The fiscal cliff tax compromise, which is being touted as making the wealthy pay their fair share, contains billions in corporate tax breaks.
These business tax loopholes, inserted into the bill as part of a package of tax extenders approved by the Senate Finance Committee, will cost more than $63 billion next year, according to an analysis by Congress' Joint Committee on Taxation, the Los Angeles Times reported.
The tax breaks include ones for NASCAR racetracks, rum distillers, companies operating in American Samoa (including a StarKist factory), wind-energy companies, and television and movie producers who film in the United States, especially in economically depressed areas.
Supporters say such measures boost the economy by helping businesses and creating and preserving jobs. Critics say the subsidies show the need for reform of the tax system and are sure to be part of the bigger upcoming debate in Washington on deficit reduction and spending cuts.
An editorial in today's Wall Street Journal
about the deal was headlined: "Crony Capitalist Blowout."
"Republicans who are looking for a new populist message have one waiting here," the editorial said. "They could start by repudiating the corporate welfare in this New Year disgrace."
Via the Wall Street Journal and the Los Angeles Times