There are supposed to be a few bedrock beliefs that dominate conservative political thought. The corporate and theocratic wings of the GOP may not agree on everything, but at an absolute minimum, they’re supposed to love tax cuts at all times.
But a funny thing happened on the way to passing sweeping tax cuts for businesses rebuilding along the Gulf Coast — a big chunk of the Republican base decided they don’t like the idea. No, it’s not because of the deficit. And no, it has nothing to do with improving a tax structure that’s already slanted towards the wealthy. Instead, it’s because they’re worried about sin.
Social conservatives have been rubbed the wrong way by legislation passed by the Senate that would give tax breaks to Gulf Coast businesses offering back rubs, booze and baccarat.
Argument over the breaks is ready to boil over in the House, where social conservatives are bumping up against lawmakers who support the gambling industry.
The Senate approved $7 billion of relief over five years in breaks for businesses that invest in the hurricane-ravaged Gulf Coast region, including casinos, massage parlors, liquor stores and golf courses — industries that typically have been excluded from preferential federal tax treatment — as part of its tax cut-reconciliation bill.
That doesn’t suit far-right groups at all. The Senate tax-cut bill offers across-the-board exemptions to businesses, so every commercial enterprise would be eligible. Several conservative activists want to narrow this, a lot, and have convinced Rep. Frank Wolf (R-Va.) to champion their cause.
“Casinos make plenty of money off of people,” said Tom McClusky, director of government affairs for the Family Research Council, which is pressuring lawmakers to support Wolf. “They don’t need the tax breaks to help them.”
What a fascinating standard for a conservative. The oil industry makes plenty of money off of people too, but I didn’t hear the FRC complaining about the Republican energy bill in June despite its tax breaks for the already-flush oil companies.
According to The Hill, this little squabble is pitting some of the major GOP factions against each other.
On the one hand we have the anti-gambling religious right that is ready to fight against tax breaks for casinos, bars, and massage parlors. On the other we have business interests that don’t like the idea of Congress picking and choosing which industries they like and which ones they find immoral.
Supporters of the breaks say all businesses should be treated equally as Congress tries to provide relief to the Gulf Coast region. The gambling industry, they point out, is a major employer in the affected states.
Casinos should be able to “rebuild on the same playing field,” said Amy Maier, chief of staff to Congressional Gaming Caucus Chairman Jim Gibbons (R-Nev.).
Wolf and his allies are careful to cast the issue more as one of precedent than of morality, but they are trying to draw a clear distinction among types of businesses, an effort that puts them at odds with supporters of the named industries and fiscal conservatives who believe the tax code should treat businesses equally.
“Giving tax breaks to massage parlors, casinos, liquor stores and golf courses while we cut federal programs for the less fortunate cannot be explained to the American people,” Wolf said in an October floor statement on the issue.
What a fascinating bit of insight from Rep. Wolf. We’re slashing support for low-income Americans, but we should be careful about the message we send to the nation. As far as Wolf and his allies are concerned, tax breaks for millionaires and Big Oil can be explained to the American people, but tax breaks for casinos and massage parlors can’t.
This should be a fascinating debate to watch as it unfolds in the House. My money (if you’ll pardon the expression) is on the very wealthy casinos getting the same breaks as other industries and the religious right getting nothing, but we’ll see.