Spokane7
60°
December 10, 2009 in Nation/World
House votes to extend tax credits
WASHINGTON – The House voted Wednesday to extend $31 billion in popular tax breaks, including an income tax deduction for sales and property taxes, to be financed with a tax increase on investment fund managers and a crackdown on international tax cheats.
The 45 tax deductions and credits for businesses and individuals are scheduled to expire at year’s end. The House voted 241-181 to extend them for a year. Rep. Walt Minnick, D-Idaho, voted for the measure; Rep. Cathy McMorris Rodgers, R-Wash., voted against it.
The bill now goes to the Senate, which has rejected the tax increase on investment managers in the past.
The tax breaks include a sales tax deduction that mainly helps people in the nine states – including Washington – without local income taxes, a property tax deduction for people who don’t itemize and lucrative credits that help businesses finance research and development.
The tax breaks are supported by Democrats and Republicans alike and are routinely extended each year, but there are big disagreements over the tax increases that would pay for them. The dispute, combined with the Senate’s prolonged debate on health care, makes it unclear whether the tax package will be enacted this year.
The House bill would raise $24.6 billion over the next decade from the tax increase on investment fund managers. It would affect hedge fund and private equity managers, as well as the more than 1.2 million real estate investment partnerships, according to the Real Estate Roundtable.
The House bill would raise an additional $7.7 billion from a crackdown on international tax cheats, an issue the Internal Revenue Service and the Obama administration have embraced.
© Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Obama honors Medal of Freedom recipients as heroes 
Fuschia on December 10 at 5:35 a.m.
How does one raise money to pay for all the spending, if we dont tax people to pay for it?
Will someone please plug the holes in the leaking bucket?
liarsinnews on December 10 at 7:24 a.m.
The rich get richer, the poor get poorer, at taxpayer expense. Where the hell is the money coming from?
Ninch on December 10 at 8:50 a.m.
Obama and the Dems policy is that the rich get poorer, and the poor remain poor (and increase their numbers) by taxing the “evil” rich and also being totally ineffective in creating jobs to help the unemployed. We need 150K/month of new jobs just to offset the number of young people entering the workforce.
Where does the money come from? They are still printing it. Look for paying high interest on the national debt because inflation will eventually raise its ugly head and taxpayers will be victimized by the feds… the perfect storm is coming.