracking down on tax evasion.
The Senate's bill is even larger than the House -- but its entire cost is covered with changes that bring new revenue into the federal government.