Report: House Dems Expand Businesses Eligible for Tax Breaks Under Stimulus « The Washington Independent
Another day. Another expansion of the Democrats’ stimulus proposal — and not in ways we might have anticipated.
The House Ways and Means Committee approved its portion of the $825 billion stimulus package Thursday afternoon, including $275 billion in tax cuts.
While the original bill would allow businesses to recover taxes paid over the last five years based on losses suffered in 2008 and 2009, the Ways and Means panel amended the proposal so that more businesses become eligible for that break, according to the Wall Street Journal:
In a package of amendments to the recovery package unveiled Thursday, House Ways and Means Chairman Charles Rangel (D., N.Y.) proposed a series of changes that would give businesses greater flexibility to claim the credit, ensuring wider participation, congressional aides and corporate lobbyists said. [...]
To pay for the changes, which threatened to drive up the ten-year cost of $16 billion carry-back proposal, the chairman proposed to limit the overall value of the tax benefit. Under his proposal, businesses claiming the tax break would be allowed to carry back 90% of current losses, not 100%, as originally proposed.
The amended bill passed the committee by a vote of 33 to 23, strictly along party lines.