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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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LOL this is funny. perks for this but none for schools. Yea Obama has everything under control. We have 4 schools closing 5 schools going to get fined for having oversized classes but yet we close more schools.
Yeah Obama is doing such a great job...
Wake up you DEM fools and REP airheads.
If movie theaters need money let them get it from the profits of the movie oh wait they need to give that to the actors.. The theaters need to go on strike to get more money from the money the movie makes and not tax payers money.
OBAMA YOU ARE A JOKE.........
This is just Washington doing what it does, pay off the fat cats that they really server. There is no way for the system to work as it was intended with the corrupt group that infests Washington today. We need to vote all the incumbents out and prove that the %1 that bribe them can’t keep them in office if they don’t do the peoples work.
Term limits need to be placed on all of Congress and the President needs to have the line item veto. There should be no campaign funding but what iis federally available and stiff penalties need to be in place for braking that law.
We the people do not own this county any longer as the framers of the Constitution intended but the %1 and lobbyists that lavish Congress with $$$$$ that get more $$$$$$$$$$$$ back at our expense.
Please let us vote every last incumbent out of office to prove to them once and for all that we run this county not the ones that legally bribe them under this corrupt!
the biggest special interest group is the government they have their hands in everybodies pocket,what will next years catch phrase be.... they already used fiscal cliff..watch out now we hear entitlements, to many items are in that group SOCIAL SECURITY!!!!!!to many things are hidden by the people who know whats best for us.wake up america ,stop being led around like sheep being led to slaughter, impeach all those phonies..
with the payroll tax increase , i will now have about thirty dollars less a week for spending on things i might like.gas ,food etc.
So you earn $78,000 a year and you're complaining about going back to the prior rate for Social Security.
head,try not to spend it all in one place,lol
just saying, that's thirty less going back into the economy and local businesses.
pighead, did you get a raise in the last 2 years? If you did, you are putting more into the economy.
WHAT! The Government passed a bill loaded with Pork, Waste, and Special Interest Perks!? NEVER!!!!
The Definition of Government - See also: Waste, Corruption, Slime,
examples of government: An overpaid organization of elected officials and employees that does very few things well and nothing economically. and or - An organization that forces dues on those which it governs by the way of a barrell of a gun or thru penalization which includes enslavement in prison.
Where you may find supporters of more goverment: - Democrats, Progressives, Liberals, Socialists, Communists.
Rethuglican's you lost AGAIN. LMFAO.
Rich...America lost again. Now obama owns it, if it didn't pass, it would of been the Republicans fault. Not anymore!! What will your President say for the next 4 years with all the spending? I can hear it now, You need to vote in a democRat President in 2016, because it's all President Bush's fault and we need more time.... sound familiar?
How did America lose? We avoided going back into a recession.
Avoided, or postponed long enough to let the cliff get a lot higher before we crash?
Wait a minute.... PResident Obama autobot signed this legislation while vacationing in Hawaii. Hmmmm
The Republicans in congress opposed and opposed without really saying why, perhaps, Boehner, should have published the laundry list provisions of this bill as it changes, including the individual sponsor so we can see the truth here. But that would be painful, exposing who are the credible politicians and those that should be voted out of office. It is creating political animosity within congress but that is what needs to be told. The truth.
It would have done no good for Boehner to tell the American people that the democrats were pushing porkfat onto the public. I am surprised that he is not being soley responsible for this travesty.
everyone out there in the U.S. has a chance to dispose a lot of the 112th congress,just walk to the poles,vote out who you think sucks,that would be every incumbent.113th also,aka new thieves on the block to be.
"Fiscal cliff deal also included plenty of perks for special interests"
Gotta pay off those Obama friends and supporters. The government parties on.
Do you really think NASCAR people are Obama friends and supporters?
Common....
Why bother?
By the way.....what would you call it if the wealthy got tax breaks from Mitt Romney....of course that wouldn't be "paying off friends and supporters"...then it is "sound fiscal policy".
Explain to me, Common, how investing in alternative energies equates to the government 'partying on'?
Well DoctorLogic let me explain it to you seeing that you are so far up Obama's a$$ you can't see.
Obama gave 150 million to a solor company in 3 years it closed down but the owner walked away with 31 million.
Now you tell me that is not paying off Obama friends...
Thats how they are parting on.
Need to change your name to Doctor up Obama's A$$...
Earth to dr. Maybe you didn't get the message Barrack Hussein Obama was elected president, not Romney.
shut, troll, common:
I can answer you all the same way because you are all equally as ignorant.....
I challenge any one of you to show me how we reduce dependency on foreign oil WITHOUT investing in alternative energies?
My guess is this is when you exit the conversation because you bozos don't really care about issues.....we could invest in alternative energy to reduce foreign dependency while simultaneously whacking away at unemployment. In other words, we become a stronger nation BOTH ways: we don't have to worry about other countries shutting off oil tanker shipping lines plus we get more people participating in the economy rather than drawing from it. Plus, to boot, we help the environment in the process.
