Bipartisan Bill on Tax Breaks (Well… Kind Of)

tax break

If the Republicans aren’t careful, this could be President Obama’s third veto. Hold up, really? This would only be his third veto?!?

 

 

A bipartisan bill is coming through Congress?! Preposterous!

 

Oddly enough, it looks to be true.

 

House Republicans and Nevada’s Senator Harry Reid (along with his staff) are close to negotiating a deal that would create tax breaks that are worth $44 billion over a ten year period. The deal would make some of these tax breaks permanent – with most of these tax breaks helping corporations – while not extending populous tax breaks as the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC). Still a bipartisan bill that everyone’s behind, sounds like a win-win on all fronts! Well, not so fast.

 

President Obama said last Tuesday that if the bill were to be passed by Congress, he would veto the bill. The White House echoed similar sentiments explaining that the bill would “provide permanent tax breaks for well-connected corporations while neglecting working families.”

 

Essentially there are two factors in play. On one hand you have conservatives wanting to extend the tax breaks for big businesses that lapsed about a year ago. It was assumed by many lobbying groups and corporations that these tax breaks weren’t just economic stimulus for the 2008 recession, but would be reinstated by the end of this year. On the other hand you have liberals that want to make the CTC and the EITC permanent. Right now the Congress has only extended them till the end of 2016.

 

These negotiations are definitely a major push/pull in terms of party ideology, but considering Sen. Reid’s staff was willing to give into many of the Republicans’ demands just shows how the power structure has changed in Congress in less than a month following the 2014 midterms.

 

If the bill were passed, it would be the third veto issued by President Obama during his presidency. The past two vetoes came during his first term on subjects regarding speeding home foreclosures and bureaucratic oversight. This potential veto would, without a doubt, be the most significant of his presidency.

 

With a threat of a presidential veto however, it’s being reported that both parties are back to the negotiating table once again. With all the principle players in the mix, this could be a look in how the next two years could be in terms of law making.

 

 

(Photo Credit: Google Images)

 

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