The Republican-controlled House may vote as early as
today on a package of six pro-business tax credits that would add $310 billion
to the deficit over the next 10 years.
today on a package of six pro-business tax credits that would add $310 billion
to the deficit over the next 10 years.
That movement has Democrats howling because the
Republican mantra has been that all changes in taxes or spending must be paid
for with offsets to avoid impacting the deficit. Democrats contend that emergencies need not be paid for,
particularly the proposal to extend long-term jobless benefits that has
languished since December. Republicans blocked that plan but are now making an
exception for the business community.
Republican mantra has been that all changes in taxes or spending must be paid
for with offsets to avoid impacting the deficit. Democrats contend that emergencies need not be paid for,
particularly the proposal to extend long-term jobless benefits that has
languished since December. Republicans blocked that plan but are now making an
exception for the business community.
Among the loudest
critics of the tax package is Congressman Sander Levin, the Royal Oak Democrat
who represents most of Macomb County. The price tag, according to Levin, “is more
than three times what we spend annually on education, job training and social
services. It is five times more than we spend on veterans. It is five times
more than we spend on medical research and public health.”
critics of the tax package is Congressman Sander Levin, the Royal Oak Democrat
who represents most of Macomb County. The price tag, according to Levin, “is more
than three times what we spend annually on education, job training and social
services. It is five times more than we spend on veterans. It is five times
more than we spend on medical research and public health.”
The Democrats on the
tax-writing Ways and Means Committee, led by Levin, have added another
comparison: it’s 13 times the amount that it would cost to extend unemployment benefits for
the entire year.
tax-writing Ways and Means Committee, led by Levin, have added another
comparison: it’s 13 times the amount that it would cost to extend unemployment benefits for
the entire year.
The legislation would
make permanent and, in some cases, expand tax breaks that are prized by certain
sectors of the economy.
make permanent and, in some cases, expand tax breaks that are prized by certain
sectors of the economy.
According to
McClatchy Newspapers, the provision with the most bipartisan support in the House
is the Research and Development tax credit, which would rise from 14 percent to
20 percent, all without accounting for the billions in revenue the government
would lose.
McClatchy Newspapers, the provision with the most bipartisan support in the House
is the Research and Development tax credit, which would rise from 14 percent to
20 percent, all without accounting for the billions in revenue the government
would lose.
“It is allowing
businesses who invest to keep more of that investment, to plow it back into
research,” said House Majority Leader Eric Cantor, R-Va. Added Rep. Kevin
Brady, R-Texas, one of the bill’s chief sponsors: “I’m tired of losing ground
to America’s global competitors.”
businesses who invest to keep more of that investment, to plow it back into
research,” said House Majority Leader Eric Cantor, R-Va. Added Rep. Kevin
Brady, R-Texas, one of the bill’s chief sponsors: “I’m tired of losing ground
to America’s global competitors.”
