Thursday, October 07, 2004
Tax cuts for everyone!
(Except the people that really need them.)
In an act of pre-election largess, House and Senate negotiators approved a sprawling corporate tax bill on Wednesday that would shower corporations and farmers in politically sensitive states with about $145 billion worth of new tax cuts.
The Center for American Progress and Taxpayers for Common Sense run some of the numbers.
$27.9 BILLION FOR CORPORATIONS THAT EARN PROFITS ABROAD: The bill would allow corporations that have accumulated billions in untaxed overseas profits to bring the money back to the United States at a fraction of the normal tax rate. Even Treasury Secretary John Snow admits the provision discriminates "against companies that don't have large overseas operations." It would be a $20 billion windfall for giant corporations like Hewlett-Packard and Eli-Lilly. A separate provision would change the way overseas profits are calculated – at a total cost of $7.9 billion – saving General Electric Co. alone hundreds of millions of dollars.
$101 MILLION FOR NASCAR: The bill makes technical changes in the tax treatment of grandstand facilities, which will be worth $101 million to race track owners struggling to make ends meet.
$44 MILLION FOR IMPORTERS OF CHINESE CEILING FANS: The bill suspends a 4.7 percent duty on ceiling fans through 2006, a provision that primarily benefits Home Depot. Lobbyists for Home Depot also had the provision inserted into the administration's energy bill, but that bill failed to clear Congress.
$28 MILLION FOR CRUISE SHIP OPERATORS: A provision in the bill would allow cruise ship operators to delay paying taxes for certain products. The delay is worth $15 million for Carnival Corp. and $8 to $10 million for Royal Caribbean.
$27 MILLION FOR HORSE AND DOG GAMBLERS: The bill exempts foreign gamblers from paying taxes up front on their winnings at horse and dog tracks.
$11 MILLION FOR FISHING TACKLE BOX MANUFACTURES: Excise taxes on tackle boxes would be reduced from 10 percent to 3 percent. One of the biggest beneficiaries would be Plano Molding Co. – which just happens to be headquartered in House Speaker Dennis Hastert's district.
$9 MILLION FOR BOW AND ARROW MANUFACTURES: The bill eliminates taxes on "youth bows" that are not powerful enough to be used for hunting. It also reduces taxes for a device – called a broadhead – that is attached to the tips of arrows.
posted by chris at 1:47 PM
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