Friday, December 10, 2010

The fine print of the tax deal

David Freddoso takes a look at what is in the new tax deal. What a surprise! It's "larded up" with the same sorts of special interest provisions that people are just sick and tired of. In fact, many of the special tax breaks that were in the 2008 TARP bill. Here are some of the special-interest tax breaks in the new deal.
-Research credit.
-Indian employment tax credit.
-New markets tax credit.
-Railroad track maintenance credit.
-Mine rescue team training credit.
-7-year recovery period for motorsports entertainment complexes.
-Accelerated depreciation for business property on an Indian reservation.
-Election to expense mine safety equipment.
-Special expensing rules for certain film and television productions.
-Expensing of environmental remediation costs.
-Deduction allowable with respect to income attributable to domestic production activities in Puerto Rico.
-Tax incentives for investment in the District of Columbia.
-Temporary increase in limit on cover over of rum excise taxes to Puerto Rico and the Virgin Islands.
-American Samoa economic development credit.
When deal-making gets done, the special interests benefit. So it's no surprise that ethanol tax credits have made it into the bill. At least Harry Reid backed off for trying to push online poker into the tax bill. But he might still insert it into the final legislation or into the giant $1 trillion omnibus spending bill that the Democrats need to pass in order to fund the government.