McCain should be confronted with
his vote on the bill and his subsequent
comments.
During the next debate, he should be asked point blank about his support for key provisions (I can hear wingnut heads exploding):
10/03/2008
Kerry Provisions Close Tax Loopholes for Hedge Funds,
Freeze Giveaways for Big Oil
WASHINGTON, D.C. – Sen. John Kerry today released the following statement on the House of Representative’s 263-171 passage of legislation to prevent taxpayers from being hit by the financial meltdown on Wall Street:
“This has been a volatile time for our financial system and our economy,” said Sen. Kerry. “This legislation will help restore the strength and stability of America’s financial system and overall economy. This plan is designed to stop the ripple effect of the collapse of Wall Street’s major financial institutions from developing into an economic Tsunami sweeping across the country. I commend both chambers of Congress for coming together to enact legislation to protect our vital national interest in the continued health of our economy.”
Notably, the bill included Sen. Kerry’s provisions to prevent hedge funds from deferring compensation offshore and to freeze giveaways for Big Oil.
The first provision was introduced in response to news accounts of U.S. hedge fund managers deferring billions of dollars of compensation offshore. Earlier this Congress, Senator Kerry and Rep. Emanuel introduced legislation to prevent U.S. taxpayers from deferring compensation in offshore tax havens. The closing of this loophole would raise $25 billion over 10 years. The top fifty hedge fund managers earned a total of $29 billion last year.
Most Americans can defer income through a qualified retirement (e.g. 401k) and individual retirement account (IRA). In 2008, an individual can defer up to $15,500 in income into a 401(k) or similar accounts, and an additional $5,000 in an IRA. By contrast, U.S. based hedge-fund managers who operate offshore investment funds can defer unlimited amounts of their compensation. While the deferrals technically comply with current law, there are clear inequities in the amounts that middle-class American can defer through mainstream tax incentives for retirement and what high-income Americans can defer through offshore corporations. The Alternative Minimum Tax Relief Act of 2008 would require offshore deferred compensation to be included in income on a current basis.
The second provision freezes the domestic manufacturing deduction for oil and gas income at 6 percent, raising $5 billion over ten years. Currently, the 6 percent rate is scheduled to increase to 9 percent in 2010. The second quarter of 2008 saw over $44 billion in profits for oil companies and executives. In the nearly eight years of the Bush Administration, the “Big Five” international oil companies have seen $647.5 billion in profits. Senator Kerry introduced legislation in both the 109th and 110th Congress to scale back the manufacturing deduction for oil and gas companies.
10/03/2008
BOSTON – Senator John Kerry today announced that legislation that includes much-needed tax relief for thousands of Massachusetts families and businesses has been signed by the President.
The bill, which passed the Senate on September 23 and the House today, contains two important legislative achievements: the Tax Extenders and Alternative Minimum Tax Relief Act of 2008 and the Energy Improvement and Extension Act of 2008, which provides incentives for investment in clean energy.
Without Congressional action, the individual alternative minimum tax (AMT) would impact an additional 20 million taxpayers in 2008. The AMT was designed to target wealthy individuals exploiting tax loopholes, but has become a massive tax on families based upon where they live and the number of children that they have. Currently, the AMT impacts 6 percent of taxpayers in Massachusetts. However, without Congressional action, it will affect approximately 27 percent of Massachusetts taxpayers. The Tax Extenders and Alternative Minimum Tax Relief Act of 2008 provides a temporary solution to the AMT by protecting additional taxpayers impacted by the AMT for 2008. The Act also extends family and business tax cuts, including a two year extension of the research and development tax credit.
The Energy Improvements and Extension Act of 2008 provides $17 billion in investment in clean energy incentives and reduces energy tax breaks for big oil companies.
“Massachusetts taxpayers will finally see some much-needed relief. This legislation will prevent hard working Massachusetts families from being impacted by the alternative minimum tax. For years, I have been fighting to exempt middle class families from this hidden tax, and today we are making real progress towards a permanent fiscally responsible solution to eliminate the AMT. This legislation will help the struggling economy by preventing tax increases on families, students, and teachers, and will encourage research and development in Massachusetts which is essential to economic growth. Tax incentives for clean energy will help break our dependence on foreign oil and create much-needed jobs here at home,” said Senator Kerry.
TAX RELIEF FOR MASSACHSUETTS WORKERS AND BUSINESSES
Child Tax Credit: The bill includes a provision to lower the earnings threshold that families must meet to qualify for the child tax credit. According to the Center on Budget Policies and Priorities, the provision helps 13 million children. In Massachusetts, it helps approximately 143,400 children.
New Markets Tax Credit: Provides $1.3 billion in tax credits for equity investment over the next ten years. Massachusetts is one of the tops ten states that benefit from the credit.
Plug-in Electric Drive Vehicles credit: Provides a tax credit of up to $7,500 to consumers for the purchase of a plug-in electric vehicle.
Clean Renewable Energy Bonds: Provides $800 million of new clean renewable energy bonds and will provide additional funding to help our state finance clean energy projects. For example, last year, the Town of Templeton received funding through this program to support a small wind project at Templeton local high school. The project is slated to come online by the end of 2009.
Renewable electricity: This expands the production tax credit for wind, geothermal, biomass, and other renewable electricity generators. It creates a new tax credit for marine, tidal and other hydrokinetic electricity generators, which will benefit innovative new companies. It also provides an eight-year extension of the 30% investment tax credit for solar energy property and qualified fuel cell property. This provision is critical to the renewable energy industry and clean technology sector in Massachusetts. The sector - including consultants, energy efficiency specialists, and university researchers working on clean energy - now employs some 556 firms and 14,400 people in the Bay State, according to a survey prepared for the Massachusetts Technology Collaborative’s Renewable Energy Trust.
Cellulosic Biofuels: This allows companies to write off 50% of the cost of facilities that produce cellulosic ethanol and other cellulosic biofuels.
Biodiesel: This extends the $1.00 per gallon production tax credit for biodiesel and the 10¢/gallon credit for small biodiesel producers through 2009. The bill ensures that the credit is available for stationary uses like home heating oil boilers. This provision complements the Clean Energy Biofuels Act, which Governor Patrick signed into law in late July.
Tuition Deduction: Extends for two years the $4,000 above the line deduction for tuition. 121,000 families in Massachusetts will benefit from this deduction.
Tuition Expense Deduction: Provides a $250 deduction to teachers who buy supplies for their class room. It will help approximately 95,000 teachers in our state.
Research and Development Tax Credit: In Massachusetts, there are 2,478 companies that could benefit from the credit.
AMT: Extends the “patch” for 2008, and prevents approximately 700,000 taxpayers in Massachusetts who have been impacted by the AMT this year.
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