How the Senate is looking into passing a bill that gives out 50 plus tax breaks. Keep makin’ it rain Senate, keep makin’ it rain!
Senate this week voted to open debate on a bill that would renew over 50 tax breaks that had expired earlier this year. In a 96-3 vote, the Senate is now set to talk about multiple tax breaks which range from teachers that pay out-of-pocket for classroom supplies to NASCAR track owners. The most populace tax break in the bill would be a provision that protects struggling homeowners who get their mortgages reduced from paying income taxes on past forgiven debt. The tax breaks, as you might have suspected, have gotten support from both Democrats and Republicans due to the wide range of individuals it would affect.
Though that doesn’t mean the bill is a done deal quite yet.
Even though it has the backing of the business community, Democrats and Republicans have disagreements to the amendments being attached to the bill. One of the more contentious amendments that Republicans want to add to the bill is a repeal of a medical device tax that helps fund the Affordable Care Act. Other amendments that Republicans would like to add include a permanent ban on state and local Internet access taxes.
While Republicans may not love everything about the bill, not supporting it could be a dangerous game. The bill is extremely popular due to the wide range of tax cuts it provides, so it would be hard for Republicans just to table the legislation.
The tax cuts would go into effect for the Spring 2014 tax returns and would be extended till the end of 2015. It would also add $85 billion to the budget deficit, so deficit hawks might feel differently about the bill. But that remains to be seen.