Ahh, the lame duck session after a midterm election. Where the truly nasty business goes.
Senate Majority Leader Harry Reid (D-NV) has reached a compromise with House Republicans on a package of tax breaks that would permanently extend relief for big multinational corporations without providing breaks for middle or lower-income families, individuals with knowledge of the deal tell ThinkProgress.
Under the terms of the $444 billion agreement, lawmakers would phase out all tax breaks for clean energy and wind energy but would maintain fossil fuel subsidies. Expanded eligibility for the Earned Income Tax Credit and the Child Tax Credit would also end in 2017, even though the Center for Budget and Policy Priorities estimates that allowing the provisions to expire would push “16 million people in low-income working families, including 8 million children into — or deeper into — poverty.” The proposal would help students pay for college by making permanent the American Permanent Opportunity Tax Credit, a Democratic priority.
Meanwhile, two-thirds of the package would make permanent tax provisions that are intended to help businesses, including a research and development credit, small business expensing, and a reduction in the S-Corp recognition period for built-in gains tax.
The costs of the package will not be offset.
So roughly $300 billion for businesses, and the middle class gets hosed in the deal. Nice. The big loser, green energy, the big winner, oil.
Same as it ever was, too. Question is will Obama sign it?
The answer, thankfully, appears to be "no".
Obama objected and responded in an unusual way yesterday. The White House issued a veto threat before lawmakers released the plan publicly, siding with progressive groups and advocates for a lower budget deficit over his own party’s Senate leaders.
“The president would veto the proposed deal because it would provide permanent tax breaks to help well-connected corporations while neglecting working families,” Jen Friedman, a White House spokeswoman, said in an e-mail yesterday.
Good. We'll see how well this deal holds up now.