Today, the House Committee on Ways and Means approved six bills that would permanently extend tax subsidies for corporations, at a 10-year cost of over $300 billion.
During the committee markup, Ranking Member Sander Levin tweeted that making these provisions permanent without paying for them is “both fiscally irresponsible and fundamentally hypocritical”. We agree with Rep. Levin and the other Committee members who voted with him against these bills.
The House should decline to act on any of these until they act on the far more urgent matter of extending vital emergency unemployment benefits that expired at the end of last year. When they do consider tax extenders, they should require that they be fully paid for by closing other corporate tax loopholes. At the same time, they should consider making permanent the tax credits that working families depend on, such as the 2009 improvements to the Earned Income Tax Credit and Child Tax Credit [PDF], which lifted the incomes of almost six million people above the poverty line.
And they should oppose two of the corporate extender bills entirely — H.R. 4429 and H.R. 4464 — because those tax breaks encourage corporations to ship profits and jobs offshore. They should not be extended at all, much less be made permanent.
Here are the tax extender bills approved today:
H.R. 4429, Subpart F active financing exception
H.R. 4464, Controlled foreign corporations (CFC) look-through rules
H.R. 4438, Research credit
H.R. 4453, Recognition period for built-in gains of S corporations
H.R. 4454, Rules regarding basis adjustments to the stock of S corporations making charitable contributions of property
H.R. 4457, Small business expensing under Internal Revenue Code section 179