You'd have to be a 100% moron to NOT invest in alternative energies.
Doctor illogic,
Do some research on the alternative fuel industry. Not one of these "green" companies actually make a legitimate profit. The profits are subsidized by government grants and huge tax breaks. Many of these subsidized companies turned around and made huge donations to the Democratic campaign funds. It's just a big shame and you've been sucked in.
DoctorBumbA$$
I guess you have not heard but we are the largest oil exporter now. And no I never said we should not invest but the tax payers should not invest a dime. This should come from oil companies, electric companies.
You do realize oil companies and electric companies have the largest profit than any company in the world so what I want you to do is tell me why my money should be invested and not their money..
I own an engineering company and if I need to grow with the changes I have to invest my money for new software or computers. But by what you are saying I can send you the bill next time right?
Oh I can't wait for your response if I even see one.
dr. logic, Drill baby, Drill. And take the keys to Michelles 747 away.
Still waiting Doc no response?
Come on you ran your mouth like you had logic but I guess you don't.....
You are a joke.
this is what happens when you vote in Democrats. Someday people will wake up.
I thought Obama said he was going to run all of the lobbyists out of Washington? As to Hollywood, they contributed millions to the Obama campaign, and they got $450 million back - that's how it works right? I bet a solar panel you don't see Rachel Maddow decry this travesty.
Of course this bill is full of pork. They have been doing it for years. There is not 1 single bill that goes through congress "CLEAN". Every bill is loaded with crap for some congressmans district. It's their secret way of getting around being responsible for what they do. Many times the amendment won't even have a sponsors name attached to it. That way there is no one to blame. It just "magically" appeared at the bottom of the bill. Term limits may be part of the solution but it's only by making them sign their name to any amendment and then holding them responsible for it will it ever change.
Oh and by the way where are the "Pig" and Roselle on this. We won't hear squat from either of them because it's hard to cheer for theives.
just more Washington BULL@!$%# ! When are these guys gonna get it ?
Maybe ,only the gun owners can get out country back and running again like it should be.
I don't get it. It is way over my head. The whole dam tax thing is rigged. Todays Congressmen and Senate are the worse I have ever seen. I always wondered through the years how do THEY do this? How do THEY get away with that? These people do what THEY WANT. I really would like to see Presidents have line item veto power. I think more would get done sooner. I think WE the PEOPLE have not much SAY or POWER at this time to do much to change the way things work at WASHINGTON D.C. I believe in the two party system. I expect the elected officals to do their jobs and represent THE PEOPLE better. WASHINGTON D.C. sucks! It's a sorry thing for America what the STATE of Affairs is there. Politics is who is screwing who. These rich people who control the American destiny are out of touch. They get NOTHING right. SHAME ON THEM. The whole tax system needs overhaul and reform. To think this is only at the federal level. That is only the tip of the iceburg. America has TAX PROBLEMS at all levels federal, state, and local. They play with OUR earned tax money like they are playing a game of Monopoly. It's seems just another game the rich and powerful will play with or without our consent. We the People are just ticket holding spectators. We don't even get a seat to watch the game. We observe from afar outside of the action. The rules of THEIR GAME is simple. Just one rule. KEEP CHANGING THE RULES. This TAX GAME will continue with NO END. No one will win. The game will go on.
I don't know about you. I am not satisfied. I want reform. I want stability. I do NOT WANT these QUICK FIXES. It is what it is. Yeah, RIGHT. Doesn't have to be this way. It just isn't RIGHT. Whatever IT IS. These smart people don't get it. They can afford to play the stupid game. Stupid is and Stupid does I say. The Dems and Repubs are dumb and dumber. I don't need another party of tea baggers or other outside sources to ad to the confusion and chaos. I want reform. To me this is personal. It's personal because I fill out and pay MY PERSONAL FEDERAL INCOME TAX, Social Security, and other tax based on a formula created BY THEM on the earnings I worked for. What! Because I work for slave weekly wages this IS NOT an investment? The investor, The business people have special rights and play the tax game differently? So complicated. To think at this time ALL the BIG NEWS is FEDERAL TAX and failures. Money TAXED beacuse of working Americans earning it. Slaveing for it. The country is run on THE TAX TAKE.For the ones in power to do with it as they PLEASE. The game goes on and on and on. It's a dog eat dog world. Big fish eat little fish. The Taxes I pay are eating a BIG CHUNK out of MY LIFE. These people are playing with MY MONEY in their game of life and are so out of touch with who I am. One thing certin. When THEY go on vacation, when they do whatever THEY DO, the tax money just keeps rolling in. Even when I die and can pay no more. I won't be missed. Somebody else will pay in my place. The same when business go out of business they are will continue to TAKE IN as much TAX dollars because the way te system works. The more they take in the more they spend the way THEY WANT. The good thing the way it works for THEM is to spend every rotten 1/2 cent of it, leave nothing left. Overspend so that there will always be a need to bleed and drain the Working American TAX PAYING citizen. This keeps them at a level of importance and gives them the added power they need to be WHO and WHAT THEY ARE. THEY are thieves of the night. Can't live with them and can't live without them.
