WASHINGTON, Nov. 3 (UPI) -- U.S. Senate Democrats are trying to avert reneging on pledges to rein in tax cuts not offset by matching revenue, a report says.
Congressional rules stipulate strict "pay-go" rules meant to offset tax cuts by paying for them with revenue generated elsewhere, such as postponing corporate tax breaks.
The House Ways and Means Committee Thursday adopted a $76 million bill extending several tax breaks, including freezing the alternative minimum tax. The bill offsets that by dropping tax breaks mainly targeting private equity funds and other investments, The Washington Post reported Saturday.
Offsetting the freeze on the alternative minimum tax may prove a challenge for House Democrats facing stiff opposition from their Republican counterparts.
Democrats are skeptical they can generate enough votes to adhere to the "pay-go" rules amid concerns the alternative minimum tax is affecting middle class Americans.
The current House Ways and Means Committee bill offsets a $76 million bill that retains child tax credits, college tuition deductions, and other tax cuts by limiting tax deferrals by corporate executives and postponing other corporate tax breaks, the Post said.
The most divisive issue, however, is the rescinding of tax breaks on income generated through venture capital funds, real estate and private equity funds and other collaborations that are the origin of munificent campaign donations, including sizable contributions to many Democratic presidential candidates, the Post said.
