If we're all in this together, tax breaks for those least in need have to be more than just on the table. They need to be part of the plan. Unfortunately we have a president who wobbles and concedes before most fights even begin. The Democrats have to stand firm on handouts for the industries that are sitting on $800 billion of cash. A blank check to those businesses is irresponsible. Bloomberg:
Barack Obama’s proposal to end a business tax break worth $72 billion is among the tensions the president may confront as he meets today with Senate Minority Leader Mitch McConnell in an effort to revive bipartisan talks over reducing the debt.
Ending the so-called last-in-first-out, or LIFO, provision, a method of accounting for inventory costs, was among options offered by White House officials for raising $400 billion in revenue over 10 years during seven weeks of negotiations led by Vice President Joe Biden, three persons familiar with the issue said on the condition of anonymity because they weren’t authorized to comment publicly.
“We think this is part of simplifying the tax code” and leveling the playing field for companies, White House press secretary Jay Carney said today. He used the example of an oil company that bought oil when prices lower and sells it when the price is higher, declaring its profit based on the higher price. “We just don’t think that’s right,” he said.
