Thursday’s
meeting of the Senate Finance Committee was supposed to be this nation’s first
step toward comprehensive reform of the Internal Revenue Code, attacking a list
of 75 different special interest tax incentives that don’t really have anything
at all to do with social policy – the usual justification for special interest
benefits conferred by Congress through tax code loopholes. Instead, it turned
out to be a clear demonstration of just how wimpy Senators can be when faced with
taking away tax benefits for their own constituents.
Here
are some of the specialized tax advantages that were on the agenda for
termination, but ended up being retained in future tax years: 1) accelerated
depreciation for capital improvements at NASCAR racetracks (wonder what the
social policy behind that one could be?); 2) millions of dollars in rum tax
rebates for Puerto Rico and the U. S. Virgin Islands (wonder which Senate
Finance committee members drink daiquiris?); 3) economic development tax
credits for StarKist’s tuna cannery in American Samoa; 4) tax credits of $2,500
for buyers of electric motorcycles and other low speed electric vehicles (the
Senators did remove golf carts from the list of qualifying electric vehicles,
though). Out of 75 special interest tax benefits on the termination agenda, the
Senators could only agree that 20 were fit for elimination. Characterizing
these moves as “more than baby steps,” Finance Chairman Max Baucus crowed “I’m
proud of what we’ve done as a committee.”
Other
committee members were somewhat more truthful in their remarks defending the
small number of special interest perks removed from the tax code in the
committee report, which won’t even get a vote in either house until mid
September, when the six week summer recess concludes. Michigan Senator Debbie
Stabenow candidly pleaded for the NASCAR accelerated depreciation as a job
saver in her state: “Big tax reform is where we need to look at all this stuff,”
she said. Meaning, let’s kick this can down the road until after the elections.
Oklahoma Senator Tom Coburn was more candid. “Nobody wants to make the hard
choices around here,” he intoned.
