Surprising Wasteful Clauses in the “Fiscal Cliff” Bill
The legislation reportedly contains $205 billion in tax breaks for corporations, including:
- $43 million over two years for owners of motorsports entertainment complex properties (read: NASCAR racetracks) engaged in construction.
- $165 million a year for railroads to maintain their tracks.
- $150 million in deductions for Hollywood studios that film in low-income communities of just in the United States.
- $9 billion a year to help banks and manufacturers “engage in certain lending practices and not pay taxes on income earned from it,” according to Naked Capitalism. Specifically, the bill allows the banks and multinationals to defer paying taxes on foreign income, thus encouraging the creation of jobs outside the United States.
- An increase in the import tax on rum from Puerto Rico and the Virgin Islands to benefit rum distillers in these U.S. dependencies.
- Tax incentives for mining companies to buy safety equipment that they should be buying anyway.
- $1 million a year in tax credits for coals companies that mine on land owned by Indian tribes.