Conservatives' Misgivings Could Complicate Negotiations

The House will get to work on the tax reconciliation bill when they return to D.C. the week of December 5. Vast differences between the House and Senate versions of the tax bill already threaten to impede conference negotiators, and in what promises to further complicate the situation, House GOP members appear to be split over providing excessive tax breaks to businesses in the Gulf Coast. In their tax bill, the Senate approved $7 billion worth of tax breaks for businesses that invest in the Gulf Coast region. These breaks will go to a number of businesses whose ventures include casinos, massage parlors, liquor stores and golf courses — industries that typically have been excluded from preferential federal tax treatment. This has some conservative members in the House angry, and with the backing of anti-gambling religious conservatives, Rep. Frank Wolf (R-VA) is leading the fight to deny breaks to businesses that he views as less deserving of federal assistance. He is ciculating a "Dear Colleague" letter that will ultimately be delivered to Speaker Dennis Hastert (R-IL).
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