Debt Wish: Loop Fiasco

Debt Wish: Loop Fiasco

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Debt Wish: Loop Fiasco

President Obama on Sunday called for closing tax loopholes in order to increase revenue and reduce the federal deficit. But just over a month ago Washington passed a deal to avert the fiscal cliff that included a host of tax breaks for special interests, while forcing every American to pay a little more.  So when President Obama says we need to close the loopholes to increase revenue, will these sweetheart giveaways be on the chopping block?  Somehow we doubt it.

OBAMA CALLS FOR INCREASED REVENUE BY CLOSING TAX LOOPHOLES

President Obama: Let’s Close Tax Loopholes. “President Barack Obama said there is ‘no doubt’ the government needs new revenue from closing tax ’loopholes’ and limiting deductions, along with enacting spending cuts, to reduce the federal deficit.” (Roger Runningen, “Obama Says U.S. Needs Revenue Along With Spending Cuts,” Bloomberg, 2/4/13)

FLASHBACK: FISCAL CLIFF DEAL INCLUDES BILLIONS IN TAX LOOPHOLES

Fiscal Cliff Bill Extends Tax Cuts For Select Few. “…The ‘fiscal cliff’ bill that passed Congress on Tuesday contained a bonanza for single-issue lobbyists, extending supports for Puerto Rican rum distillers, Hollywood studios, tribal-lands coal, electric-scooter makers and other corporate interests that Congress will subsidize through the tax code for another year or two.” (Editorial, “Congress Gives Out End-of-Year Perks to Interest Groups, Washington Post, 1/2/13)

$100 Billion In Special Tax Credits. “… Under the plan, the federal government would eat nearly $100 billion in forgone tax revenue over the next two years by extending special tax credits for select businesses that had been set to expire.” (Devin Dwyer, “’Fiscal Cliff Deal Also Doles Out Millions for Hollywood, Railroads, Rum Producers,” ABC News1/1/13)

$430 Million For Hollywood. “$430 million for Hollywood through ‘special expensing rules’ to encourage TV and film production in the United States.  Producers can expense up to $15 million of costs for their projects.” (Devin Dwyer, “’Fiscal Cliff Deal Also Doles Out Millions for Hollywood, Railroads, Rum Producers,” ABC News1/1/13)

$59 Million For Algae Growers. (Devin Dwyer, “’Fiscal Cliff Deal Also Doles Out Millions for Hollywood, Railroads, Rum Producers,” ABC News1/1/13)

$331 Million For Puerto Rico And The Virgin Islands Rum Subsidies. (Devin Dwyer, “’Fiscal Cliff Deal Also Doles Out Millions for Hollywood, Railroads, Rum Producers,” ABC News1/1/13)

Extends Tax Credit For Indian Coal Facilities. (“Other nuggets in the fiscal cliff bill: Rum, electric vehicles and motor sports,” CNN Political Ticker, 1/1/13)

Extends Tax Credit For Wind Energy Industry. (Kathleen Caggiano, “Incentives Watch: Fiscal Cliff Legislation Temporarily Bolsters Renewable Energy Industry,” Bloomberg BNA, 1/9/13)