The problem with bipartisanship as it is currently understood is that, for the most part, cooperation in Congress serves the elites that already are living large thanks to federal tax policies that redistribute wealth upward.
Hailed by politicians and pundits as an example of Congress coming together to get something done, the measure—which still must be considered by a somewhat skeptical Senate—is better understood as a glaring example of what it wrong with Washington.
“There are a lot of things that Congress didn’t get done in the last two years,” explains Congressman Mark Pocan, a Wisconsin Democrat who cast one of the lonely “no” voters in the House. “The fact that this was a priority of this leadership at this point shows just how broken this Congress is.”
The measure seeks to extend many of the most absurd tax breaks enjoyed by multinational corporations in a way that Congressman Keith Ellison says “gives away too much to big business, while doing little to help working families make ends meet.”
“The bill is full of deficit-financed corporate giveaways that won’t stimulate the economy or help working Americans,” notes Ellison, the co-chair of the Congressional Progressive Caucus. “The bill retroactively restores the bonus depreciation tax break, which doesn’t increase economic growth because it helps companies pay for equipment they’ve already purchased. It also costs $1.49 billion. The active financing exemption allows companies to keep a huge amount of profits overseas and costs $5 billion. The bill also provides tax breaks for motorsports tracks such as NASCAR ($33 million) and racehorses ($45 million).”
The “bonus depreciation” merits special attention.
Georgetown University law professor David A. Super refers to that particular corporate tax break as a “license to steal”—because it “allows a business to pretend that its buildings and equipment wear out far faster than they actually do.”