24 October 2004

Criticism for Bush from fiscally conservative Republicans over latest corporate tax cuts

It still surprises me that the Bush administration ignores Republican fiscal conservatives.

Reuters.com: Without fanfare, Bush OKs corporate tax cuts: Without fanfare, President George W. Bush signed into law on Friday a nearly $140 billion corporate tax cut bill derided by both Democratic presidential rival John Kerry and Republican Sen. John McCain as a giveaway to special interests.

The White House had marked the signing of Bush's other major tax bills with lavish public ceremonies. This one was marked with a one-paragraph statement by the press secretary.

[The bill] included many special interest provisions sharply criticized by public interest groups and fiscal conservatives, which congressional aides said explained Bush's decision to sign it in private.

Sen. John McCain, an Arizona Republican who is campaigning for Bush, had called the measure 'the worst example of the influence of special interests that I have ever seen.'

The bill includes a $10 billion industry-financed buyout for tobacco farmers and tax breaks for U.S. multinational companies, some of which critics say will encourage companies to ship jobs overseas.

A one-year tax holiday for multinationals was included that will allow them to return billions of dollars in profits back to the United States at a dramatically lower 5.25 percent rate instead of the normal 35 percent top corporate rate.

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