Tags: tax | breaks | special | interest

Tax Breaks for Special Interests Part of Fiscal Cliff Deal

Thursday, 03 Jan 2013 07:01 PM

By Dale Eisinger

  Comment  |
   Contact  |
  Print  
|  A   A  
  Copy Shortlink
While Republicans were fighting to keep Bush-era tax cuts from going over the fiscal cliff, parachuting safely to passage were a number of tax breaks for a variety of industries.

Included in the recent $75.3 billion budget deal passed by Congress and signed by President Barack Obama were tax softeners for interests as diverse as wind farms, motorsport tracks, global banks and Puerto Rican rum.

Democrats were resisting special-interest business provisions while Republicans were demanding spending cuts. Some spending cuts made it into the bill, passing both parties, though complaints about the special endowments earned complaints from both sides of the aisle.
Most of the tax breaks had expired by the end of 2011 and will be extended through 2013, according to Bloomberg Businessweek.

One analyst told Businessweek the breaks are basically “economically useless or harmful” but they served a broader purpose in the culture of politics and lobbying in Washington — fundraising.

“If you make them permanent, you get the campaign contribution once,” said Bob McIntyre, director of Citizens for Tax Justice. “You do it every year or two, they have to ante up again and again.”

Because the tax breaks must be renewed every so often, companies say they can’t count on their reliability to plan investment strategies around them.

All of the breaks are lumped together in the budget package meant to reduce the federal deficit, which has loomed above $1 trillion for four years. Included in the breaks are things as broad as multibillion-dollar benefits for big companies to much smaller changes framed to increase employment among Native Americans. Elsewhere, there is a credit provision for corporate research, one that costs the government $14.3 billion in revenue.

There’s also a $11.2 billion two-year extension of the active financing exception, which allows multi-national corporations to defer taxes on financing they earn outside of the U.S.

“You can see where Congress’s heart is, perhaps its soul as well,” McIntyre said.

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print  
  Copy Shortlink
Send me more news as it happens.
 
 
Get me on The Wire
Send me more news as it happens.
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

Passengers Push Plane on Icy Russian Runway (With Help of a Tractor)

Wednesday, 26 Nov 2014 20:45 PM

Passengers on a Russian plane got off to push the aircraft to help get it on the runway after it began slipping on ice i . . .

Bernie Tiede, Convicted Murderer Mortician, to Get New Sentencing

Wednesday, 26 Nov 2014 17:39 PM

Bernie Tiede, the mortician who was convicted of killing his companion Marjorie Nugent in 1996, will receive a new sente . . .

Chrysler Pentastar Logo Getting Phased Out With FCA Formation

Wednesday, 26 Nov 2014 15:51 PM

Chrysler's iconic Pentastar logo is being phased out as the company introduces a new logo in keeping with the newly form . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved