GOP shifting on anti-tax policy
In light of the nation's deficit, some Republicans are calling for an end to individual and corporate tax deductions.
By Lisa Mascaro, Washington Bureau
LA Times
June 16, 2011
Reporting from Washington
One of the most treasured tenets of the Republican Party — "No new taxes" — has been thrown open to debate by a simple question: What, exactly, is a new tax?
The answer, argues Grover Norquist, the godfather of contemporary anti-tax conservatism in Washington, is anything that increases federal revenue. Thus, closing loopholes that have allowed corporate giants and millionaires to slice away at their tax bills would constitute an unacceptable new tax — unless a comparable tax cut is made elsewhere.
But other views are emerging. Worried about the nation's treacherous deficits, some in the GOP say that stanching the $1 trillion lost each year to individual and corporate deductions and breaks is vital to the nation's fiscal health.
The schism has launched an epochal battle for the fiscal soul of the GOP, a party that has steadfastly followed the "no new taxes" credo for a generation.
(More here.)
By Lisa Mascaro, Washington Bureau
LA Times
June 16, 2011
Reporting from Washington
One of the most treasured tenets of the Republican Party — "No new taxes" — has been thrown open to debate by a simple question: What, exactly, is a new tax?
The answer, argues Grover Norquist, the godfather of contemporary anti-tax conservatism in Washington, is anything that increases federal revenue. Thus, closing loopholes that have allowed corporate giants and millionaires to slice away at their tax bills would constitute an unacceptable new tax — unless a comparable tax cut is made elsewhere.
But other views are emerging. Worried about the nation's treacherous deficits, some in the GOP say that stanching the $1 trillion lost each year to individual and corporate deductions and breaks is vital to the nation's fiscal health.
The schism has launched an epochal battle for the fiscal soul of the GOP, a party that has steadfastly followed the "no new taxes" credo for a generation.
(More here.)
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2 Comments:
The vote to repeal the Volumetric Ethanol Excise Tax Credit was not so much a bi-partisan vote as much as a “States” vote … Senators representing Midwestern states (look at Republican Senators who represent Kansas or Indiana) voted to keep it while predominately others voted to eliminate it … this fissure has been there as evidenced by the effort prior to year-end when many of these Senators argued the value of the VEETC in extending the tax cuts.
But it isn’t just the “ the sacred mortgage interest deduction” that needs to be income-phased-out … I just wrote a commentary on the MN Political Roundtable that the number of tax returns reporting income in excess of $200,000 and having ZERO tax liability has doubled according to the latest IRS report.
It ain’t just corporations like DuPont Co. … which is the latest of corporations to report paying zero income taxes even though global profits soared 73 percent to $3 billion, including $950 million in pre-tax U.S. profits. Best yet, DuPont’s tax accountants devised a strategy that allowed DuPont to accrue a $109 million tax benefit for future years.) … but also the well-heeled.
I know that you have cited various evaluations of Tim Pawlenty’s Economic Plan, but did you realize that if Pawlenty’s plan was in place in 2008, the top 400 richest Americans would see their taxes reduced to 4.7%.
Senator Feinstein (D-CA) amendment ETHANOL SUBSIDIES AND TARIFF REPEAL was approved today ...
Feinstein's amendment ends the credit of 45 cents for each gallon of ethanol that fuel blenders mix into gasoline effective 7/1/2011.The credit led to $5.4 billion in foregone revenue last year, according to the Government Accountability Office.
The amendment also ends the 54-cent per gallon import tariff that protects the domestic ethanol industry.
The divide is easily seen ...
NAYs ---27
Blunt (R-MO)
Brown (D-OH)
Casey (D-PA)
Chambliss (R-GA)
Coats (R-IN)
Cochran (R-MS)
Conrad (D-ND)
Durbin (D-IL)
Franken (D-MN)
Grassley (R-IA)
Harkin (D-IA)
Hoeven (R-ND)
Johanns (R-NE)
Johnson (D-SD)
Kirk (R-IL)
Klobuchar (D-MN)
Kohl (D-WI)
Levin (D-MI)
Lugar (R-IN)
McCaskill (D-MO)
Moran (R-KS)
Nelson (D-NE)
Portman (R-OH)
Roberts (R-KS)
Stabenow (D-MI)
Thune (R-SD)
Wicker (R-MS)
Of course, the House would have to agree to this ....
And on a related subject, Jeff Flake (R-AZ) has included a $250k cap on farm subsidies in the Appropriations Committee ... the House is voting on the Ag Appropriations bill presently ... as I recall Senator Klobuchar fought unsuccessfully for a $250k cap in the last Farm bill.
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