Budget deal includes $17 billion of retroactive tax breaks


(From The Washington Examiner)

The bipartisan budget deal Congress is mulling would implement $17 billion in retroactive, temporary tax breaks that are separate from the $1.5 trillion net tax cut signed by President Trump in December.

In addition to hundreds of billions of dollars in new spending, the deal also would revive a raft of 30-plus temporary tax breaks commonly known as “extenders,” ranging from breaks for rum production in Puerto Rico and the Virgin Islands to those for racehorses.

Tax breaks are generally good things. Generally good things. They are certainly better than tax credits for which the taxpayer must pay. However tax breaks for individual companies, or for a special geographical area, and so on can absolutely be crony.

The tax extenders are ones that failed to make the cut in 2015 when both parties voted to make permanent many of the temporary tax breaks that had been re-upped many times over the years.

As a result, they are opposed by some conservatives, who view them as bad policy or corporate giveaways.

Freedom Partners, the free-market group backed by the Koch brothers, dismissed the breaks Thursday in a statement as “corporate welfare,” saying they should not be enacted in the wake of a tax overhaul meant to simplify the code.

It makes one wonder what the REAL deal was that was made on the spending bill on Friday morning.

Click here for the article.