Treasury Secretary Slams Tax Break Extension
Obama administration Treasury Secretary Jacob Lew criticized the extension of expired or soon-to-expire tax breaks as "fiscally irresponsible" as Congress attempts to hammer out an agreement before the new term. Included among the 56 provisions under debate is an incentive for real estate development in ostensibly overlooked, low-income areas. The package that legislatures are discussing could raise the deficit by $400B over the next ten years, Bloomberg reports. The 14-year-old new markets tax credit, which offers tax breaks worth 39% of equity investments in targeted developments, is a particularly controversial measure among provisions that also include the earned income and child tax credits.
In a statement today Lew said that, "An extender package that makes permanent expiring business provisions without addressing tax credits for working families is the wrong approach, at the expense of middle-class families. Any deal on tax extenders must ensure that the economic benefits are broadly shared.” The Senate and House have roughly two weeks to reach a compromise on the issue.
