Posts Tagged ‘tax extenders’

If Congress Lets Firms Expense Investments, It Should Take Away Their Interest Deduction

Egged on by business lobbyists, congressional tax writers seem increasingly interested in allowing firms to rapidly write off the cost of their capital investments. Especially in the House, lawmakers would allow small businesses to expense the full cost of their investments in the year they are acquired, and let larger firms heavily front-load tax depreciation […]

Why Most Tax Extenders Should Not Be Permanent

What to do about the tax extenders—or, as my colleague Donald Marron calls them, the “tax expirers”? Restoring the current crop (most of which expired on December 31) for 10 years would add about $900 billion to the deficit. House Ways & Means Committee Chair Dave Camp (R-MI) and Senate Finance Committee Chair Ron Wyden […]

Dave Camp’s Plan for the Expired Tax Provisions: An Almost-Good Idea

House Ways & Means Committee Chair Dave Camp (R-MI) has a plan for what to do with scores of now-expired tax subsidies that are sitting in Congress’ lap. He wants to review each one on its merits and either make it permanent or (by implication at least) kill it. Camp is on to something, although […]

Fiscal Reality Check: Will Congress Pay for the Tax Extenders and the Doc Fix?

After it returns from Spring Break next week, Congress may face two big fiscal reality checks. It will have to decide whether to temporarily extend scores of expiring tax provisions and what to do about permanently adjusting the formula Medicare uses to pay physicians (the “doc fix”). Combined, these two measures would add about $65 billion to the […]

Pay to Extend Unemployment Benefits? Why Not Pay to Extend Temporary Tax Breaks Too?

In the battle over whether to extend long-term unemployment benefits, one of the Republican talking points is: Sure, we’ll consider an extension, but it must be paid for. That’s a fine idea. Here’s another: In exactly the same way, Congress should offset the cost of restoring dozens of temporary tax breaks that expired on Dec. […]

Whither the Tax Extenders?

In three weeks, more than 60 expiring tax provisions will…expire. At least for a while. It isn’t unusual for these mostly-business tax breaks to temporarily disappear, only to come back from the dead a few months after their technical expiration. But this time businesses are more nervous than usual. Their problem: Congress may have few […]

Can Expiring Tax Provisions Save the Budget Talks?

There is lots of buzz around Washington about whether a laundry list of expiring tax provisions could be the key to a modest budget agreement. Sadly, it is hard to see how.   The theory goes like this: Democrats might agree to some cuts in programs such as Medicare if Republicans swallow some new revenues. […]

How Washington Can Turn a Tax Increase into a Tax Cut by Leaping Off the Fiscal Cliff

In the strange alchemy of Washington, Congress can magically turn a tax increase into a tax cut.  And to make it happen, all it has to do is…nothing.      Yesterday, Senator Patty Murray (D-WA) told an audience at the Brookings Institution that she would prefer to let the government tumble over the fiscal cliff at […]

The Wide Tax Reform Gulf Between Baucus and Camp

Yesterday, Senate Finance Committee Chairman Max Baucus (D-MT), who rarely gives public speeches, laid out his agenda for tax reform. Just for fun, I compared what Baucus told the Bipartisan Policy Center to a speech House Ways & Means Committee Chairman Dave Camp (R-MI) delivered just three weeks ago to a group of Washington lobbyists. […]

The “Tax Expirers”

Today I had the chance to testify before the Select Revenue Measures Subcommittee of the House Ways and Means Committee about a perennial challenge, the “tax extenders,” which really ought to be known as the “tax expirers.” Here are my opening remarks. You can find my full testimony here. As you know, the United States […]