Weirdest Parts of "Fiscal Cliff" Bill

1/3/2013

 

Ten Weirdest parts of the “fiscal cliff” bill.

I don’t generally pay too much attention to politics or world affairs, but I happened upon an article whose title above was too hard to resist reading. Timing is everything because just yesterday I sent a notice to all my drivers that their paychecks were going to get smaller starting next week.

So forgetting the big stuff in the bill let’s explore some, but not all, of the corporate tax breaks and provisions that managed to get pulled into the bill.  I didn’t know about “tax extenders” or the roughly $205 billion in tax breaks for corporations.

Nascar.  Sec. 312 extends the seven year recovery period for motorsports entertainment complex property”.  Or putting it simply allows anyone who builds a racetrack will get a tax break. This is projected to cost $43 million over two years.

Railroads.  Sec. 306 provides tax credits to certain railroads for maintaining their tracks.  This is worth roughly $165 million a year.

Disney.  Sec. 317 is an “extension of special expensing rules for certain film and television productions.  Clearly a subsidy to Hollywood studios and is projected to cost $150 million for 2010 and 2011.

Mining.  Sec. 307 and 316 offer tax incentives for miners to buy safety employment and train their employees on safety.  Really?

Goldman Sachs.  In a nutshell Goldman got $1.6 billion in tax free financing for their new massive headquarters through Liberty Bonds.

Tax Credits for Foreign Subsidiaries.  This provision cost $1.5 billion from 2010 and 2011.  It is a provision that allows US multinationals to not pay taxes on income earned by companies they own abroad.

Banks.  This allows American corporations such as banks and manufacturers to engage in certain lending practices and NOT pay taxes on income earned form it.  Supporters of the bill include GE, Caterpillar and JP Morgan.

Rum Tax.  Congress currently levies an excise tax worth $13.50 per gallon on rum produced in or imported to the United States.  Most of that money is transferred to Puerto Rico and the Virgin Islands who use the revenue to support their rum industries.  In 2009 this tax raised $547 million.

Electric Scooters.  Section 403 of the bill extends a credit for 2 or 3 wheeled plug in electric vehicles. 

What makes me angry?  That my drivers, who work hard and have mouths to feed, are going to receive less in their paychecks this year.  But we certainly don’t want the corporations to have to suffer along with them.  Again, I really do feel sorry for the little guy, for it seems that he perpetually gets screwed.

P