Which is Best Jobs Strategy: Higher Taxes or Extending Relief?

By November 19, 2009Health Care, Taxation

From The Hill, a review of top lobbying issues trade associations and others are working on, “Talk of new jobs legislation triggers interest-group and lobbying push“:

[The] National Association of Manufacturers (NAM) is casting a year-end push to extend several tax breaks as a way to create jobs and avoid layoffs.

Atop NAM’s priorities are extensions for a tax break that expires at the end of the year that aims to bolster research and development. According to the association, roughly 18,000 companies use the credit and 70 percent of the tax credit goes toward salaries. NAM is also seeking an extension of two international tax provisions that expire at the end of the year.

“The international provisions help us compete overseas and strengthen the economy,” said Dorothy Coleman, vice president for tax policy at NAM.

“We have six weeks left. It is critically important in our minds to get these done,” Coleman said.

As for the Senate health care bill released Wednesday by Senate Majority Leader Harry Reid, The Wall Street Journal‘s Health Blog notes the legislation’s tax increases and expected revenue:

  • Tax on high-end health insurance plans: $149.1 billion
  • Capping flexible spending accounts at $2,500: $14.6 billion
  • Fees for drug makers: $22.2 billion
  • Fees for medical device makers: $19.3 billion
  • Fees for health insurance companies: $60.4 billion
  • Higher floor for deducting medical expenses: $15.2 billion
  • Higher payroll tax for top earners: $53.8 billion
  • Tax on cosmetic surgery: $5.8 billion

The list by no means a complete accounting of the bill’s tax increases. For that, see the Joint Economic Committee’s spreadsheet.

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