Unlike the past few years, the recent budget agreement has smoothed the way for Congress to recess for its winter break well before Christmas. That has left some traditional end-of-year legislation out in the cold.
That is bad news for the unemployed, as emergency unemployment benefits are scheduled to expire. Yet there is also hopeful news for those who wish to bring some sanity to the tax code because the oft-extended package of miscellaneous tax breaks, collectively called the “tax extenders,” is also scheduled to expire.
The tax extenders are temporary provisions. Like other tax expenditures, they are disguised federal subsidies that encourage certain behaviors. Every year Congress has extended them for at least another year, allowing certain individuals and businesses to lower their tax bills. Extenders represent the ad hoc approach that has made the tax code a complex, inefficient mess of tax expenditures.
Senate Finance Committee Chair Max Baucus (D-Mont.) and House Ways and Means Committee Chair Dave Camp (R-Mich.) came out last week against approving the extenders for another year. Instead, they want a comprehensive overhaul of the tax code that would eliminate wasteful subsidies.
Denying a vote on the...