On Those Tax Provisions

By October 3, 2008Economy, Taxation

Jim Angle at Fox News explains the tax provisions included in the financial markets bill are, in fact, non-controversial and provisions already passed in the Senate by a vote of 93-2. And the AMT fix. 

And that wooden arrow provision that’s drawn such critical attention?

ANGLE: The bill also extends things such as deductions for tuition expenses, allowing teachers to continue to deduct out-of-pocket expenses for their classrooms, and allowing taxpayers in states that have high sales taxes instead of state income taxes to deduct the sales tax instead. Some reports ridiculed a provision that exempts from taxes wooden arrows for children.

MCCRERY: The fact is that boy scouts and camps all over the United States use these wooden arrows for practice, for archery practice and so forth, and the instruction of archery.

ANGLE: The tax was intended for professional bows and arrows, not those used to teach boy scouts but an earlier effort to change the law inadvertently saddled 30-cent arrows for children with a 39-cent tax, thereby doubling the price, a mistake the extender package fixes.

MCCRERY: While some may look at this and say oh, that’s terrible, when in fact, it’s good tax policy.

Shorter version: It’s the Tax Extenders Bill.

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