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Getty Images for NASCAR, file
The fiscal cliff compromise includes tax breaks worth $70 million over two years for the owners of race tracks like Charlotte Motor Speedway in Concord, N.C.
Taxpayers aren't the only ones who won't be flying off the fiscal cliff — this year, at least. Add race cars, movies and asparagus to the list.
As part of their last-second deal to slam the brakes on an economy racing toward the so-called fiscal cliff, lawmakers gave the green light this week to extending dozens of business and industry tax breaks, like a cost-recovery program that will save the owners of "motorsports entertainment complexes" (that is, racetracks) about $70 million over the next two years.
Much of the compromise agreement that President Barack Obama's autopen signed into law Thursday was targeted at individuals and families, notably preserving most of the tax cuts that passed under President George W. Bush, which were set to expire Monday. Rep. Debbie Wasserman Schultz of Florida, chairwoman of the Democratic National Committee, told MSNBC that the deal was "a big gift-wrapped present of certainty to the middle class."
But the agreement also came loaded with extensions of separate existing tax breaks for businesses and industries, many of which had expired in the past year — about $67.9 billion in all in 2013, as tabulated by Congress' Joint Committee on Taxation.
(The extensions will actually cost much more: Not only were they made retroactive to cover 2012, but some of the breaks and credits would be in effect for 10 years if left in place. Many cover only one or two years, however.)
Read the full 10-year analysis from the Joint Committee on Taxation (.pdf)
In addition to extending tax breaks for racing moguls, the legislation also extended:
• A tax credit for construction of renewable energy projects, like wind turbines and biomass, geothermal and hydropower generation, for one year. It's projected to cost about $116 million, the committee said.
That may seem like a drop in the bucket, but here's the kicker: While the extension to qualify for new projects covers only 2013, the actual tax credit itself is good for 10 years. That means new projects that break ground in 2013 will be able to claim the credit for the next decade, at an overall price tag the committee put at slightly less than $12.2 billion.
• An arcane provision of corporate tax law, called active financing income, that lets U.S. corporations defer taxes on some income they earn from their overseas subsidiaries. That provision will cost the U.S. Treasury more than $9 billion this year and $1.8 billion next year.
• Tax breaks for Hollywood producers who shoot their movies and TV shows in the U.S., at a cost of about $430 million through 2014.
• A program that sends most federal taxes collected on rum produced in Puerto Rico and the U.S. Virgin Islands back to those territories to subsidize domestic production. Bar tab: $222 million over two years.
• A tax break worth about $15 million a year for asparagus growers hit hard by cheap asparagus imported from Peru.
• $4 million in tax breaks over the next two years for people who buy "2- or 3-wheeled plug-in electric vehicles" — in other words, electric scooters, Segways and the like.
The purpose of the deal was to prevent a series of steep spending cuts and tax increases on the middle class from automatically taking effect in the new year. But "we're not making it (the tax system) better or fairer," Rep. Darrell Issa, R-Calif., chairman of the Oversight and Government Reform Committee, said on the House floor Tuesday in explaining why he was voting against the measure.
Big policy losers in tax deal: deficit reduction and 'certainty'
"We're not getting rid of the NASCAR loophole. We're not getting rid of the electric motor scooter low-speed loophole. We're not getting rid of a whole lot of tax things that are here," Issa said.
Rep. Debbie Wasserman Schultz, D-Fla., tells Ed Schultz how the Democrats and the White House plan to move forward, with or without House Speaker John Boehner, pictured, as a larger fight over the deficit looms.
Neither new nor secret
Although many of the provisions are being characterized as new pork barrel programs that sneaked their way into the bill under cover of darkness, there's nothing new or secret about any of them.
Most of the tax breaks had been scheduled to expire on Dec. 31, 2011, and as long ago as February, lawmakers were seeking a way to revive them.
Industries in limbo as Congress mulls expired tax breaks
Eventually, they were packaged together as the Family and Business Tax Cut Certainty Act of 2012. It was so titled because "people need certainty to plan their finances, and businesses need certainty to hire, invest and grow," as Sen. Max Baucus, D-Mont., chairman of the Finance Committee, said when the committee passed the package in August.
