Kyle Pomerleau on Apple's Tax Hearing in the Senate
For more on corporate taxes, see Kyle's recent study "U.S. Multinationals Paid More Than $100 Billion in Foreign Income Taxes."
Reading through the tax provisions of the misnamed "American Jobs and Closing Tax Loopholes Act of 2010" is like reading a pork barrel laden appropriations bill. The vast majority of the so-called tax cuts are essentially earmarked spending through the tax code.
Below is a short list of some of the more glaring giveaways in the bill. Some of the bigger winners are local governments who will benefit from taxpayer-subsidized bond authority and the alternative energy industry who are getting a windfall of targeted tax credits. The more curious "business" tax breaks are the tax benefit for "certain motorsports entertainment complexes" and the special expensing rules for film and television productions.
|
Item |
2010 Cost in Millions |
10-Year Cost in Millions |
|
Extend Build America Bonds |
$0 |
$4,042 |
|
Alternative motor vehicle credit for new qualified hybrid motor vehicles other than passenger automobiles and light trucks |
$3 |
$8 |
|
Excise tax credits and outlay payments for biodiesel and renewable diesel |
$634 |
$868 |
|
Extend and modify credit for electricity produced at open-loop biomass facilities placed in service before 10/22/04 |
$43 |
$84 |
|
Extend and modify credit for steel industry fuel |
$13 |
$44 |
|
Credit for construction of energy efficient new homes |
$23 |
$66 |
|
Incentives for alternative fuel and alternative fuel mixtures |
$73 |
$96 |
|
Direct payment of energy-efficient appliance tax credit |
$68 |
$69 |
|
Deduction for certain expenses of elementary and secondary school teachers |
$43 |
$215 |
|
Election for direct payment of low-income housing credit |
$3,072 |
$11 |
|
7-year recovery period for certain motorsports entertainment complexes |
$11 |
$38 |
|
Enhanced charitable deduction for contributions of food inventory |
$43 |
$78 |
|
Enhanced charitable deduction for contributions of book inventory |
$17 |
$31 |
|
Enhanced charitable deduction for qualified computer contributions |
$107 |
$195 |
|
Special expensing rules for qualified film and television productions |
$54 |
$46 |
|
Tax incentives for investment in the District of Columbia |
$55 |
$85 |
|
Payment to American Samoa in lieu of extension of economic development credit |
$18 |
$18 |
Bill Summary: http://waysandmeans.house.gov/media/pdf/111/America_Jobs_Summary.pdf
JCT estimate: http://waysandmeans.house.gov/media/pdf/111/HR4213_JCT.pdf
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For more on corporate taxes, see Kyle's recent study "U.S. Multinationals Paid More Than $100 Billion in Foreign Income Taxes."
For more on corporate taxes, see the recent study by economist Kyle Pomerleau "U.S. Multinationals Paid More Than $100 Billion in Foreign Income Taxes."