I am THE AMERICAN TAX PAYING CITIZEN. Don't tread on me.
Fran, the president does have veto power, remember he was the last person needed to approve this bill
That bill couldn't have had perks. Obama said he would stop all this special interest payouts and loopholes. He said the bill would reduce the deficit. He said the rich don't pay their fair share. He said he could afford to pay more taxes meanwhile flew back to Hawaii for his 7 million dollar vacation paid by the taxpayers. Obama is a compulsive liar elected by the uninformed.
Seriously, Nascar? One of the most branded profitable industires. They don't deserva a dime!
What was Obama's Campaign slogan for 2012 '' Forward'' he is moving the entire country forward into even a deeper depression that future generations will be paying for many years. I can proudly say I didn't vote for him again. Does any of this news of pork in the Fiscal Cliff agreement really surprise you. Its been reported that the Sandy Relief Monies they voted for approval was loaded with Pork again not a surprise. Why cant they just vote for a bill without adding the minutia?????
Our Government officials all need to be fired their not doing their jobs so in the next election vote for the incumbent no matter what the party, that's the only way we can move Forward again we are stuck with several of them for the next 4 years
Actually, these three items may at least result in more jobs and therefore, more tax dollars. Not only will these industries employ people directly, but there should be a pay-out of jobs in ancillary areas, too.
leftisfascist,
Obama did quite well with that move. He got a lot of money back in campaign contributions.
Well chick if the company signed up to return all monies to the tax payers from the sale of the company and assets, and before any employee from CEO to entry level worker recieved a dime; cool loan them the money.
Another bill no one read. This happens so often that I have to believe our elected officials can't read.
Ive been to about a dozen NASCAR Races - NASCAR tracks need no tax break!!!!! -
Lets do the numbers ON ONE SPRINT CUP RACE WEEKEND
100,000 average attendance at an Sprint Cup NASCAR Race
The average fan drops $200-$300 On their GRANDSTAND Ticket, souvenirs, food, program, at the track.
That doesnt include The hundres extra they get for Fan Walks, RV Parking, Parking, Camping dump fees.
Add in the corporations and wealthy that rent VIP Booths
Add in the Race Sponsor which pays a chunk of the purse -
Add in the Advertisers paying for banners, Any TV exclusivity Contract - Pit Gate Fees.
Id Say your Average Sprint Cup Race a track brings in 50-100 Million dollars in ONE WEEKEND
And they only payout to the drivers less than 5 Million on the Purse and employees.
Contengecy sponsors payout much of the purse..
and upkeep for the year cannot cost more than 10 Million and that is a generous estimate.
So a rebate to big oil is fine but a rebate to green energy is bad??
no idiot, its all bad, get yourself a clue.
enough of the spending and tax breaks period.
did you get that!!
I see Republicans on here still can't answer a simple question.
I would guess that some Democrat somewhere tried to end the rebate to big oil but I doubt any Republican ever did.
And therin lies the problem.
"I would guess that some Democrat somewhere tried to end the rebate to big oil"
But you don't know that do you? You think maybe, sometime, possiblely some Democrat tried vto end the big oil subsidies. How about giving me a name. Which Democrat? When?
I was in the oil patch when the price of crude dropped below what it costs to pump it. Thousands were laid off and businesses closed. It is OK when the oil companies were losing money.
Most of New England uses heating oil. Why hasn't this been banned?
America was once a great idea, but there is no "We the People" anymore...we are a corporational (if that's even a word) government. It's truly sad to witness what's happened over the last 30-40 years.
Nascar? Cheap asparagus?
And they have us right where they want us - the regular people on both sides arguing with each other instead of banding together to change what used to be 'our' country.
I may not see the revolution in my lifetime, but it's coming.
BTW, here is something from the story Republicans seemed to have missed:
"Most of the tax breaks had been scheduled to expire on Dec. 31, 2011.."
i didnt miss it boy, your boy obama extended the bush tax breaks back then.
oh how he hated the dreadful bush tax breaks....lmfao
What the hell does that have to do with the Bush tax cuts?
really!!
those tax breaks your referring to are the bush tax breaks.
They are no longer the Bush tax cuts. It's all Obama's and the liberals now. We are all under the Obama tax rates now.
Interesting though how the liberals had to admit that the "Bush Tax Cuts" were for the middle class after all and took care of 98% of tax payers and not the top 2% as we were told these cuts were for the rich only...
"those tax breaks your referring to are the bush tax breaks."
So this is not Democratic pork. Thanks for proving that.
And there you have it folks. People like this are why the Republicans won't be winning a national election anytime soon. I just love it when the idiots show their true stripes.
AHHH, I see. You just joined and are grenade trolling. DFTFT folks
A large group of Baboons is called a Congress. Someone knew what that were doing when they chose to use that word to define our Gov.