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White House veto threat shelves possible tax plan

FILE - In this Jan. 28, 2014, file photo, a jar of biodiesel fuel sits on display during the Iowa Renewable Fuels Association meeting in Altoona, Iowa. A White House veto threat appears to have put on ice a congressional effort to permanently renew a handful of generous tax breaks for businesses and individuals. Dozens of tax perks would have been extended through the end of next year, including breaks for race horse owners, manufacturers of electric motorcycles and improvements at NASCAR tracks. Other recently expired tax breaks include tax credits for biodiesel, for coal produced in Indian country, and breaks for energy-efficient homes and commercial buildings. (AP Photo/Charlie Neibergall, File)
FILE - In this Jan. 28, 2014, file photo, a jar of biodiesel fuel sits on display during the Iowa Renewable Fuels Association meeting in Altoona, Iowa. A White House veto threat appears to have put on ice a congressional effort to permanently renew a handful of generous tax breaks for businesses and individuals. Dozens of tax perks would have been extended through the end of next year, including breaks for race horse owners, manufacturers of electric motorcycles and improvements at NASCAR tracks. Other recently expired tax breaks include tax credits for biodiesel, for coal produced in Indian country, and breaks for energy-efficient homes and commercial buildings. (AP Photo/Charlie Neibergall, File)

By Associated Press 4 min read

WASHINGTON (AP) – A White House veto threat appears to have put on ice a congressional effort to permanently renew a handful of generous tax breaks for businesses and individuals. Officials say that the plan, brewing behind closed doors on Capitol Hill, favored corporations over the working class.

The unusual veto threat came before the parameters of a potential agreement were even revealed.

Speculation on Capitol Hill on Tuesday focused on a potential agreement to permanently enact tax breaks on business investments in new equipment and research and development as part of a plan that would renew dozens of expired tax breaks for businesses and individuals both.

The White House immediately weighed in with a veto threat, saying Congress should also make permanent a top Obama administration priority: extending more generous tax credits for the working poor and people with children. They were left out of the potential pact and expire at the end of 2017. Democrats fear they won’t be renewed if Republicans control Congress or retake the White House.

“The president would veto the proposed deal because it would provide permanent tax breaks to help well-connected corporations while neglecting working families,” deputy White House press secretary Jennifer Friedman said. A senior White House official said the president was personally working the phones to try to kill the plan.