Congressional Democrats are taking the lead to renew a list of long-dead tax subsidies at the behest of powerful corporate lobbyists.
Their plan is to attach the long-sought-after corporate tax subsidies-called "Tax extenders"-to a bill that expands welfare spending.
There are other subsidies as well-for instance, for an American Samoan tuna plant; a renewed program for low-income areas that government research has repeatedly found to be ineffective; an increased tax on coal; and a paid family leave subsidy that acts as a windfall tax benefit, as it is almost exclusively used by businesses that are already providing leave in the free market.
These bills would also expand the largest spending program for low-income households-the earned income tax credit-by about $105 billion over 10 years if the two-year expansion is made permanent.
This would accelerate the expiration of the temporary relief from the estate tax that was included in the 2017 tax cuts.
Even if tax credits worked as they are intended, periodic temporary extensions are a very poor way to construct tax policy, budget policy, and economic policy.
Reviving these currently-dead tax extenders would hand a win to the swamp.
https://www.dailysignal.com/2019/06/19/democrats-have-cooked-up-an-uglier-than-expected-subsidy-bill/
Their plan is to attach the long-sought-after corporate tax subsidies-called "Tax extenders"-to a bill that expands welfare spending.
There are other subsidies as well-for instance, for an American Samoan tuna plant; a renewed program for low-income areas that government research has repeatedly found to be ineffective; an increased tax on coal; and a paid family leave subsidy that acts as a windfall tax benefit, as it is almost exclusively used by businesses that are already providing leave in the free market.
These bills would also expand the largest spending program for low-income households-the earned income tax credit-by about $105 billion over 10 years if the two-year expansion is made permanent.
This would accelerate the expiration of the temporary relief from the estate tax that was included in the 2017 tax cuts.
Even if tax credits worked as they are intended, periodic temporary extensions are a very poor way to construct tax policy, budget policy, and economic policy.
Reviving these currently-dead tax extenders would hand a win to the swamp.
https://www.dailysignal.com/2019/06/19/democrats-have-cooked-up-an-uglier-than-expected-subsidy-bill/
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