Manufacturing Tax Breaks? Gimme a Break!

Hang on to your hats! The White House has provided details to its manufacturing tax breaks announced with much ado in last night's State of the Union Speech. It would be going to far to call them breath taking. Probably "exciting" would be a reach. Actually "ho hum" is about right.
The U.S. Chamber of Commerce said that the breaks taken with the corporate tax reform outline would actually hurt U.S. businesses but no plan is perfect. The intent of this plan is not to spur manufacturing it's to punish business and drive up energy prices. The six point plan would:

• Remove tax deductions for moving costs associated with relocating abroad. The money saved from this change would be used to provide a 20 percent income tax credit for the expenses of moving operations back to the United States.


• The second change would target an existing domestic production incentive on manufacturers who create jobs in the United States and double it for “advanced manufacturing"


• Another welfare give away. The plan would provide $6 billion to help local communities deal with job loss from relocation.


• Provide $5 billion in green energy tax credits. I'll bet that left you breathless!


• Occasionally an objet d'art is found in the flotsam and jetsam of Democratic legislation and here it is. It would provide 100 percent expensing on plant and equipment. Too good to be true from this administration. There must be a catch.


• Close a loophole that exempts profits on “intangible property,” such as patent royalties, when those properties are transferred overseas.

U.S. Chamber of Commerce chief tax counsel Caroline Harris said that the change to domestic production credits is actually a punishment for oil-and-gas companies, which will make energy prices increase. Same old whore just a new dress.