Dec 02, 2015
Little Difference Between Tax Extender Package and Clinton’s Political Pandering
Post by Derek Yale
The Wall Street Journal recently criticized Hillary Clinton for doling out “tax favors to her preferred voter groups.” The Washington Post said, “if there is a social or economic need, Democratic presidential front-runner Hillary Clinton has a tax credit to match.”
Voters may be used to hearing this kind of pandering from politicians running for office, but she’s not the only one working to advance special interests at the expense of others. Congress is poised to soon consider a package of tax extenders that does exactly that.
For over three decades, Congress has been passing annual or biennial tax extender packages to prop up a few select groups. This year, they’ll consider over 50 separate tax credits, for an overall handout of at least $95 billion over the next decade. It will be even more if these carve outs are extended permanently.
These tax extenders are essentially a wish list of loopholes for special interests who have the right connections, and they come at the expense of hardworking taxpayers.
The fact is, there’s little difference between the campaign trail pandering of Mrs. Clinton and the special interest pandering that’s going on in Washington–and both are good reasons for real tax reform that peels back the mountains of red-tape that pollute the tax code today.
Here’s a small sample of what you’ll find in the tax extenders: a Hollywood deduction up to $20 million for shooting films and television shows in specific locations, $95 million to support motorsports entertainment complexes, and $10.5 billion for renewable energy companies similar to Solyndra.
What hardworking Americans deserve is real reform across the board–tax reform that helps out everyone, not just a select few.
Americans would all be better off if Congress would end tax carve outs and pass comprehensive tax reform with lower, simpler corporate and personal income tax rates. This would benefit everyone; it would contribute to economic growth by boosting the competitiveness of American businesses, it would keep companies in the U.S., and it would raise incomes by putting more money in hardworking Americans’ pockets.
Rather than supporting policies that favor special interests, like many of Mrs. Clinton’s proposals, lawmakers must be sure to work in the best interests of all Americans.