NAM: House passes tax extension bill
The McClatchy-Tribune News Service (12/3, Hall, Douglas) reports the House of Representatives voted to temporarily extend $45 billion in tax deduction extensions in a 378-46 vote, setting “the stage for a similar move in the Senate” next week. The bill will last for the rest of this tax year, despite a push by some members of Congress for a two-year extension. Some people saw the extension “as a missed opportunity,” saying that a long-term extension of the taxes would be more beneficial. NAM Chief Economist Chad Moutray advocated for more certainty over the state of tax extensions, noting that “It helps encourage more investment this year, and it also helps level the playing field for the larger foreign tax” issue. “Hopefully as we move into next year, we’ll have a broader conversation,” said Moutray.
USA Today (12/4, Davis) reports the “one-year, retroactive fix will allow millions of businesses and individuals to claim the breaks on their 2014 tax returns;” however, the article adds that the “fate of the package next year” is “uncertain” after the President “cut short bipartisan negotiations for a long-term deal with a veto threat.”
Bloomberg News (12/4, Rubin) reports the House passed a bill that temporarily extends tax credits that had expired through December 31 this year, including credits for wind energy, home sales on underwater mortgages, and certain business and individual taxes. Rep. Steny Hoyer (D-MD) stated the bill was “a short-term fix” that wasn’t “what [he] hoped for.” The temporary extension was “the best available option after a broader deal collapsed,” in part because President Obama and other Democrats threatened to block a larger deal if tax breaks for middle- and lower-income families were excluded.
NAM Letter Encourages Representatives To Support Tax Extender Bill. A Letter (12/4) to members of the House of Representatives from the NAM urges lawmakers to support the bill known as the Tax Increase Prevention Act of 2014. The letter advocates for keeping the current tax system in place to avoid the injection of “more uncertainty into business planning” that would make US companies less competitive. The letter highlights how provisions such as the research and development credit and other incentives will spur investment, while the “look-through” rule and the deferral for active financing income will make US companies more competitive globally. The letter notes that the bill has been named as a Key Vote by the NAM’s Key Vote Advisory Committee.