Once it was out of committee, the measure went nowhere. That is, until this week, when — with a lame-duck Congress just hours away from going home without having addressed the fiscal cliff — it was substituted almost word for word into the deal brokered by Vice President Joe Biden and Senate Republican leader Mitch McConnell of Kentucky.
It makes up Titles III and IV of the final bill, with many of the alterations reading like this:
Paragraph (1) of section 7652(f) is amended by striking "January 1, 2012" and inserting "January 1, 2014".
(If you want to see what changed, here's the Family and Business Tax Cut Certainty Act of 2012 (.pdf) and here are the changes made to it in the final bill (.pdf).)
Former Sens. Alan Simpson, R-Wyo., left, and Erskine Bowles, D-N.C., co-chairman of President Barack Obama's 2010 deficit commission, said Congress missed a 'magic moment' to reform the tax code.
By taking the clock down to 00:00 and backing itself into a corner, Congress "missed this magic moment to do something big to reduce the deficit, reform our tax code and fix our entitlement programs," said former Sens. Erskine Bowles, D-N.C., and Alan Simpson, R-Wyo., the co-chairmen of Obama's 2010 commission responsible for finding a way out of the country's economic morass.
"We have all known for over a year that this fiscal cliff was coming," they said in a joint statement Tuesday, adding: "Yet even after taking the country to the brink of economic disaster, Washington still could not forge a common sense bipartisan consensus on a plan that stabilizes the debt."
Sen. John McCain, R-Ariz., was less diplomatic.
"It's so incredibly disappointing that members of Congress saw fit to add hundreds of millions of dollars in special-interest handouts to the recently passed 'fiscal cliff' bill, which had the simple purpose of avoiding massive tax rate increases on average Americans," McCain said Thursday.
"It's hard to think of anything that could feed the cynicism of the American people more than larding up must-pass emergency legislation with giveaways to special interests and campaign contributors," he said. "And this growing cynicism — largely justified in my view — will make it harder for us to deliver the tough medicine needed to address our crushing national debt."
Unloved for so long, Congress not fazed by public's disapproval
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Leave a Comment:
Congress obviously voted to extend it's own corruption.
gizmowicz...
While keeping the record in tact.
We have seen the enemy
and their name is congress
...and if anyone thinks they are going to change anything, you are mistaken.
Our only chance is to conviene a continental congress, or have another revolution
This article would have been more helpful if it had identified the author of each loophole. Instead, people seem to be vilifying all of Congress. That's unfair. Congress needed enough votes to pass a budget. Some Congressmen (who should be identified in the article) conditioned their vote on the inclusion of some pork. The rest of Congress was stuck with no budget, or a budget with pork.
Tell us who the swine are, NBC!
And for this and increasing LONGTERM unemployment, Congress is screwing over our military service men and women. It's a sad day to be an American.
I was a democrat but now im a independent.One way to get change and only one is to vote all incumbents out in 2014.CLEAN HOUSE!!!! Its clear as day none of these people are looking out for our best interests.America is broken !!
From the most crooked representative in office;
"Rep. Darrell Issa, R-Calif., chairman of the Oversight and Government Reform Committee, said on the House floor Tuesday in explaining why he was voting against the measure."
Translate;
I did not get a dime therefore I will not vote for it.
You are an idiot.
For all of you who are upset by this bill you still have time to contact your Congressional representatives on the Hurricane Sandy bill.
Total Bill Today: ~$60 Billion
Total Going to Sandy Victims: ~$30 Billion
Waste: ~$30 Billion (that no Sandy victim will see)
Since MSNBC won't report that until after the vote, I have given you the chance to stop it before.
I urge all of you to call your Representative and Senator now with your outrage!
i thought it was a refeif bill for sandy victoms,,,,
so shouldnt the only thing in it, be just for the storm recovery???
why add nascar or hollywood?????
dont mess with texsas.....nascar and hollywood were in the "fiscal cliff" bill....
I am talking about the Sandy bill up for vote today....
Nothing ever changes it seems.
