DAILY FISCAL POLICY REPORT -- May 13, 2008
by Dana Chasin, 5/13/2008
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".
