Fiscal Cliff Deal Passed By Congress After Republicans Cave

The legislation extends the “seven year recovery period for motorsports entertainment complex property”, which is to say it allows anyone who builds a racetrack and associated facilities to get tax breaks on it. NASCAR

This legislation contains an extension of special expensing rules for certain film and television productions”. It’s a relatively straightforward subsidy to Hollywood studios, and according to the Joint Tax Committee.  DISNEY

This legislation offers tax incentives for miners to buy safety equipment and train their employees on mine safety. Taxpayers shouldn’t have to bribe mining companies to not kill their workers.

Also, this bill contains subsidies for Goldman Sachs Headquarters – Extends “tax exempt financing for  York LibertyZ one,” which was a program to provide post-9/11 recovery funds. Rather than going to small businesses affected, however, this was, according to Bloomberg, “little more than a subsidy for fancy Manhattan apartments and office towers for Goldman Sachs and Bank OfA Corp.”

Bloomberg himself actually thought the program was excessive, so that’s saying something.

According to DavidCayJohnston, Goldman got $1.6 billion in tax free financing for its new massive headquarters through Liberty Bonds.

But my favorite part of the legislation is the $9B Off-shore financing loophole for banks – Very few tax loopholes have a trade association, but this one does. This strangely worded provision basically allows American corporations such as banks and manufactures to engage in certain lending practices and not pay taxes on income earned from it. According to this Washington Post piece, supporters of the bill include GE, Caterpillar, and JP Morgan. Steve Elmendorf, super-lobbyist, has been paid $80,000 in 2012 alone to lobby on the “Active Financing Working Group.” 

Then there are the tax credits for foreign subsidiaries –  An extension of the “Look-through treatment of payments between related CFCs under foreign personal holding company income rules.” This gibberish sounding provision cost $1.5 billion from 2010 and 2011, and the US Chamber loves it. It’s a provision that allows US multinationals to not pay taxes on income earned by companies they own abroad.

And much more .  The Joint Committee on Taxation in 2010 did an analysis of what many of these extenders cost. You can find that report here.
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