With all that’s been happening this week on Capitol Hill, post-Katrina tax breaks for Gulf Coast businesses has been lost in the media shuffle. It was an interesting legislative debate, though, because it pitted two conservative constituencies against each other — with a surprising result.
President Bush signed legislation Wednesday that provided $8.7 billion in tax breaks over 10 years for Gulf Coast businesses, a measure he said was part of the government’s plan to help the region rebuild from destructive hurricanes.
“This important bill will help the citizens of the Gulf Coast continue to put their lives back together and rebuild their communities in the wake of the devastating hurricanes that hit the region,” Bush said before signing the legislation.
The measure, known as the Gulf Opportunity Zone Act of 2005, sets up a special enterprise zone in the coastal area where businesses and jobs were destroyed after the Aug. 29 storm. The tax breaks for business investment are aimed at luring companies into the region and keeping those that are already there.
Well, some of the businesses anyway. Christian conservatives in the GOP base didn’t like the tax-break bill, as it was originally written, because many of the businesses that would benefit, particularly along the coast, are casinos, massage parlors, and liquor stores. The religious right will play along with a tax-cut agenda, but the movement didn’t care for these particular beneficiaries.
I assumed that when lobbyists for wealthy casinos went up against the James Dobson crowd over a business tax-break bill, Dobson didn’t stand a chance. I was wrong. Rep. Frank Wolf (R-Va.) took up the religious right’s cause and actually stripped the bill of breaks for businesses the GOP base doesn’t like.
Naturally, the far-right is thrilled. Dobson’s Focus on the Family issued an alert to its membership this week saying:
Chad Hills, gambling analyst for Focus on the Family Action, said casinos are flourishing.
“This is a $73 billion industry and they can easily rebuild,” he said. “They will rebuild regardless of whether they get tax exemptions or not.”
Hmm, businesses that already have a lot of money don’t deserve more tax breaks. If only we could convince more conservatives to take the same attitude when it comes to individuals. And the oil industry. And the pharmaceutical industry. And insurance companies.