Politico’s Anna Palmer reports that K Street lobbyists are gearing up for a last-ditch effort to save a slew of “tax perks, credits and other goodies worth billions to industry.”
These special tax favors, encapsulated in a “tax extenders” package, have had little trouble passing in recent history. But this year “the price tag — about $30 billion over 10 years — makes them unpalatable when slashing spending is the agenda.” That’s why K Street’s lobbyists have mobilized themselves to defend these special tax breaks for industries such as real estate, energy, and automobiles. One lobbyist even likened passing the package of tax extenders to Luke Skywalker destroying the Death Star:
“I’m working on several tax extenders, and we’re working our butts off,” said Holland & Knight’s Rich Gold, who gave the package a 1-in-10 chance of passing this year. “I’ve also been telling my clients it’s a little bit of Luke Skywalker threading the needle to get to the Death Star.”
While there may be merit to some of the tax policy contained within the tax extenders package (particularly the renewable energy production tax credit), most of these tailored tax credits and tax breaks are a result of lobbying by a handful of industries. They are a prime example of how special interests utilize K Street’s lobbyists to craft public policy for their own benefit.