Advocates of HR 4213, the “extenders” mish-mosh, say that they have to pass the hideous barrel of recycled pork, and its attendant tax increases on private equity and small professional S corporations, to save jobs. Howard Gleckman calls shenanigans on this argument at TaxVox:
Start with the roughly $32 billion in expiring tax provisions (aka the extenders) that the bill would continue for another year (or in a few cases two). Some of my favorites: $46 million in tax subsidies for movie producers and $38 million for NASCAR racetrack owners. As I have written in the past, most of these highly targeted subsidies will do little or nothing to create new jobs. They will, however, provide a financial windfall to their recipients. The other day, Bob Bixby of the Concord Coalition had a suggestion: Kill the Extenders. That’s not a bad idea.
In fact, that’s an excellent suggestion. I wonder why nobody has thought of that before.
Unfortunately, Senator Max Baucus managed to attract a few more votes for the bill yesterday by redistributing the pork. After the bill only got 45 of the 60 needed votes Wednesday, it got 56 votes yesterday. Tax Analysts reports ($link):
The amendment contained provisions to increase taxes on carried interest income and subchapter S shareholders that were watered down from Baucus’s first version. It also included less deficit spending, and gained more support than the earlier version. But its changes were not enough to satisfy a crucial group of centrist lawmakers who said before the vote that they were still unhappy with its deficit impact.
If your congresscritter votes for HR 4213, it means they care more for Hollywood and NASCAR than they do for your little professional practice. Tell them so.