Fiscal cliff deal includes at least $67.9 billion for special interests
What the hell kind of headline is this? The 67.9B is TAX BREAKS!!! Which means the bill actually doesn't cost this but is actually what the people who own the businesses and make the money get to keep instead of handing it over to the government. Why is this bad? I thought unfair taxes were why this nation fought against tyranny to exist! And here you have a headline fully meant to mislead and a bunch of nitwits that now think the agreement costs us this much more. We should all fight so that we see more of these headlines like, "TAXPAYER DEAL INCLUDES 1 TRILLION FOR REGULAR JOES THAT HAVE A BUSINESS AND EMPLOY PEOPLE!!!". Which again would simply mean that people get to keep their money....
Since we currently can't pay for all of our govt spending, handing out $67.9B in tax freebies is not ideal. Couple that with the impression that this was supposed to be some type of emergency to avert the "cliff", but it turns out that congress had time to take care of its friends.
The people who own race tracks own them to make money. If they can't do that and pay taxes, stop holding the races or charge more, but don't come looking for a hand out from the govt. Same goes for hollywood. Why?
" An arcane provision of corporate tax law, called active financing income, that lets U.S. corporations defer taxes on some income they earn from their overseas subsidiaries. That provision will cost the U.S. Treasury more than $9 billion this year and $1.8 billion next year.
the 99 % of us get screed again. Why am i Surprised? This while the elderly just got a 1. increase which is already eaten up by inflation. And our meds raise to sky level costs. And vets pensions were increased by sums from $3.00 for a disabled vet and up. Rave on McConnell.
I'd like to know who sponsored each piece of this bill. Lets see who lied about "no more pork" in their campaign speeches. I'm sure both parties and the president had their hand in the cookie jar.
Once AGAIN these POLITICIANS do not seem to GET IT. Americans are sick of ASSISTING and GIVING to the LOBBYIST and SPECIAL INTEREST GROUPS.
IT should be outlawed or turned right over to the PUBLIC for a VOTE. NOT OUR REPRESENTATIVES who are idiots and FOCUSED on their own STATE instead of the NATION. It reeks of CORRUPTION pure and simple!!!
HELLO, DUH all you IMBECILES in GOVERNMENT. YOU are there for the NATION ???????
Tax the "evil rich" for 80 Billion so that 67 Billion of it can be given to special interests. WOW!
Obama made an entire election campaign on taxing the "evil rich" for 80 Billion and this is what he does with it?
No matter people were told over and over it was all a bunch of BS, they voted for Obama anyway.
We are in for the destruction of our nation, and economy, because we have lost any kind of moral base or foundation in society.
Now, now now, Who put the pork in the barrell? I like the use of Lame Duck Congress, I guess the writer diddn't look up the term Lame Duck Congress first. I got to admit Congress is close to Lame Duck but they didn't win that prize. They spent 10 months and 29 days trying to figure out how to keep a loosing situation going? DUH!!
msnbc...etc--
Nah, you gotta remember, the only RICH this admin wants to tax more is the ones who did NOT donate to THEM.
I already wrote all my reps and told them to hold the line on the SANDY relief bill to ONLY Sandy related stuff!
Bet that'll go over like a lead balloon.
I could be wrong, but NASCAR sounds more like conservative pork. Don't forget, this was a "compromise" which is Washington speak for "I'll take care of my special interests and let you take care of your special interests." Pork is not the exclusive tool of the Democrats. Both sides attach pork provisions to almost every bill that goes through the Congress. There are egregious examples on both sides.
The real solution is to get some young and idealistic first termer to introduce legislation that requires every bill to stand or fall on its own and only contain those items that pertain directly to that bill. If they want to give Nascar a break they have to introduce a separate bill to do so. Then, it is public, it is subject to debate, and taxpayers understand where their money is going. They may have convincing arguments for some of these subsidies and tax breaks. If so, then let them argue it out. If not, the bills go down to defeat.
The problem with allowing amendments like these is that there is no public debate and the value or lack thereof is simply hidden beneath layers of legalese. This is why they do it this way. And make no mistake, both sides do it. It is really difficult to blame conservatives or liberals exclusively. Ripping off the taxpayers is a time honored tradition on both sides.
Read the article! This bill was a carbon copy of an earlier Senate bill! This pork was in it before any compromise!
There is no way to stop this out of control government by civil means. Our forefathers knew these possibilities and forewarned about it. Thats why the constitution was written the way it was. To make sure We The People had the rights and means to stop tyranny.
