DAILY FISCAL POLICY REPORT -- May 13, 2008

Taxes -- Rangel Eyeing Extender Offsets: House Ways and Means chair Rep. Charles B. Rangel (D-NY) is sifting through potential revenue-raisers to pay for a set of tax credit and deduction extensions expected to hit the House floor by or immediately after Memorial Day. A prime contender: offshore nonqualified deferred compensation, which would defray $23 billion. Less likely: "The carried interest is dead on arrival. Schumer killed the whole thing. I expect that he would do the same in the Senate — in a quiet way, behind the scenes — on Rangel's 'payfor,'" a lobbyist said. War Supplemental -- House Looking for GI Bill Offsets: To get the House Blue Dog coalition to back a war supplemental spending bill, Democratic leadership is mulling its options to offset a $52 billion GI Bill expansion. CongressDaily reports ($) that one plan would involve closing the carried interest loophole. Budget -- Resolution at Last; Deal Sealed: Senate Budget Committee chair Kent Conrad (D-ND) announced yesterday that budget resolution negotiators had reached a deal last Friday, but its terms were still under seal under conferees can be named and meet. The domestic discretionary topline is close to $1.012 trillion. Tax Expenditures -- JCT Releases "Reconsideration": Yesterday, the Joint Committee on Taxation released an examination of federal tax expenditures -- $1 trillion in annual spending that goes relatively unnoticed, because it is comprised of tax credits, deductions, exemptions, exclusions, deferrals, and rate reductions not considered in the appropriations process. JCT's "Reconsideration".
back to Blog