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Motorsports Racetrack Property Aid? Puerto Rico Rum Taxes? In the Economic Rescue Bill?
October 02, 2008 12:22 PM
The Senate Finance Committee has published a summary of some of the additions to the Emergency Economic Stabilization Act.
There are many provisions in the bill that will directly benefit millions of Americans -- what's called the "AMT patch," for instance, which will protect 20 million middle class Americans from seeing a tax increase in 2009.
Or tax deductions for tuition, and for teacher expenses.
Corporations will see extensions of popular tax cuts -- for research and development, or renewable energies.
But there's also some other stuff.
My colleague Z. Bryon Wolf points out that it bears mentioning that all of the following provisions were in the "tax extender" package the Senate (and the House) had already voted on, but were arguing over whether or not to "pay for."
But what's in here also bears mentioning:
* Rum Excise Taxes to Puerto Rico and the Virgin Islands -- Cost: $192 million over 10 years
Current law imposes a $13.50 per proof gallon excise tax on distilled spirits produced in or imported into the United States -- of which $13.25 per proof gallon was made as a payment to Puerto Rico and the Virgin Islands until the end of 2007, after which it was lowered to $10.50 per proof gallon. This retroactively extends that provision from Dec. 31, 2007, through the end of 2009.
* American Samoa Economic Development Credit -- Cost: $33 million over 10 years
Certain domestic corporations operating in American Samoa were eligible for a possessions tax credit, which offsets their U.S. tax liability on income earned in American Samoa from active business operations, sales of assets used in a business, or certain investments in American Samoa. The tax credit expired on Dec. 31, 2007. This retroactively restores it and extends it until the end of 2009.
* Extend and Expand 50% Tax Credit for Certain Expenditures for Maintaining Railroad Tracks -- Cost: $331 million over ten years
Restores to certain railroads a tax credit equal to 50% of gross expenditures for maintaining railroad tracks that they own or lease.
* 7-Year Recovery Period for Certain Motorsports Racetrack Property -- Cost: $100 million over 10 years
Extends a special 7-year cost recovery period or property used for land improvement and support facilities at motorsports entertainment complexes.
* The Wool Trust Fund -- Cost: $148 million over ten years
Extends a provision that reduces import duties on a limited quantity of imported wool fabrics and places duties otherwise collected on the import of certain wool products into the Wool Trust Fund, which promotes the competitiveness of American wool.
* Special Expensing Rules for Certain Film and Television Productions -- Cost: $81 million over 10 years
Under current law, a producer can elect to take a single-year deduction of up to $15 million in production costs incurred in the U.S. If the production costs are over $15 million, this deduction does not apply. The maximum deduction is increased to $20 million if the costs are significantly incurred in economically depressed areas. No other depreciation or amortization is allowed for a production for which this deduction is taken. The provision expires Dec. 31, 2008. The proposal would extend the provision to the end of 2009.
* Provisions Related to Film and Television Productions -- Cost: $397 million over ten years
Under current law, many film and television show production companies are unable to take advantage of the domestic production deduction. The proposal allows more film and television show production companies to use the domestic production deduction, which will encourage more production of films and television productions.
* Excise Tax Exemption for Wooden Practice Arrows Used by Children -- Cost: $2 million over 10 years
Current law imposes an excise tax of 39 cents, adjusted for inflation, on the first sale by the manufacturer, producer, or importer of any shaft of a type used to produce certain types of arrows. This proposal would exempt from the excise tax any shaft consisting of all natural wood with no laminations or artificial means to enhance the spine of the shaft used in the manufacture of an arrow that measures 5/16 of an inch or less and is unsuited for use with a bow with a peak draw weight of 30 pounds or more.
* Income Averaging for Exxon Valdez Litigation Amounts -- Cost: $49 million over 10 years
Allowing commercial fishermen and other individuals whose livelihoods were negatively impacted by the 1989 Exxon Valdez oil spill to average any settlement or judgment-related income that they receive in connection with pending litigation in the federal courts over three years for federal tax purposes. The bill would also allow these individuals to use these funds to make contributions to retirement accounts.
The Senate Finance Committee issued a statement saying that these are not "'earmarks.' According to the Honest Leadership and Open Government Act of 2007, a tax earmark or limited tax benefit means any revenue provision that (A) provides a Federal tax deduction, credit, exclusion, or preference to a particular beneficiary or limited group of beneficiaries under the Internal Revenue Code of 1986; and (B) contains eligibility criteria that are not uniform in application with respect to potential beneficiaries of such provision."
- jpt
October 2, 2008 | Permalink | Share | User Comments (287)
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Absolutely ridiculous and infuriating: it seems the Senate can't even vote to ADJOURN without passing some special interest earmark appropriation in the process. Any senator of character should repudiate this bill; the others should apologize to the American people. Heck, that just might BUILD character!
