Lawmakers Mull Compromise Tax Incentive Extension Plan
Democrats on the House Ways and Means Committee are cool towards the proposal since making them permanent means they have to be counted in the long-term revenue baseline used to score legislation, forcing reduced spending in the future and making it easier for Republicans to ultimately clear a tax overhaul that would lower rates. The $450 billion price tag over ten years for the proposed extenders. That hefty amount has Democrats wary of walking into a possible baseline trap, since making extenders permanent means they have to be counted in the long-term revenue baseline that the Congressional Budget Office uses to score legislation. That hands Republicans a victory for the Democratically favored breaks, as the reduced revenue would call for reduced spending in the future and would make it easier for Republicans to achieve a rate-lowering tax overhaul.