1. Advanced Energy Investment Credit (Sec. 1302, Page 231). This relates to properties designed to reduce greenhouse gas emissions, such as those that produce energy from the sun, wind, geothermal deposits, fuel cells, microturbines, or an energy storage system for use with electric or hybrid-electric vehicles.
2. Tax Credits for Alternative Refueling Property (Sec. 1123, Page 211). This is a temporary increase for alternative fuel vehicle refueling businesses.
3. Work Opportunity Tax Credits for Hiring Unemployed Veterans and Disconnected Youth (Sec. 1221, Page 223). This is a tax credit to provide incentive to businesses to hire unemployed veterans and "disconnected youth." That latter term is defined, in part, as young adults "not readily employable by reason of lacking a sufficient number of basic skills."
4. Delayed Recognition of Certain Cancellation of Debt Income (Sec. 1231, Page 224).
5. Election to Accelerate Recognition of Historic AMT/R&D Credits (Sec. 1201, Page 220).
Grand total: 25.
In all, tax cuts amounted to about a third of the cost of the $862 billion stimulus over the next decade. The biggest ticket tax cut was the first one on the list, the Making Work Pay tax cut that is expected to cost the government about $116 billion over two years. Interestingly, the White House did not include the Alternative Minimum Tax patch, which has been extended annually for years. But that accounted for another $70 billion for one year. Together, those two items account for the lion's share of the tax cuts in the stimulus.
Which leads us to the question of whether all of these 25 qualify as tax cuts?
"In a way this reminds me of Clinton's 'It depends on what your meaning of is is' comments," said Rosanne Altshuler, director of the nonpartisan Tax Policy Center. "It depends on what you mean by tax cuts."
"These are all provisions that cut your taxes," she said, "but most of them are temporary," designed to stimulate a floundering economy.
Each of the tax provisions in the stimulus could have been broken into separate bills, said Bob Williams, also of the Tax Policy Center, and on their own could have rightly been billed as separate tax cuts.
"They packed an awful lot into that bill," Williams said. "I think it's fair to say that various tax provisions in the stimulus could be considered tax cuts. I don't think that's being deceptive."
Re: Remember: there were no tax cuts.
1. Advanced Energy Investment Credit (Sec. 1302, Page 231). This relates to properties designed to reduce greenhouse gas emissions, such as those that produce
energy from the sun, wind, geothermal deposits, fuel cells, microturbines, or an energy storage system for use with electric or hybrid-electric vehicles.
2. Tax Credits for Alternative Refueling Property (Sec. 1123, Page 211). This is a temporary increase for alternative fuel vehicle refueling businesses.
3. Work Opportunity Tax Credits for Hiring Unemployed Veterans and Disconnected Youth (Sec. 1221, Page 223). This is a tax credit to provide incentive to businesses to hire unemployed veterans and "disconnected youth." That latter term is defined, in part, as young adults "not readily employable by reason of lacking a sufficient number of basic skills."
4. Delayed Recognition of Certain Cancellation of Debt Income (Sec. 1231, Page 224).
5. Election to Accelerate Recognition of Historic AMT/R&D Credits (Sec. 1201, Page 220).
Grand total: 25.
In all, tax cuts amounted to about a third of the cost of the $862 billion stimulus over the next decade. The biggest ticket tax cut was the first one on the list, the Making Work Pay tax cut that is expected to cost the government about $116 billion over two years. Interestingly, the White House did not include the Alternative Minimum Tax patch, which has been extended annually for years. But that accounted for another $70 billion for one year. Together, those two items account for the lion's share of the tax cuts in the stimulus.
Which leads us to the question of whether all of these 25 qualify as tax cuts?
"In a way this reminds me of Clinton's 'It depends on what your meaning of is is' comments," said Rosanne Altshuler, director of the nonpartisan Tax Policy Center. "It depends on what you mean by tax cuts."
"These are all provisions that cut your taxes," she said, "but most of them are temporary," designed to stimulate a floundering economy.
Each of the tax provisions in the stimulus could have been broken into separate bills, said Bob Williams, also of the Tax Policy Center, and on their own could have rightly been billed as separate tax cuts.
"They packed an awful lot into that bill," Williams said. "I think it's fair to say that various tax provisions in the stimulus could be considered tax cuts. I don't think that's being deceptive."
We agree.