Hollywood Tax Credits, Rum Subsidies, Indian Coal and Scooters: The Senate Fiscal Cliff Bill’s 4 Worst Ripoffs

While the American people are being hit with new ObamaCare taxes, and the ObamaDeficit is climbing through the roof and will pass 20 trillion dollars before long, there’s always plenty of sweetheart deals and pork to be found.

1. Hollywood.

Celebrities flocked to Obama and the industry poured millions into his campaign. Payday comes in the form of an extension of the Special Expensing Rules which allow Hollywood productions to deduct 15 to 20 million dollars.  That’s pretty generous considering that companies that manufacture medical devices are being hit with a tax. But who really needs pacemakers anyway when you’ve got Hollywood?

For all the lefty mockery about “wealth creators”, there are some wealth creators that are close to the Democratic Party’s rotten black heart. The same ones who do tedious ads calling on the Democrats to outlaw guns, plastic bags and civil rights. Celebrities.

Glenn Reynolds has argued that instead of cutting taxes on Hollywood, Washington should be raising taxes, and not just by legalizing and taxing cocaine.

The first such proposal would be to restore the 20% excise tax on motion picture theater gross revenues that existed between the end of World War II and its repeal in the mid-1950s…  The movie excise tax was imposed in response to the high deficits after World War Two. Deficits are high again, and there’s already historical precedent.

But instead of raising taxes on Hollywood, the Senate fiscal cliff extends the deductions.

 

2. Puerto Rican Rum

When rum from anywhere but Puerto Rico and the Virgin Islands arrives in the United States, the excise taxes go to Uncle Sam, but 98 percent of the excise taxes for rum from Puerto Rico and the Virgin Islands go right back to those territories, which reinvest the money in rum production.

The United States is using rum excise taxes to subsidize rum production in Puerto Rico and the Virgin Islands, which is not only a WTO violation, it’s half a billion dollars in tax revenues being thrown out the window so that more rum can be made, so that more rum can be taxed, etc…

Maybe there’s an argument for giving up 500 million dollars for rum distillers, but when we’re taxing companies that produce lifesaving technologies, then maybe we should be taxing the rum too?

Oh and it’s wasted money too.

Estimates suggest that, in some cases, the value of the operating subsidies alone exceeds the actual production cost per litre of rum.

 

3. Scooters

Sec 403. Extension of credit for 2- or 3-wheeled plug-in electric vehicles

There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the applicable amount with respect to each such qualified 2- or 3-wheeled plug-in electric vehicle placed in service by the taxpayer during the taxable year

Thanks goodness all those poor people in Hollywood who own three Segways will be able to get a tax credit while wobbling around the sidewalk drunk on Puerto Rican rum

 

4. Tax credits for Indian Coal

Back in 2008, Obama vowed to destroy the coal industry. Thus far he has been doing an excellent job of shutting down coal plants and putting coal miners out of work with over 17,000 jobs lost.

But there’s coal, which is dirty, filthy and polluting, and there’s Indian coal which is the heart and soul of an ancient people and is in a special category as indigenous coal.

(9) Indian coal
(A) In general
The term “Indian coal” means coal which is produced from coal reserves which, on June 14, 2005—
(i) were owned by an Indian tribe, or
(ii) were held in trust by the United States for the benefit of an Indian tribe or its members.

Anyway the gloriously indigenous Indian coal tax credit has been extended for another year. Because that Italian guy who played an Indian standing by a highway doesn’t cry when the coal is held in trust by the United States government. Let the sound of 17,000 unemployed coal miners who don’t happen to be Indians be heard throughout the land.

  • cynthia curran

    On Farm subsidies we will not give you the subsidy unless you stop using illegal immirgants and use the guestworker program which is currently available or put more automation on your farm.

  • rightwingcanadian

    bye bye America hello Uassr united American soviet socialist republics.

  • NotClauswitz

    Do they mean "Indian Coal" is not from north-east India and poor starving rice-eaters on the banks of the Ganges? Shouldn't that be "Original-Indigenous Native American Coal?"

    • figment

      Excellent point! that was my first thought when i saw the word "Indian" which has been banned from being used on sports teams names because it's "offensive" (to some Caucasian somewhere)

  • Kuntekente

    We need the tea party and the strongest resurgence ever. I can't stand anymore of this ridiculousness. Watching the debate and not one democrat had an inkling of the numbers and impact. All was crap talking and class warfare and woe-wees me. Arghhhhhhhhh….Boehner needs to go. NOW!!!!!!!!

    • Arlie

      Constitution Party – Get ready to Roll….watch you tube video of Chuck Baldwin: Restoring the Republic.

      Here was our answer all along. Somehow we were duped into this 2 party, really 1 party system. Let's get out of it and back to our principles. http://www.youtube.com/watch?v=TY3H9le_Ftl

      Thanks for the laugh, Daniel…I can just see those Hollywood types on their 2 wheelers drunk on rum.

      0 loves to throw lavish parties for Hollywood and the Media and they eat it up…they're his BFF.
      The recent Kennedy Center Honors-The Led Zeppelin Tribute (Full) …20 minutes gives much insight to the mentality of this bunch of anti-establishment 60's who are NOW the establishment that are destroying our Capitalist system that made them all rich…they are a really sick twisted bunch of freaks. Hypocrites. The word Hypocrite comes from the Greek word for: Mask…now, doesn't that just fit?
      Watch the video at you tube as the camera pans the audience and look who's there…it is very revealing to see how 0 buys and pays for his adoring useful idiots! http://www.youtube.com/watch?v=Lpwr_Fw4Hmo

  • Renton

    Segways are only allowable under this credit if they can reach 45mph. Frankly that sounds like a fun Segway to me!

    • Arlie

      The person who invented the Segway died on one GOING OVER A CLIFF or something.

      • figment

        did Paul Ryan push him over?

        • Alan

          Nope – it was a prototype of a sport-utility segway he was running around on his estate – it tripped on a rock (or something like that) near the edge of the cliff.

  • dan

    Obama and the liberals claim GOP was for special interest groups .Oh! how Obama slammed them for that.Yet seem Obama love special interest groups .Giving tax breaks to a few yet screwing the others that are not special enough

  • June

    Oh, you mean "Indian" as in Native American, not the Indian being murdered by US subsidised Pakistani terrorists. Wrong subsidies, I guess.

  • Rustymike

    Before all of you blow a gasket, you should read this; http://www.huffingtonpost.com/matt-stoller/eight-

  • Born rich

    But NASCAR and Goldman Sachs subsidies are ok. And tax increases on whoever disagrees with aforementioned subsidies. Typical GOP hypocrisy.

    Oh wait, this is a republican thread, my bad….CONSTITUTION MARXIST DONT TREAD ON ME RABBLE

  • http://www.thempagroup.co.uk/ Lewis Armstrong

    Why give tax credits to the people in Hollywood? Considering the millions those guys make, they should be among the last to be even considered for tax crediting.

  • Vik M

    You’re a dumbass Jewbag.