I grew up in the sixties. I watched, lived, and learned about the cost and effect of civil unrest. Its cost is pain and blood, but it is effective to produce change. Jefferson was right, it takes blood to water the tree of liberty. So until you are ready to bleed some, there will be no peaceful means to effect any change in American government.
As an American, I believe in our founding principals. I have had enough. I cannot move or run to another country. This is my country, but this is not the form of government that was envisioned for America. As of now, I will no longer pay any more taxes and will live the rest of my days as our Constitution intended all Americans to live.
And when enough Americans finally see the light, I will be waiting there to do my part in reclaiming the America so many gave their lives to build. So many will understand, that is the true meaning of being a Liberal, or Conservative. Our forefathers were both, and it worked then. It can and will again, but its not free nor easy!
Are you suggesting violence and saying you are not going to pay taxes? Then you should leave-asap.
It is not 1776 anymore.
gofins- you sound like an idiot. did you not read 1fed up1?
Really, these were the exact same situations our forefathers faced under King George. Change the name of the king and the year...... its all the same. Do some research. By the way, America wasn't founded by people with your point of view!
So you think being a sheep and being slaughtered, or just laying down and being run over, or taking it up the butt is .... well perfectly acceptable gofins?
Times have NOT CHANGED when cowards live off the labors of others, and only complain that those being screwed over should just take it.
You gofins should leave asap, you pathetic loser coward. Probably on the gubmint dole to begin with and don't want the welfare check decreased or taken away.
Well as far as Taxes go you can go to a Lawyer do a very tall satck of paper work for lots of money and not pay anymore Taxes. It is legal. To refuse to pay can be punishing. Taxes were originally started with immigrants that want to be here. It was a tax intended for them and not the American Citizens. Now (present day) if an immagant comes here and starts a business they are Tax excempt for 5 years. Cool huh?
BUT, if those special interest tax breaks were not included, the headlines would be "Obama increases taxes on small businesses." (even though congress wrote the legislation). Damned if you do, damned if you don't. That's the story line of everything the 112th Congress tried to put on Obama and the Democrats.
No moron, they would just have to pay what others pay, you idiot.
It is not raising taxes on someone to make them pay what the rates are for everyone.
Tax breaks mean they do not pay taxes they normally would, and has nothing to do with
raising taxes. Get a clue and take you head out of Obama's butt.
gofins--REALLY??? You think Obama would take the blame for ANYTHING??? With the liberal press???
Wow. THIS 'teflon president' makes Ronald Reagan look like the super glue president.
The Mainstream (and I use that term very loosely) media makes sure Obama gets the blame for NOTHING.
But the CREDIT for things others did.
Want an example? I give you 'Osama Bin Laden.'
MOmaid, We went to WWI when both sides were beaten down to nothing and won. The President of the day took credit for us winning. WWII we did the same thing in Europe again. On the Pacific side we did that with a lot of help spywise. We did fight from largly with some help from the Chinese and Koreans, who were fighting on their fronts. The Russians were bother by the Japonese to a small degree. Even in that small part the Russians helped. Who was the President that got credit here. Sorry but that is just the way it goes. FYI, Bush said publically that to Bin Laden was not in his interest. My question, to this day is WHY NOT? Even though Bin Ladin is long gone, getting him didn't seam to change much of anything.
The people we put into office are idiots!!!!!!
but what does that say about us?
Got that right Mat Renni Bronzer. WHO IN HELL PUT ALL THOSE ADD ONS without the PUBLIC being aware ????????
had enough yet.this is just one example of how corrupt our government is .and this
is out in the open what are they doing in the shadows.humans are the cheapest thing to buy and elected politicians are cheaper than ever
This is precisely what is wrong with how Congress operates. All of them, D, R or I, slip crud like this in what is supposed to be "clean" legislation. And the money disappears. None of this crap could ever pass on it's own. And it should ALL be forced through a direct up or down vote, ITEM BY ITEM not as a package, if we are ever going to clean up and flatten the tax code.
What do you expect from the FAILED LEADER OF THE SENATE? Mr. DO NOTHING HARRY REID.....why did you allow the pork to be put in this IMPORTANT BILL?
