| Jamie Dupree |
Jobs Bill Tax Shift
While the House voted Thursday to approve a $15 billion jobs bill, the action may not have moved this bill any closer to the President's desk, because of some extra provisions tacked on by Democrats.
The 15 pages of additions weren't unveiled until 9:30 am on Thursday, and were voted on just a few hours later, drawing the expected rebuke from Republicans who didn't like the process.
"If this is a dress rehearsal for how we're going to handle the so-called health care bill, I think the majority better be ready to endure the wrath of the American people," said House GOP Leader John Boehner.
The last minute changes included an interesting provision that would help pay for the bill, by having big businesses with more than $1 billion in assets pay a share of their corporate estimated taxes early over the next nine years.
It doesn't raise any extra revenue, it just basically shifts incoming taxes to an earlier point.
For example, one provision would increase corporate estimated tax payments due in "July, August and September of 2014 to 157.75% of the payment otherwise due for corporations with assets of at least $1 billion."
That brings in an extra $13.6 billion in Fiscal Year 2014.
It also means $13.6 billion less would come in for Fiscal Year 2015, because the money was paid early.
Another provision would increase required payments in 2015 to 121.5% of their normal level.
That brings in an extra $13.26 billion in Fiscal Year 2015.
And it means $13.26 billion less in Fiscal Year 2016.
You get the picture.
So, this jobs bill is "paid for" because extra money would come in earlier than expected originally.
That reminds me of years ago when the Congress delayed a federal pay day a few days to get it into the next fiscal year, and thereby make the financial picture look brighter....
"If this is a dress rehearsal for how we're going to handle the so-called health care bill, I think the majority better be ready to endure the wrath of the American people," said House GOP Leader John Boehner.
The last minute changes included an interesting provision that would help pay for the bill, by having big businesses with more than $1 billion in assets pay a share of their corporate estimated taxes early over the next nine years.
It doesn't raise any extra revenue, it just basically shifts incoming taxes to an earlier point.
For example, one provision would increase corporate estimated tax payments due in "July, August and September of 2014 to 157.75% of the payment otherwise due for corporations with assets of at least $1 billion."
That brings in an extra $13.6 billion in Fiscal Year 2014.
It also means $13.6 billion less would come in for Fiscal Year 2015, because the money was paid early.
Another provision would increase required payments in 2015 to 121.5% of their normal level.
That brings in an extra $13.26 billion in Fiscal Year 2015.
And it means $13.26 billion less in Fiscal Year 2016.
You get the picture.
So, this jobs bill is "paid for" because extra money would come in earlier than expected originally.
That reminds me of years ago when the Congress delayed a federal pay day a few days to get it into the next fiscal year, and thereby make the financial picture look brighter....
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