With Crony Tax Bill, Democrats Are Doing Their Level Best to Revive the Swamp

The Daily Signal | 6/19/2019 | Staff
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Adam Michel focuses on tax policy and the federal budget as a policy analyst in the Thomas A. Roe Institute for Economic Policy Studies at The Heritage Foundation.

Congressional Democrats are taking the lead to renew a list of long-dead tax subsidies at the behest of powerful corporate lobbyists.

Plan - Tax - Tax - Extenders - Bill

Their plan is to attach the long–sought-after corporate tax subsidies—called “tax extenders”—to a bill that expands welfare spending. How to pay for it? They plan to cover about a quarter of it by raising the estate tax. The rest would be added to the already-massive federal deficit.

The House Ways and Means Committee will consider the package of bills on Thursday.

Tax - Credits - Privileges - Consideration - Types

There are 14 tax credits and other privileges under consideration that subsidize certain types of energy production and use. Biofuels, plug-in electric cars, coal facilities, and energy efficient homes all have their own carve-outs.

There are other subsidies as well—for instance, for an American Samoan tuna plan; a renewed program for low-income areas that government research has repeatedly found to be ineffective; an increased tax on coal; and a paid family leave subsidy that acts as a windfall tax benefit, as it is almost exclusively used by businesses that are already providing leave in the free market.

House - Committee - Plans - Subsidy - Bill

The House committee plans to pair its corporate subsidy bill with a bill that would temporarily expand payments to taxpayers with children and to low-income workers.

The proposal includes new welfare spending through the “refundable” child tax credit for people who currently don’t pay any income taxes.

Credit - Child - Care - Expenses - Beginning

An expanded credit for child and dependent care expenses is proposed, and the beginning of the phase-down (from the new 50% credit to the existing 20% credit) would be increased to $120,000 a year—up from its current $15,000 threshold. Employers could also get an increased subsidy for childcare services.

These bills would also expand...
(Excerpt) Read more at: The Daily Signal
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