The Fiscal Cliff Fiasco that got everyone hot and bothered and did what?

Getting sick and tired of neocons decrying the so-called war on business. There is no war on business. Scratch that. No war on BIG Business…

Even Mitt Romney got a little something…

6) $9B Off-shore financing loophole for banks – Sec. 322 is an “Extension of the Active Financing Exception to Subpart F.” Very few tax loopholes have a trade association, but this one does. This strangely worded provision basically allows American corporations such as banks and manufactures to engage in certain lending practices and not pay taxes on income earned from it. According to this Washington Post piece, supporters of the bill include GE, Caterpillar, and JP Morgan. Steve Elmendorf, super-lobbyist, has been paid $80,000 in 2012 alone to lobby on the “Active Financing Working Group.” 

7) Tax credits for foreign subsidiaries –  Sec. 323 is an extension of the “Look-through treatment of payments between related CFCs under foreign personal holding company income rules.” This gibberish sounding provision cost $1.5 billion from 2010 and 2011, and the US Chamber loves it. It’s a provision that allows US multinationals to not pay taxes on income earned by companies they own abroad.

From here. There is more there too… about 6 more major tax credits/loopholes.

Remember, Congress manufactured this controversy from the ground up. Yeah, sure, the Republicans lost, but to be honest, whereas they lost face, we lost a lot more.

Happy New Year, America.

Mat 12564

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Post By Joel Watts (10,085 Posts)

Joel L. Watts holds a Masters of Arts from United Theological Seminary with a focus in literary and rhetorical criticism of the New Testament. He is currently a Ph.D. student at the University of the Free State, analyzing Paul’s model of atonement in Galatians. He is the author of Mimetic Criticism of the Gospel of Mark: Introduction and Commentary (Wipf and Stock, 2013), a co-editor and contributor to From Fear to Faith: Stories of Hitting Spiritual Walls (Energion, 2013), and Praying in God's Theater, Meditations on the Book of Revelation (Wipf and Stock, 2014).

Website: → Unsettled Christianity

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2 thoughts on The Fiscal Cliff Fiasco that got everyone hot and bothered and did what?

  1. Let’s go back a couple hundred years, when a doctor got paid with some chickens. Congress should receive their salary in the equivalent number of live chickens. It would have a two-fold benefit. It will prop up the chicken market (good for those congressmen that favor farm subsidies), and it will give them something to pluck besides us.

    As a side note to Mitt, I wish the taxes went up on everyone above $250K, since I am a slacker, looking for freebies. Just don’t like congress and Swiss bank accounts. This should boost Joel’s hits on this post. Notice the across the board cuts are postponed for two months. See which has a priority, more tactical fighters or grandma’s medicare.

  2. Well, my first comment to my wife this morning was that this was only more big government and big bonuses for big business all laid on the backs of the little guy. You can’t blame neocons as they are on the same side as the President when it comes to unfunded spending. The CBO reports $4T more debt but history says that will be low unless Washington changes course. BTW, what’s with the ammendment pic? I didn’t think there were any ammendments from the house on the cliff legislation. I haven’t checked your link but I will later as it’s not so easy on the iPod.

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