Corporate Tax Subsidies in the House & Senate 1997 Tax Plans House Senate Effective Official Estimate CTJ Re-Estimate
(Estimated cost in millions of dollars) Bill Bill dates 5-yr cost 10-yr cost 5-yr cost 10-yr cost
Repeal most of corporate Alternative Minimum Tax (timber, oil, etc.) YES no 1/1/1999 on $ –11,774 $ –22,190 $ –23,690 $ –71,200
Corporate capital gains breaks for timber, insurance corps., etc. YES no 1/1/1998 on –7,779 –18,889 –9,300 –22,700
Added real estate capital gains conversion tax sheltering YES YES 5/7/1997 on –2,090 –4,494 –2,090 –4,494
R&E tax credit extension YES YES 19-24 mon. –4,204 –4,380 –4,204 –4,380
Extend ethanol tax breaks past 2000 (with slight modifications) no YES 2001-07 –946 –3,656 –946 –3,656
50% credit for business-paid day care costs (in addition to regular deds.) no YES 98 & 99 –2,606 –2,625 –2,606 –2,625
Special capital gains breaks for certain “risky” investments (retroactive) no YES 8/10/1993 on –719 –2,244 –719 –2,244
Independent contractor “safe harbor” rule YES no 1/1/1998 on –1,012 –2,205 –14,340 –38,200
New tax breaks for exports of software YES YES 1/1/1998 on –568 –1,717 –568 –1,717
New tax-exempt bond breaks for private college bonds, etc. YES YES 1/1/1998 on –314 –960 –314 –960
Business tax credits for certain wages (paid to welfare recipients, etc.) YES YES 12-20 mon –860 –874 –860 –874
AMT breaks for farming businesses (retroactive) YES YES 1/1/1988 on –811 –873 –811 –873
Increase tax breaks for multinational employees living abroad YES no 1/1/1998 on –244 –801 –244 –801
Extra corporate tax deductions for donations of used computers, etc. YES no 1/1/1998 on –268 –688 –268 –688
Increase foreign tax credits for dividends from partially owned cos. YES no 1/1/1998 on –32 –497 –32 –497
Repeal short-term stock sale limits on regulated investment cos. YES YES DOA on –134 –447 –134 –447
Tariff breaks for Sara Lee, etc. YES no 1998 –217 –217 –217 –217
Additional tax-exempt bond arbitrage no YES 1/1/1998 on –37 –201 –37 –201
Income averaging for farm businesses no YES 1/1/2001 on –168 –168 –168 –168
Added percentage depletion for certain oil production YES no 98&99 –164 –164 –164 –164
Special rule for consolidating life-insurance ops. of savings banks (retro.) YES no 12/31/1991 on –61 –96 –61 –96
Exception from foreign personal holding company rules no YES 1998 –94 –94 –94 –94
Special rule for thrifts that became [sic] large banks (retroactive) no YES retroactive –32 –39 –32 –39
Eliminate withholding on foreign ship employees no YES 1/1/1998 on –15 –30 –15 –30
Treatment of securities positions under Subpart F no YES 1/1/1998 on –9 –19 –9 –19
Independent contractor status for bakery drivers YES no 1/1/1998 on –15 –18 –15 –18
Totals, 26 Provisions: 17 16   $ –35,173 $ –68,586 $ –61,938 $–157,402

Last Updated on 7/22/97