Claremore Daily Progress

Top Stories

January 4, 2013

From NASCAR to rum, the 10 weirdest parts of the 'fiscal cliff' bill

By now, we've heard all about the big stuff in the fiscal cliff bill that finally passed on Tuesday. The Bush tax cuts will become permanent for all individual income below $400,000 (and family income below $450,000). The sequester spending cuts will be delayed two months. And so on.

But Congress also managed to include all sorts of corporate tax breaks and other arcane provisions into the final bill, covering everything from electric scooters to NASCAR racetracks to taking the subway to work. Most of these tax breaks were already longstanding provisions - Congress has been working to renew them all year. They're just being extended again for another year (or sometimes two), at a total cost of roughly $77 billion.

So let's take a look at 10 of the more curious tax provisions in the fiscal cliff bill-it offers some insight into how messy the tax code is, and will continue to be for another year.

1. A $9 billion "sop for Wall Street banks and major multinationals"

Check out Section 322 of the bill. "Extension of the Active Financing Exception to Subpart F." Sounds dull, right? Not quite.

As Dan Eggen has reported, this provision, first created in 1997, allows manufacturers and banks to defer taxes when they engage in a special type of financial transactions known as "active financing." The break now costs $9 billion per year, and critics claim it encourages firms to create jobs overseas. But it's a top lobbying priority for companies like GE and JP Morgan, who say that it helps them compete abroad, and it will get extended another year.

Now, there are a ton of other costly business tax breaks in the deal, too, from tax credits for R&D to bonus depreciation (which studies have found are ineffective at stimulating the economy). But the $9 billion active financing credit was arguably the hardest-fought.

Text Only
Top Stories
  • Students paint mural Catoosa High School artists paint mural to instill respect, inspiration

    Catoosa High School students, Devin Jackson and Spencer Plumlee, recently put the finishing touches on a mural that took more than a year to complete. 

    April 18, 2014 1 Photo

  • Local attorneys fight to eliminate judgment

    Claremore attorneys — Thomas H. Williams and Jack E. Gordon Jr. —   filed a petition Tuesday to vacate the $27.9 million judgment awarded to Material Service Corp. 

    April 18, 2014

  • Rogers County Water Dist. 16 receives grant

    Rogers County Rural Water District No. 16 received a $24,999 grant Tuesday to help finance expansion of the district’s water supply infrastructure.  

    April 18, 2014

  • Grand Jury recesses until June 24

    The multicounty grand jury charged with investigating accusations of misconduct by Rogers County officials recessed Thursday until June 24-26, saying it needed to hear from more witnesses before returning a finding in the matter.

    April 17, 2014

  • Harps Food opens new store in Inola

    On April 23, Harps Food Stores will reach a new milestone in their company’s history with the opening of its 75th store. 

    April 17, 2014

  • helping children Tri-County CASA seeks additional volunteers as child abuse cases increase

    From 2010-2013, Oklahoma has seen an increase in children entering foster care. According to Oklahoma Department of Human Services reports, approximately 11,000 children are in state’s custody because of child abuse or neglect — 4,000 in the Tulsa area alone and more than 100 in Rogers County.

    April 17, 2014 1 Photo

  • Judge refuses to dismiss Grubowski in DA suit

    A judge has denied businessman Myron Grubowski's motion to remove him from the defamation lawsuit filed by District Attorney Janice Steidley against sponsors of last fall's unsuccessful citizens petition for a local grand jury investigation of her  office.

    April 17, 2014

  • Controversial schools chief attracts crowd of opponents

    The field of candidates running for state school superintendent is unusually large — a sign of broad interest in what observers say is sure to be a referendum on the incumbent, Dr. Janet Barresi.

    April 17, 2014

  • Jennifer Hodges Claremont Elementary teacher named the winner of $2,500 classroom grant

    Jennifer Hodges, a fifth grade teacher at Claremont Elementary, has been named winner of a $2,500 grant through the Farmers Insurance Thank A Million Teachers program. The national initiative invites citizens to offer thanks to teachers, past and present, who have made a difference in their lives.

    April 16, 2014 1 Photo

  • Commissioners hire outside counsel

    The Rogers County Commissioners hired outside legal counsel Monday to contest the $28 million civil judgment paid to Material Service Corp.

    April 16, 2014