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.
Tags: Concord Coalition, Kill HR 4213, NASCAR, S corporation, Senator Max Baucus
Joe Kristan writes the Tax Update items, and any opinions expressed or implied are not necessarily shared by anyone else at Roth & Company, P.C. Address questions or comments on Tax Updates to
So let me guess you have no say about the 1.2 unemployed who don’t produce movies or own a racetrack and are worried about things like electicity, food, mental health and you are worried about what saving extra tax money for your boat? Honestly, you are obviously a smart individual, do you not see the lack of compassion and oversight in your argument?
Alex, this stupid tax increase doesn’t even affect me, so I’ll have to finance a boat (were I ever to want one) some other way. If congress wants to extend unemployment benefits, let them do it without packing it in a barrel of rotten pork and rotten tax policy.