Senate panel revives dozens of tax breaks

The Senate’s tax-writing panel is moving to revive dozens of tax breaks for businesses including biodiesel and wind energy producers, even as the GOP-controlled House trumpets symbolic legislation to erase them and create a new tax code with lower rates and fewer special-interest tax breaks. The $200 billion-plus package debated by the Senate Finance Committee today is anchored by a two-year provision to protect middle- and upper-income taxpayers from being hit by the alternative minimum tax, shielding them from higher levies originally meant to prevent the rich from escaping taxes altogether. The cost of the package grew by more than $50 billion since its initial release on Wednesday, including a tax credit for wind production criticized by presumptive GOP nominee Mitt Romney. That provision was initially targeted for elimination. Supporters of a tax break for builders of NASCAR tracks and other motorsports facilities also managed to revive them after that break had faced the chopping block. Oregon Democratic Sen. Ron Wyden, a longtime sponsor of tax reform, won a committee vote to revive a tax break for plug-in motorcycles and golf carts. Panel members claimed the exercise was actually a step forward for tax reform because they had summoned the courage to allow almost 20 tax breaks to expire, including a much-criticized tax credit for ethanol producers. Read the full story here.