I don't care which party put in the PORK. It's HARRY DO NOTHING REID's JOB to stop the pork. When will CONGRESS...BOTH HOUSE AND SENATE ... EVER LEARN TO INTRODUCE STAND ALONE BILLS. The day that starts happening..is the day America will get their financial house in order. And we the people have to start demanding that to happen...TODAY!!
If the PORK had been excluded this bill would of sailed through both houses and the money would be on the way to the victims....but NO....THE GREEDY PIG REID...had to do what he does best....SPEND MONEY HE DOESN'T OWN OR HAVE.
Maybe Reid should spend HIS OWN MONEY FIRST....After all we know he's received his wealth from PAYBACKS AND BRIBES...just like his leader - Obama-sham-wow.
That's not all Reids fault or pork.In fact, the story shows it was always in place, just renewed in most cases.It has been shown that sometimes there are more earmarks from GOP than Dem's.
When we are 16+ trillion dollars in debt....and Harry DO NOTHING Reid is the leader of the Senate. IT IS HIS FAULT!! He could of stopped it...and he didn't....HE IS SUPPOSE TO LEAD.....and he has failed to do so!
He could have easily - with the stroke of a pen - removed all pork...and he didn't do it. HE IS THE SENATES FAILED LEADER.
It is Reids fault, he approved the bill for a vote. Of course he could be excused since he votes on bills without reading them.
Dear Julie Brown. You are so obviously biased and ignorant it's pathetic. You always blame a Dem like Reid but you never mention Boehner and the Republican held House. Why is that? The truth is you want to blame the Dems no matter what.
IF YOU bothered to read my first statement you will notice..I blamed both parties...so do not be as stupid as you seem...thanks.
This bill originated in the Senate. Are you that dumb? It was Harry DO NOTHING Reid's job...to stop the PORK..and he didn't do it.
The PORK is the reason the house stopped it. Get a clue - and if you are that dumb...do some research.
A Nancy Pelosi moment - "We have to pass the bill to know what's in the bill?"
Americans are stupid for even allowing this type of BS to happen.
golfins--nope, it has NOT been shown that there is more pork from pubs. The BIGGEST pork is our welfare system. Second biggest is the whole IRS, and most of the deductions for the average taxpayer (which allows nearly half of all Americans to TOTALLY avoid paying ANY income taxes!) are DEM programs.
It was and is a good old boys closed system to the rest of us. They pad their own wallets, and an eventual crisis that takes this country down will be the result. The only problem is that WE will be the losers in all of it.
It would be a pleasant surprise to see a bill come through clean for once, without all of those (what was the actual term for that?) additions.
Absolutely correct.
I don't care which party put in the PORK. It's HARRY DO NOTHING REID's JOB to stop the pork. When will CONGRESS...BOTH HOUSE AND SENATE ... EVER LEARN TO INTRODUCE STAND ALONE BILLS. The day that starts happening..is the day America will get their financial house in order. And we the people have to start demanding that to happen...TODAY!!
DownTownJulieBrown...
Please sit down...
Couldn't agree with you more. Until serious reforms are enacted managing earmarks and line item veto processes are considered it will be more of the same form each side for ever.
Gofin --you forgot the C. You know, addiCtions? Congress gets Americans ADDICTED to pork, to guarantee their votes.
And remember who got the MOST votes?
Tracy--you DO know that even with a 'line item veto', Congress could over-RIDE the president's Veto?
Instead, we have a system where EACH party blames the other for all the pork, and if the President had a line item Veto, he could ABSOLVE his own party while still doing what is right for the country.
Congress members could still go home and campaign on "I passed a bill that WOULD have given you all gold toilets, but the mean old President vetoed it!" and get re-elected.
The problem is the WEALTHY donors would not be fooled by that tactic. But since this election proved that it was NOT wealthy donors who swayed the election, that's ok.
tracy, no it does not...
Vetoes there are provisions already in place to override vetoes.
Checks & Balances...
No, but they sure as Heck tried. Now there are back to square one, pulling Boehners Strings. I have to admit I laughed my tail off over that pathetic reelected speach he gave. I would have taken him seriously if he had said, "thank you, now let's get down to business as usual."
