U.S. Senate advances bill for two-year tax breaks renewal

WASHINGTON Tue May 13, 2014 12:13pm EDT

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WASHINGTON (Reuters) - The Democratic-led U.S. Senate on Tuesday voted to advance a bill to renew $85 billion of individual and business tax breaks for two years, setting up a confrontation with Republicans in the House of Representatives.

By a vote of 96-3, the measure passed its first procedural test, but still had a long way to go before the Senate votes on passage of the bill that contains a package of more than 50 temporary tax breaks known as "extenders," so named because they need to be renewed regularly.

The bill includes tax breaks for auto race tracks, wind energy, multinational corporations, Hollywood, school teachers, Puerto Rican rum producers, college tuition and more.

Most of the extenders technically expired at the end of 2013 and the bill would renew them retroactively through 2015.

Tax lobbyists said on Tuesday the bill has enough bipartisan support to win Senate approval, but that could take weeks as lawmakers try to amend it.

The bill faces resistance in the Republican-controlled House, which is taking a different approach to tax extenders by renewing provisions one by one.

The lobbyists said they expected the extenders to be renewed this year, but only after the November midterm elections when a lame-duck Congress has previously approved similar bills.

Last week, the House approved a bill to make permanent the research and development tax credit, one of the most widely used business extenders that has broad bipartisan support.

But the White House said President Barack Obama would veto the House R&D bill because it would add $156 billion to the federal deficit.

(Reporting by Patrick Temple-West; Editing by Howard Goller)

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Comments (6)
Bakhtin wrote:
Republicans say they like tax breaks… until Democrats suggest extending them. Then, Republicans oppose them for no reason other than being divisive.

May 13, 2014 2:13pm EDT  --  Report as abuse
4825 wrote:
“But the White House said President Barack Obama would veto the House R&D bill because it would add $156 billion to the federal deficit.”

Funny how the white house would veto the Republican tax/jobs bill on R&D but suggest giving other individual and business tax breaks. Nothing but a political ploy cooked up by the liberals to buy votes. These clowns make everything political and could not care less about you Mr. John Doe Public. Vote every liberal democrat out of office every chance you get, I am.

May 13, 2014 4:07pm EDT  --  Report as abuse
4825 wrote:
“Funny how the white house would veto the Republican tax/jobs bill on R&D but suggest giving other individual and business tax breaks.”

Funny how the House Republicans would b*tch and moan and obstruct any time democrats suggest a much-needed program that costs money (because oh noes, the deficit!), but then put forth their own bill that adds $156 Billion to the deficit.

Nothing but hypocritical actions from hypocritical people, hypocritically supported by hypocritical shills.

May 13, 2014 6:00pm EDT  --  Report as abuse
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