House Republicans passed the 'fiscal cliff' bill last night, which will raise taxes on those making more than $400,000 a year to 39.6%, extend unemployment insurance for one year, raise the estate tax from 35% to 40% and eliminate the payroll tax break for the middle class.
However, the 150-page bill also includes some corporate welfare for various industries, which will cost the federal government more than $100 billion in revenue.
Hollywood, NASCAR, railroads and more industries got unnecessary special treatment in this bill, which had to be passed to avert financial disaster for the U.S.
ABC News reports (video below) that the bill includes:
$430 million for Hollywood through “special expensing rules” to encourage TV and film production in the United States. Producers can expense up to $15 million of costs for their projects.
$331 million for railroads by allowing short-line and regional operators to claim a tax credit up to 50 percent of the cost to maintain tracks that they own or lease.
$222 million for Puerto Rico and the Virgin Islands through returned excise taxes collected by the federal government on rum produced in the islands and imported to the mainland.
$70 million for NASCAR by extending a “7-year cost recovery period for certain motorsports racing track facilities.”
$59 million for algae growers through tax credits to encourage production of “cellulosic biofuel” at up to $1.01 per gallon.
$4 million for electric motorcycle makers by expanding an existing green-energy tax credit for buyers of plug-in vehicles to include electric motorbikes.