If compromise is a dirty word in Washington, congressional leaders have managed to strike the ultimate form of compromise – a deal which is disliked by both sides, Republicans and Democrats.
Here’s how The Washington Post describes the reaction to the $1.1 trillion budget bill that could be put to a vote in the House later this week:
“Many Republicans are reluctant to support the appropriations bill because it is the result of an earlier deal to increase spending over the next two years. House Democratic leaders, meanwhile, oppose the tax package because they argue it doesn’t do enough for lower-income workers and would make it more difficult to strike a tax reform agreement in the future by making breaks for businesses appear less expensive than those for middle- and low-income taxpayers.”

The massive tax break package within the 2,000-page bill would cost about $650 billion and extend around 50 credits for businesses and individuals. It would also delay until 2017 a tax on medical device manufacturers. In turn, the appropriations package delays for two years the Affordable Care Act’s so-called Cadillac Tax on expensive employer-sponsored health care plans.
The spending bill also would lift the 40-year ban on crude oil exports, as Republicans had hoped. In exchange, Democrats secured the extension of tax breaks for wind and solar energy producers for five years.
Despite grumbling by House Democrats, the bill does offer key tax breaks for the middle class and the working poor:

  • An expanded Earned Income Tax Credit for low-income earners
  • The Child Tax Credit for low and moderate income workers
  • The American Opportunity Tax Credit to help students under age 40 pay college tuition and expenses
  • Low-income housing credits

Here are some of the bill highlights reported by the Post:

  • Overhaul the so-called visa-waiver program, barring anyone who has visited Syria and Iraq, among other spots, from entering into the US without a visa.
  • Make permanent key tax breaks for businesses, including provisions for research and development and the purchase of equipment and software
  • Freeze funding for the Internal Revenue Service and the Environmental Protection Agency

And here’s what Business Insider reports about what didn’t make it into the deal:

  • Any provisions on acceptance of Syrian refugees, for which Republicans have been clamoring since the Paris terror attacks last month.
  • A provision halting funding to Planned Parenthood, for which Republicans had been pushing since a series of undercover videos were released this summer.
  • A lift of the congressional ban on gun-violence research by the Centers for Disease Control and Prevention (CDC), a priority of Democrats.

 

Recent Posts: