Thoughts on Tax Compromise
The new 112th Congress will have to pass new tax legislation that holds the line against all the other negative provisions of the current deal, such as yet another unpaid-for extension of unemployment benefits (which perversely only helps perpetuates long-term unemployment).
Ditto for all the goodies progressives in the Congress are now busily adding, such as subsidies for windmills in California (already in the tax extenders вЂ“ or you need to say even larger ethanol subsidies). All this came on the back of the extension of stimulus tax credits, which expanded the refundability of the Earned Income Tax Credit and the Child Tax Credit, and created the new refundable American Opportunity Tax Credit.
And, to be sure, including goodies for the whole liberal power base that were already there as part of the annual tax extenders package: the Indian employment tax credit; the railroad track maintenance credit; the seven-year recovery period for motorsports entertainment complexes; the expensing of environmental remediation costs; the deduction allowable with respect to income attributable to domestic production activities in Puerto Rico and the tax incentives for investment in the District of Columbia.
Is there a progressive protected group that hasnвЂ™t been laden with pork in this deal?