Some tax credits ended as the deadlines to renew has expired, but through a congressional agreement at the last hour, some have been restored. Distillers, brewers, churches with parking lots, racehorse owners, and some of the wind energy producers will have their tax credits still in place as the deal was finalized. The special interest tax breaks were attached to the provision in must-pass legislation. Tax breaks mostly come from Republicans, but they won some of the Democrats over to pass the regulations. It wasn’t an easy and quick process as it took months for Congress to decide on the extensions.
As the year is ending on Capitol Hill, lawmakers scrambled in trying to figure out the budgets as to what they will allow to pass and those they would cut off from their agenda to help businesses. The most significant changes came with the elimination of the taxes used to fund the Affordable Care Act, which taxed health insurers, medical devices, and health plans, which were generous for the public.
The Cadillac Tax is considered a way for the law to pay for itself and is considered to be in the health insurance plans category. Lawmakers in the House overwhelmingly voted to repeal the tax. The medical device tax and the health insurance tax applies to the health insurers and taxes medical products like pacemakers, X-ray machines, artificial knee, and hip joints, and artificial hearts. This tax was also eliminated.
According to The New York Times, “The agreement, which passed the House 297 to 120 on Tuesday, also extends tax benefits for railroad track maintenance, racehorse, and racetrack ownership, hiring and investment on Native American reservations and some victims of natural disasters. A one-year extension was also given to winemakers, beer brewers, and liquor distillers, allowing them to avoid tax increases of as much as 400 percent. It also extends a handful of credits for renewable energy, like wind production, but does not include an extended credit for the buyers of electric cars.”
Republicans and Democrats both fell short on expanding the efforts made to help low-income families and fixing any areas written in error, which was signed by President Trump in 2017 when the big tax cuts first took place. The 2017 tax cut brought the rates down to 21 percent and was only meant to be a temporary fix. It was implemented so the ten-year federal budget deficit would not have been overdrawn.
Once again, we find another area where Democrats have failed America. None of these politicians should have to scramble at a last-minute notice to get their jobs done. They spent all of their time trying to bring up evidence against President Trump, which was never there, instead of working on fixing these issues. Now, the tax credits which needed to be renewed fell through the cracks, and those which did not need to be renewed were voted on with the little time they had left before they expired.
Maya MacGuineas, the president of the Committee for a Responsible Federal Budget, said, “This is a gluttonous tax binge that has the desperate feel of politicians scrambling to heap political favors on powerful interest groups, and there isn’t a single credible justification to defend it.”
What has passed will head on to the Senate, but it pushes them to make quick decisions before the government funding expires. America cannot keep working like this. It is time the Democrats stop playing around and carrying on with their loss from the 2016 elections and work together to keep America running efficiently. That is what President Trump is trying to do, but the Democrats play around until the last minute. Republican Representative Kevin Brady from Texas had this to say, “Regrettably, business, as usual, prevailed in our efforts to reform these supposedly temporary, annual tax policy changes. This annual temporary tax circus needs to end.”
More tax breaks were expected to expire this weekend. Republicans wanted to let those expire and have the tax breaks go to restaurant owners. Democrats automatically rejected it. Republican Senator Charles E. Grassley from Iowa stated, “The agreement may not be the package I’d have pushed for on my own, but it’s a reasonable way forward that provides certainty where before there was only anxiety for many Americans.”
If these practices continue with the Democrats owning the House of Representatives, there will be “anxiety for many Americans.” It is past time these idiots put the American people first.