Veronique de Rugy | Cronyism lives on in cliff bill

Here is a list of some of the tax credits:

  • $78 million to retain an accelerated tax write-off for owners of NASCAR tracks
  • $62 million tax credit for companies operating in American Samoa
  • $222 million tax rebate for rum distillers
  • $222 million in accelerated depreciation for businesses located on Indian reservations
  • $430 million over two years in tax breaks for film and television producers who incur production costs incurred in the United States, with a special bonus if the costs are incurred in economically depressed areas in the United States
  • $59 million in tax credits for cellulosic biofuels
  • $2.2 billion in tax credits for biodiesel and “renewable diesel”
  • $7 million in consumer tax credits for buying plug-in motorcycles
  • $154 million for the manufacturers of energy-efficient appliances
  • $650 million in tax credits for builders of energy-efficient homes
  • $12 billion in wind-energy-production tax credits

If you haven’t read it yet, take a look at this great piece by the Washington Examiner’s Tim Carney  that explains how these tax credits came to be included in the fiscal-cliff bill. This is particularly depressing when you consider how all these subsidies distort markets, make us poorer, and serve no other purposes than to enriching a few well-connected firms.

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