Maybe, just maybe, if the Press would report why some were against this bill instead of using the DNC's talking points of "The Party of No", "obstructionists", "want to see this president fail", etc., the people that pay for the pork could be making an informed decision and could contact their respective representatives on which way they want them to vote.
Really contact the crook that you voted in, that's on the Norquist payroll? Yeh right.
I don't think any Democrats are on the Norquist payroll.
The problem with everyone's thinking is of a self centered reality based upon the needs of America only.
Read below and get educated on what non-fossil fuel use could potentially do for America.
No what is going to ruin this greate country are those politicians who only want maintain the economy or status quo without having any regards to Future Commodities such as wind, solar, turbine and tidal generation that will create jobs.
Job creation along such lines will do the following for America:
1.Reduce our need for coal burning powerplants - Pull your panties out of the crack. With America not using as much coal here in America our coal can be imported to areas around the world where the coal that is mined is not very good. Such countries would benefit from our reduction in the use of our coal because America would then have a surplus of the good coal that could be sold at lower a price per ton to developing countries.
When countries such as Afghanistan are able to purchase large amounts of good coal they would be able to then build coal plants to power their villages alot cheaper than it would for them to build refining factories to clean and prepare the low grade cool that they still use donkeys to transport to market.
I watched a documentary about a young man in Afghanistan who lived a hard and rugged life. A Far more rugges and hard life than even Roughnecks can claim to live. Such people would welcome the change from having to scrounge the land to make a living rather instead enjoying a rather rigourous walk to the coal plant each morning.
With America reducing our independence on coal and selling the stock to Afghanistan jobs would be created both in Afghanistan where the increased need for America coal would even most likely create new jobs in the coal industry while new jobs and advantages were created in Afghanistan to lift them from their frog pond.
Such jobs would include: Coal Plant operator, truck driver, electric line layer, electric pole installer, phone and cable installer, the list goes on and on where the advantages of America reducing our need on coal and instead switching over to non-fossile fuels would in fact create wealth for Afghani's where there was none before while providing them with the tools to better their existence without the inclusion of religion in the form of American based religious facilities being attached with such a deal.
So by America reducing our need for coal by establishing non-fossil fuel centers of electrical creation America can in fact create jobs in areas such as Afghanistan where the need for such electrical power will greatly increase the actual need for coal in such countries thus creating new jobs in America and Afghanistan and other countries around the globe.
The only issue stands in the way is religion. In order to make such a system work religion needs to bee left behind by America so the Afghani's would emplace the offer without fear of religion coming from America to take away what the Afghani's believe.
In order for this work America needs to drop the religious bullwarking and instead look at the problem at hand.
We have technology that will better our country as whole that will create an excess of coal here in America that can then be sold to Afghanistan so that they can build their infrastructure with their hands and their own belief.
Basically we would be saying "We have all of these mounds of coal just laying around not being used. You create your own coal burning facilities that will create jobs for your citizens and we will sell you all of the coal that we can at half the market price."
Dwight--nice try. COAL generation, in this country, is WAY cheaper than ANY non-fossil fuel method, and provides MANY jobs to AMERICANS.
why on EARTH would I want to pay more for MY utilities, in order to STILL mine (guess it's ok to dangerously mine it for OTHERS to use?) coal, pay the cost to TRANSPORT it halfway around the world, pay the cost to build the infrastructure in a primitive country, subsidize the cost of their utilities (a utility cannot make money if the ones who work for them are the only ones who can afford its product).
Meanwhile--which "NON-fossil fuels" do you suggest WE use? Would that be NUKES? Or possibly ethanol? which has the added 'bonus' of stripping our farmland (and poluting downstream with fertilizers, raising the cost of our food because the corn is all going to fuel production (which is ONLY attractive because of subsidies!) instead of to the American table or feed lot.
Or would you be loosely lumping wind and SOLAR as 'fuel'? Sorry bud, but I live in central MO, RIGHT ON the Lake of the Ozarks, only 6 miles from Bagnell Dam, which is a HYDRO dam, and it does not produce enough electricity to light ST. Louis! There IS no steady reliable prevailing wind, and there is NOT enough dependable sunshine year round for EITHER of those to be practical for well over half the country.
Nice try tho.
Are you aware how hard (even in peaceful times) it is to move stuff in and out of Afghanistan due to it's geographical location.