(Image source: The New York Times)

 

 

BY ZACH TOOMBS

 

 

The national political drama known as the fiscal cliff played out its last act late Tuesday evening — with the House pushing along the Senate’s bill to President Obama’s desk. But there are a few quirks within this deal that go beyond good old-fashioned middle class tax relief.

 

Read the fine print on Congress’ bipartisan deal to avert automatic income tax hikes for most Americans — and you find millions of dollars ending up in some unexpected places. [Video: C-Span]

 

According to ABC News, that includes $450 million in foregone revenue from extended tax breaks for Hollywood over the next year. That’s meant to encourage filmmaking in the U.S. by allowing directors to expense up to $15 million on their projects. [Video: Warner Bros. / YouTube]

 

The Naked Capitalism blog points to Section 312 of the bill, extending the so-called “seven year recovery period for motorsports entertainment complex property.” That means $43 million in breaks for those building racing tracks for NASCAR and other sports. [Video: ESPN]

 

And then there’s $222 million rum makers in Puerto Rico and the Virgin Islands won’t have to pay. The cliff deal returns taxes collected by the government on rum imported from those islands into the continental U.S.

 

There’s also hundreds of millions in tax breaks for railroads, motorcycle manufacturers and even algae-growers. It’s all found under the “Business tax extenders” section of the bill, along with an extension for the controversial “New York Liberty Zone” break.

 

That plan was meant as tax relief for lower Manhattan’s rebuilding projects post-9/11, but, according to Bloomberg, critics say “the bonds were little more than a subsidy for fancy Manhattan apartments and office towers for Goldman Sachs and Bank of America...” [Video: CBS]

 

In fact, $1.5 billion in tax-exempt financing went toward building Goldman Sachs’ headquarters on West Street. [Video: Al Jazeera]

 

The Congressional Research Service says, altogether these 200 tax breaks total up to $1.1 trillion in lost revenue for the federal government this year. That’s equal to the Congressional Budget Office’s projected federal deficit for this fiscal year.

'Cliff' Deal Gives Breaks to Hollywood, NASCAR, Rum Makers

by Zach Toombs
0
Transcript
Jan 2, 2013

'Cliff' Deal Gives Breaks to Hollywood, NASCAR, Rum Makers

(Image source: The New York Times)

 

 

BY ZACH TOOMBS

 

 

The national political drama known as the fiscal cliff played out its last act late Tuesday evening — with the House pushing along the Senate’s bill to President Obama’s desk. But there are a few quirks within this deal that go beyond good old-fashioned middle class tax relief.

 

Read the fine print on Congress’ bipartisan deal to avert automatic income tax hikes for most Americans — and you find millions of dollars ending up in some unexpected places. [Video: C-Span]

 

According to ABC News, that includes $450 million in foregone revenue from extended tax breaks for Hollywood over the next year. That’s meant to encourage filmmaking in the U.S. by allowing directors to expense up to $15 million on their projects. [Video: Warner Bros. / YouTube]

 

The Naked Capitalism blog points to Section 312 of the bill, extending the so-called “seven year recovery period for motorsports entertainment complex property.” That means $43 million in breaks for those building racing tracks for NASCAR and other sports. [Video: ESPN]

 

And then there’s $222 million rum makers in Puerto Rico and the Virgin Islands won’t have to pay. The cliff deal returns taxes collected by the government on rum imported from those islands into the continental U.S.

 

There’s also hundreds of millions in tax breaks for railroads, motorcycle manufacturers and even algae-growers. It’s all found under the “Business tax extenders” section of the bill, along with an extension for the controversial “New York Liberty Zone” break.

 

That plan was meant as tax relief for lower Manhattan’s rebuilding projects post-9/11, but, according to Bloomberg, critics say “the bonds were little more than a subsidy for fancy Manhattan apartments and office towers for Goldman Sachs and Bank of America...” [Video: CBS]

 

In fact, $1.5 billion in tax-exempt financing went toward building Goldman Sachs’ headquarters on West Street. [Video: Al Jazeera]

 

The Congressional Research Service says, altogether these 200 tax breaks total up to $1.1 trillion in lost revenue for the federal government this year. That’s equal to the Congressional Budget Office’s projected federal deficit for this fiscal year.

View More
Comments
Newsy
www3