Back from the holiday extravaganaza. I have a lot of ground to make up. Ought to start with the Fiscal Cliff deal, which the House voted 257-167 on Tuesday to pass the Senate-sponsored “Job Protection and Recession Prevention Act of 2012.”
The deal, so the story goes, steers the nation away from the “doomsday” fiscal cliff scenario by enacting a blend of year-end spending cuts and tax hikes. There’s a lot of losers. But there’s also a hell of a lot of winners. (If you want The Blaze’s full list of winners and losers, check out this article. It’s pretty comprehensive.)
The bill gives the wind-energy industry a nudge with a one-year estension of tax credits that will cost taxpayers a whopping $12.1 billion.
Naturally, Hollywood got it’s share:
The original tax incentive applied to productions costing less than $15 million to make ($20 million in low-income areas). The 2008 extension applies to all films, up to a deduction of $15 million (or $20 million in low-income areas). The incentive is especially generous to television series; it applies to each TV episode.
Yeah, it’s about $150 million a year for us lowly, non-Hollywood types.
And don’t think Goldman Sachs didn’t snatch a piece of the congressional pie. “Section 328 of the bill extends tax-exempt financing for the ‘Liberty Zone,’ the area around the former World Trade Center, for another year,” the Washington Post reports. “[T]his tax provision was supposed to help fund reconstruction after 9/11. Yet a recent Bloomberg investigation found the bonds have mostly helped finance new luxury apartments, not to mention the construction of Goldman Sachs’ new headquarters.”
As far as the losers go, the obvious one is the conservative/libertarian (aka, Tea Party) base.
But the most important loser, of course, is the American taxpayer. Rich, poor, middle of the road, your taxes are heading north.
The bill did not reinstate the payroll tax holiday, which has been around for the past two years. So regardless of what income tax bracket you are, take home pay will plunge.