Military Tax Bill Held Up Due to Pet Projects

(Washington, D.C.) – The Council for Citizens Against Government Waste (CCAGW) today applauded the  House Republican leadership’s removal of the current version of the Armed Forces Tax Fairness Act (H.R. 878) from yesterday’s House schedule after determining that there were not enough votes for passage.  Over the last several weeks, the bill became loaded with special interest projects that members included to help their districts, which detracted from the original intent of the legislation.

“This bill was offered with good intentions, but has since become a disgrace with the addition of so many pet projects,” CCAGW President Tom Schatz said.  “This is a classic example of how some members of Congress will take advantage of any chance they get to bring home the bacon to their districts at the expense of the rest of the country.”  Schatz appeared on NBC Nightly News on March 5 to criticize the bill.

Originally, the purpose of the bill was to provide tax breaks to military personnel, their families, and active reservists.  Last week, House Ways and Means Committee Chairman Bill Thomas (R-Calif.) announced that members could attach additional tax breaks they deemed to be “important.”  As a result, $500 million in targeted tax breaks, many of which have failed to pass in Congress for years, were added to the $487 million military tax cut.  Meanwhile, the Senate version of the bill contained no such provisions.

“As our country prepares for war, we need to show support for the men and women who are protecting our nation,” Schatz continued.  “It seems as if some members of Congress are trying to take advantage of this situation to protect their incumbency.  Loading down this bill with special interests only delays its final passage.”

The added tax breaks included eliminating of a 30 percent tax on foreigners who bet on U.S. horse races, reducing on the tax for the weather-related sale of livestock, removing of the excise tax for tackle boxes, and equalizing the tax on bows and arrows made both in and outside the U.S.

“We urge Chairman Thomas to strip the added tax breaks so that Congress can pass the legislation immediately,” Schatz concluded.  “Hopefully this bill will serve as a reminder for members who try to place special interests above the nation’s priorities.”

The Council for Citizens Against Government Waste is the lobbying arm of Citizens Against Government Waste, the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.  For more information, please visit www.ccagw.org.