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It's called the "Active Financing Exception" and the White House endorsed (some have said "insisted on") its inclusion into the fiscal cliff deal.
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1. A $9 billion “sop for Wall Street banks and major multinationals”
Check out Section 322 of the bill. “Extension of the Active Financing Exception to Subpart F.” Sounds dull, right? Not quite.
As Dan Eggen has reported, this provision, first created in 1997, allows manufacturers and banks to defer taxes when they engage in a special type of financial transactions known as “active financing.” The break now costs $9 billion per year, and critics claim it encourages firms to create jobs overseas.
But it’s a top lobbying priority for companies like GE and JP Morgan, who say that it helps them compete abroad, and it will get extended another year.
Now, there are a ton of other costly business tax breaks in the deal, too, from tax credits for R&D to bonus depreciation (which studies have found are ineffective at stimulating the economy). But the $9 billion active financing credit was arguably the hardest-fought.
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Under the provision, financial services firms and manufacturers can defer U.S. taxes on overseas income from a type of financial transaction known as "active financing." Boosters say the two-year exemption helps level the playing field with foreign competitors by ensuring that U.S. corporations aren't taxed twice.
So, let me get this straight. Liberals spend the past 12 years crying over Big Money, Big Profits, Big Corporations, Offshore Accounts, One Percenters, etc. and yet they stay quiet when their President agrees to allow the Big Corporations to continue to off shore profits to avoid paying taxes?
Liberals, it's time to do some explaining lest you appear to be hypocrits of the highest order.
So, let me get this straight. Liberals spend the past 12 years crying over Big Money, Big Profits, Big Corporations, Offshore Accounts, One Percenters, etc. and yet they stay quiet when their President agrees to allow the Big Corporations to continue to off shore profits to avoid paying taxes?
Liberals, it's time to do some explaining lets you appear to be hypocrits of the highest order.
They don't know anything about it. They don't read bills. They just know what "The One" and the MSM tell them. All they know is that their 2% pizza money is gone (FICA holiday expiration).
$70 billion in loopholes for the rich and wealthy and they have no clue.
They don't know anything about it. They don't read bills. They just know what "The One" and the MSM tell them. All they know is that their 2% pizza money is gone (FICA holiday expiration).
$70 billion in loopholes for the rich and wealthy and they have no clue.
I sincerely hope a liberal or two show up to try to explain this away. If we're lucky and any of them have an ounce of intellect, they'll come out and denounce this deal and tell us why they disagree with it.
I guess we liberals were just trying to make all you conservatives HAPPY!
Aren't you so HAPPY that the job creators are getting tax breaks?
You should be; there are a million threads on that topic here on C-D, all of you defending the job creators and the tax loopholes they utilize.
HORRAY!!!
No, that's not what this thread is about. I'm ready for YOU, a liberal, to explain how such a deal runs in congruence with your expectations of this President. Afterall, you folks have fought against Big Corporations and Offshoring for a full 12 years, but yet you were left holding the bag by the guy who was supposed to represent "HOPE AND CHANGE."
What happened? Let me guess.....you still worship him, right?
They don't know anything about it. They don't read bills. They just know what "The One" and the MSM tell them. All they know is that their 2% pizza money is gone (FICA holiday expiration).
$70 billion in loopholes for the rich and wealthy and they have no clue.
So what I'm reading is that you've wanted these loopholes closed all along, and you're absolutely DEVASTATED that they won't be? Am I understanding you correctly?
No, the irony is that he came out today and said the rich aren't paying enough.
Would that be because he just gave them $70 billion in pork ?
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