Posted by: Riverside Bryants | Oct 2, 2008 8:27:25 PM
I suspect that Obama and McCain may have striken a deal, that they vote on the same page on the $850 Senate revised TARP bail out bill. This bill is so huge and they do not want to take side and risk their candidacy. Once again, when a politician personal interest is involved, he/she will not care about the constituents.
Posted by: Sutter197 | Oct 2, 2008 8:23:38 PM
McCain didn't vote for this bc of the dems. He voted for this to stay in line w/ Bush, support these lobby groups, and the fat cats that's receiving this $. This vote really hurt his campaign. Glenn Beck has been all over all day.
Posted by: Mac | Oct 2, 2008 8:22:26 PM
This problem has been coming on for years. Congress was warned many times and need I say. The Dems blocked any form of reform. Even blocked Clinton from it only to be pushed into making it worse. In FACT! Obama worked at a law firm the was suing banks that didn't want to loan money to non credit wothy people. He was the lawyer that represented the law firm in the suits. This is a TRUE FACT that CAN be backed up! You will not see anything about this on CNN,ABC, or any of the elite media channels.
Posted by: Vagent | Oct 2, 2008 8:21:21 PM
How did Obama, McCain, and Biden vote?
Posted by: Cheri Harding | Oct 2, 2008 8:20:59 PM
This bill gives up too much of our freedoms and doesn't address how we will get them back from the Treasury. This is the Patriot Act all over again.
Posted by: Brent | Oct 2, 2008 8:19:53 PM
John McCain...make them famous. Tell us their names. I'd like to know who proposed these earmarks. Then I'd like to know why my senators voted to support this despite the flood of email/calls to the contrary.
Posted by: Catherine | Oct 2, 2008 8:19:24 PM
Hate to say it, but McCain HAD to vote for it. After saying we needed it. He had no choice. Otherwise the Dems would have been all over him.
Posted by: Vagent | Oct 2, 2008 8:14:36 PM
This problem has taken months or longer to develop. But suddenly Bush notes it and it must be fixed immediately and with large sums and unchallenged authority given to a few.
Why wasn't this country's economists given time to study this problem and offer solutions? Than if a bailout was still needed, then ok. There is NO excuse for the pork. Ever.
Posted by: Carolyn | Oct 2, 2008 8:14:10 PM
Welcome to our world. People in Illinois are used to it. It doesn't matter what's right or wrong. It's all about taking care of the people who "paid" to get them there and now you are seeing that paybacks are a b**ch.
Posted by: RL in Illinois | Oct 2, 2008 8:13:15 PM
"I wonder if this will cost Obama and McCain votes."
-----
If the mass of the people understand what the Senate VOTED, it should cost them ALL the votes.
If the disaffected all vote for Nader, it'll be a WHOLE new deal.
Posted by: Belle Starr | Oct 2, 2008 8:12:10 PM
Think we are screwed now? Wait till next year! Election over, new president, can afford to give a tax break now! Have to pay for this mess!!! Sorry, have to raise some $$. Going to have to raise taxes!!
Posted by: Vagent | Oct 2, 2008 8:11:55 PM
Well Denny, I can tell you that my abesentee ballot is sitting here unmarked. I've been a decided voter. But this has lended me pause. I don't know if I will vote at this point, for either one.
Posted by: Sandy | Oct 2, 2008 8:10:12 PM
This administration has been so corrupt. Paulson's power is unprecidented. Now our Congress is complicit.
I wonder if this will cost Obama and McCain votes.
Posted by: Denny | Oct 2, 2008 8:08:11 PM
Come to think of it! Maybe that is why Obama thinks we should learn spanish. Invade Mexico next.
Posted by: Vagent | Oct 2, 2008 8:07:34 PM
I think we should all migrate to Mexico. I think the peso has more value than the dollar now.
Posted by: Vagent | Oct 2, 2008 8:05:22 PM
What happened to The Maverick? His platform has been to end the earmarks... 'You will know their names!' Yeah right.
Posted by: Kimiki | Oct 2, 2008 8:05:11 PM
Has anyone thought about how much power we are giving to the Treasury? There is nothing in this bill about when this will stop and how we will get our freedoms back.
Posted by: Alan | Oct 2, 2008 8:03:41 PM
I guess American taxpayers have to hire a lobbyist to get a tax reduction.
This gov't most certainly isn't representative of the people.
Posted by: Lori | Oct 2, 2008 8:02:57 PM
Money? We don't need any stinking money. The government will take care of us!!! Food line forms here-->
Posted by: Vagent | Oct 2, 2008 8:02:55 PM
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