Reality-BasedTM Political Numbers from Nicholas Beaudrot
Electoral Math
Reality-BasedTM Political Numbers from Nicholas Beaudrot
| Home | Friday Chinchilla Blogging and Shuffle!
Sorry for the delays. Amazon, Christmas, yadda yadda yadda.
From an AP report on earmark reform:
Byrd said any effort to change the way business gets done in Washington cannot begin and end with the appropriations process.
"We also must address earmarks in the tax codes which have resulted in huge loopholes for corporate America while middle-class America is left holding the bag," Byrd said.
First of all, let's point out that a better headline for this article would be something like "Bush Joins Democrats in Call to Tackle Pet Projects", and that the author waits until the sixth paragraph to tell us that "Democrats, who will take control of Congress on January 4, already announced their plan to wipe out billions of dollars in lawmakers' home-state projects in unfinished spending bills." But it certainly could be worse.
Now onto the substance of the thing. While everyone has their share of outrage about pork-projects like the bridge to nowhere, spending earmarks constitute a very small part of the federal budget; perhaps a few billion dollars at most. The real money in earmarks is in the tax code. Take a look at the contents of the Orwellianly-named "American Jobs Creation Act", which consists entirely of jimmying with the tax code. Some of my favorites are highlited for fun:
SEC. 246. SUSPENSION OF OCCUPATIONAL TAXES RELATING TO DISTILLED SPIRITS, WINE, AND BEER.
SEC. 1352. ALTERNATIVE TAX ON QUALIFYING SHIPPING ACTIVITIES.
Subtitle C--Incentives for Small Manufacturers
SEC. 331. NET INCOME FROM PUBLICLY TRADED PARTNERSHIPS TREATED AS QUALIFYING INCOME OF REGULATED INVESTMENT COMPANIES.
SEC. 332. SIMPLIFICATION OF EXCISE TAX IMPOSED ON BOWS AND ARROWS.
SEC. 333. REDUCTION OF EXCISE TAX ON FISHING TACKLE BOXES.
SEC. 334. SONAR DEVICES SUITABLE FOR FINDING FISH.
SEC. 335. CHARITABLE CONTRIBUTION DEDUCTION FOR CERTAIN EXPENSES INCURRED IN SUPPORT OF NATIVE ALASKAN SUBSISTENCE WHALING.
SEC. 336. MODIFICATION OF DEPRECIATION ALLOWANCE FOR AIRCRAFT.
SEC. 337. MODIFICATION OF PLACED IN SERVICE RULE FOR BONUS DEPRECIATION PROPERTY.
SEC. 338. EXPENSING OF CAPITAL COSTS INCURRED IN COMPLYING WITH ENVIRONMENTAL PROTECTION AGENCY SULFUR REGULATIONS.
`SEC. 179B. DEDUCTION FOR CAPITAL COSTS INCURRED IN COMPLYING WITH ENVIRONMENTAL PROTECTION AGENCY SULFUR REGULATIONS.
SEC. 339. CREDIT FOR PRODUCTION OF LOW SULFUR DIESEL FUEL.
SEC. 45H. CREDIT FOR PRODUCTION OF LOW SULFUR DIESEL FUEL.
SEC. 340. EXPANSION OF QUALIFIED SMALL-ISSUE BOND PROGRAM.
SEC. 341. OIL AND GAS FROM MARGINAL WELLS.
`SEC. 45I. CREDIT FOR PRODUCING OIL AND GAS FROM MARGINAL WELLS.
It goes on, and on, and on, and even has an ironically titled "Tax Reform and Simplification for United States Business", after making swiss cheese of the whole thing!
This is just silly. There's no reason why the United States government needs to be handing out candy to individual manufacturingindustries. We could close all of these loopholes (and there are many), lower the overall tax rate, and still raise some revenue to help close the deficit a bit. Instead, we get one-off tax breaks for this, that, and the other. Think of it as "tax pork". Senator Byrd, it seems, is in the mood for some real tax reform and simplification, like the kind we got in 1986.
| | technorati
Last
updated by Nicholas Beaudrot on 08:37 18 December 2006
