Phone: 800-862-8529                                                          Fax: 509-545-0909
Weather |  Market News |  Headline News |  DTN Ag Headlines |  AgBizDir.com |  Crops |  Futures |  Portfolio |  Futures Markets |  Quotes 
 
  Home  
  Producer Account Login  
  About Us  
  PNW Charts  
  Daily Commentary  
  Real Time Quotes  
  Calendar  
  Contact Us  
  Tri Cities Grain Photo Gallery  
  LDP  
  Administrative Login  
 
 
Printable Page Headline News   Return to Menu - Page 1 2 3 5 6 7 8 13
 
 
WH Veto Threat Shelves Tax Plan        11/26 06:21

   A White House veto threat appears to have put on ice a congressional effort 
to permanently renew a handful of generous tax breaks for businesses and 
individuals. Officials say that the plan, brewing behind closed doors on 
Capitol Hill, favored corporations over the working class.

   WASHINGTON (AP) -- A White House veto threat appears to have put on ice a 
congressional effort to permanently renew a handful of generous tax breaks for 
businesses and individuals. Officials say that the plan, brewing behind closed 
doors on Capitol Hill, favored corporations over the working class.

   The unusual veto threat came before the parameters of a potential agreement 
were even revealed.

   Speculation on Capitol Hill on Tuesday focused on a potential agreement to 
permanently enact tax breaks on business investments in new equipment and 
research and development as part of a plan that would renew dozens of expired 
tax breaks for businesses and individuals both.

   The White House immediately weighed in with a veto threat, saying Congress 
should also make permanent a top Obama administration priority: extending more 
generous tax credits for the working poor and people with children. They were 
left out of the potential pact and expire at the end of 2017. Democrats fear 
they won't be renewed if Republicans control Congress or retake the White House.

   "The president would veto the proposed deal because it would provide 
permanent tax breaks to help well-connected corporations while neglecting 
working families," deputy White House press secretary Jennifer Friedman said. A 
senior White House official said the president was personally working the 
phones to try to kill the plan.

   Negotiations on renewing the expired tax breaks were expected to continue.

   At issue are dozen of expired tax breaks, known as "extenders" in Washington 
parlance. They are generally renewed every year or two and have broad political 
backing from both Democrats and Republicans. They expired last year and action 
now would extend them retroactively in time for individuals and businesses to 
claim them in the upcoming filing season.

   In trade-offs that angered the administration but gave political wins to top 
Senate Democrats, the emerging pact would also have made permanent tax breaks 
for college tuition, parking and transit subsidies, and a deduction for state 
and local sales taxes.

   "The president has consistently stated his opposition to giving hundreds of 
billions of dollars of tax cuts primarily geared toward corporations while 
leaving middle-class families and those struggling to get into the middle class 
behind," said Jason Furman, chairman of the White House Council of Economic 
Advisers.

   The possible agreement, Democratic aides said, was being negotiated between 
House Republicans and top Senate Democrats like outgoing Majority Leader Harry 
Reid, whose state of Nevada benefits from the state and local sales tax 
deduction. Senate Democrats were seeking the best deal they could while 
retaining leverage, but the emerging outline infuriated the White House because 
it was so favorable to businesses.

   The aides insisted on anonymity to discuss ongoing talks.

   The cost of the outline under consideration could have reached $450 billion 
over the coming decade and would have been financed entirely by adding to the 
$17.9 trillion national debt.

   "The price tag is a result of irresponsible horse trading whereby each side 
got to claim its favorite tax break without paying for it," said Maya 
MacGuineas, president of the Committee for a Responsible Federal Budget, which 
advocates for lower deficits.

   Dozens of other tax perks would have been extended through the end of next 
year, including breaks for race horse owners, manufacturers of electric 
motorcycles and improvements at NASCAR tracks. Other extenders include tax 
credits for biodiesel, for coal produced in Indian country, and breaks for 
energy-efficient homes and commercial buildings.

   Many of the breaks have been criticized as wasteful, inefficient and 
archaic, but their collective weight has always powered them through Congress. 
Critics did claim one casualty: a much-criticized tax credit for wind power, 
which would phase out in three years. Some of the biggest supporters of the 
credit, however, have been Midwestern Republicans.


(KA)


 
 
Copyright DTN. All rights reserved. Disclaimer.
Powered By DTN