John Sununu voted this morning against a package to extend the tuition tax credit and provide incentives for clean energy development. The package Sununu voted against also contained tax deductions for teachers who spend their own money on classroom supplies, which currently affects over 20,000 New Hampshire teachers annually. The bill Sununu opposed would have extended these important tax cuts without putting American taxpayers deeper into debt by including offsets that rein in breaks for multinational corporations and hedge fund managers investing offshore.
“At a time when Granite Staters are feeling the weight of the failed Bush-Sununu economic policies on their shoulders, Sununu voted against lightening their loads,” DSCC spokesman Matthew Miller said. “John Sununu could have stood up for teachers who pay for supplies out of their own pockets and for families struggling with college tuition costs, but instead he inexplicably put multinational corporations ahead of New Hampshire families.”
Key Bill Provisions
- Increases incentives for clean energy entrepreneurs by $18 billion to promote energy independence and create jobs.
o Other incentives include solar, biofuels, and energy efficiency of buildings.
- Extends the tuition deduction, which makes college more affordable for over 4.4 million families, with an average tax cut of $1,120.
- Expansion of the child tax credit to extend the $1000-per-child tax credit to reach an additional 2.9 million children.
- Extension of the teacher expense deduction, which allows 3.4 million families of teachers a deduction for buying supplies for their classrooms.
- Extension of the research and development tax credit, which helps American businesses innovate; over 27,000 businesses will take this credit in 2008, with Minnesota and Texas being among the states with the most companies utilizing this provision.
Offsets The bill extends these important tax cuts without putting American taxpayers deeper into debt by including two offsets:
- Ends the deferral of offshore income for hedge fund managers – require hedge fund managers who invest in offshore investment funds to pay taxes on that income when it is earned, rather than putting off taxation until those funds are brought back to the U.S.
- Delays implementation of a new tax break for multinationals – the worldwide allocation of interest provision enacted in 2004 and slated to take effect in 2009 would be delayed, leaving businesses in the same position as today.