Roll Call: Latest News on Capitol Hill, Congress, Politics and Elections
August 2, 2015

Tax Extenders Bill Is Big Deal for Nevada, Florida

(Tom Williams/CQ Roll Call File Photo)

(Tom Williams/CQ Roll Call File Photo)

Taxpayers from Nevada and Florida can expect to get walloped if Congress doesn’t renew a package of expired tax breaks headed for the Senate floor.

Both states benefit disproportionately from two major expired provisions — the deductibility of state sales taxes and a mortgage forgiveness provision.

Unless Congress acts, homeowners getting relief from their banks in two of the states hit hardest by the housing crash would see a huge tax increase. And because neither  state has an income tax, its taxpayers would be especially hurt if the sales tax deduction isn’t renewed.

“That’s a double whammy for at least those two states,” said Will McBride, chief economist at the Tax Foundation, a nonpartisan research think tank. “A sudden end to those tax breaks, it could be a significant hit.”

National Association of Realtors Deputy Chief Lobbyist Jamie Gregory noted that the mortgage provision has been a priority for Senate Majority Leader Harry Reid, D-Nev.

Nevada and Florida “were hit hard with short sales and principal reductions and debt forgiveness, which is one reason why Majority Leader Reid has been a huge proponent,” he said.

Senate action on the extenders package — approved by the Senate Finance Committee before the recess — could come as soon as next week, Democratic aides said.

“I have positive feelings that we can pass it,” a senior Senate Democratic aide said.

This week will be consumed by debate on a Democratic proposal that would phase in an increase in the minimum wage to $10.10.

Reid is expected to set up a procedural vote on the proposal for Wednesday. If it fails, which is expected due to GOP opposition, Reid could move to confirm nominees. Then the Senate will likely take up an energy efficiency package sponsored by Sens. Jeanne Shaheen, D-N.H., and Rob Portman, R-Ohio.

Congress previously extended the package as part of the broader “fiscal cliff” deal enacted in 2013.

The conservative Club for Growth is calling on senators to oppose the measure.

“This bill is mainly a hodgepodge of special interest earmarks in the federal tax code,” the group said in a release earlier this month. “Thankfully, these extenders expired at the end of 2013, so the best thing the Senate can do now is nothing.

“Majority Leader Harry Reid should cancel consideration of this bill and instead call for broad, pro-growth tax reform that will lower rates and remove other burdensome carveouts in the tax code,” the statement continued.

Democrats, who control 55 votes in the chamber, would need five Republicans to reach the 60-vote threshold to overcome any procedural hurdles, as long as they all vote together.

Two possible Republican votes include Sens. Marco Rubio of Florida and Dean Heller of Nevada.

Rubio is examining the issue carefully, according to an aide.

Heller, who hasn’t said how he plans to vote, wrote a letter in March to Finance Chairman Ron Wyden, D-Ore., and ranking member Orrin G. Hatch, R-Utah, underscoring the importance of the provisions to Nevada.

“Currently, Nevada is in a fragile state of recovery, and in order to spur growth in our state, I request the continuation of the state and local sales tax deduction and Mortgage Forgiveness Debt Relief Act in any tax extenders legislation,” Heller said.

Heller noted many in Nevada owe more on their mortgages than their homes are worth.

“Failure to extend this law will cause many lower and middle class Americans to pay taxes when they refinance or sell their homes in ‘short sales,'” Heller wrote. “It makes little sense to tax people on income they never received, and an extension of this tax relief is needed to further help improve the housing market in Nevada.”

Heller is a co-sponsor of a bill with Sen. Debbie Stabenow, D-Mich., that would extend mortgage forgiveness tax relief for this year and next.

Regarding the sales tax deduction, Heller said reinstating the provision would protect middle-class Nevadans.

“This critical deduction saves Nevada taxpayers millions of dollars and is a vital component of our economy, spurring growth and creating jobs,” Heller said. “Failure to extend this critical deduction will force many lower and middle class Nevadans to bear a higher share of the federal tax burden.”

Also included in the package is a two-year extension of a provision that would allow for all racehorses to be written off over three years, rather than the usual seven years for depreciation.

Senate Minority Leader Mitch McConnell, R-Ky., whose state has a robust horse racing industry, has supported the idea in the past. But it’s unclear how he will vote. He is up for re-election in November and faces a tea party challenger in a May 20 GOP primary.

Chris Chocola, president of the Club for Growth, blasted the provision in a recent Wall Street Journal op-ed.

“Many tax extenders are government spending disguised as tax breaks, such as a three-year depreciation for racehorses,” Chocola said.

Comments (15)

Leave a Comment

Your email address will not be published.

author email

  1. Jack Everett

    April 30, 2014
    5:23 a.m.

    Tax these racist states. It was republicans that caused the housing crisis now let them pay for it!

  2. Deb915

    May 1, 2014
    2:38 a.m.

    I just wanted to tell anybody that might be interested in trading to go to the website Traders Superstore, I just recently bought from these guys and they are a class act, there video course really taught me a lot and their support is the best. Trading isn’t as hard as I thought it was and the money is great!

  3. Melissa Montana

    May 2, 2014
    10:49 p.m.

    Since virtues and moral standards are key pillars upon which liberty rests, attacks upon them undermine the civilized culture they support.

  4. Anonymous

    July 4, 2015
    3:46 a.m.

    Hello my family member! I wish to say that this article is awesome, nice written and include almost all significant infos. I would like to see extra posts like this.

  5. Anonymous

    July 4, 2015
    7:04 p.m.

    Great write-up, I am normal visitor of one’s blog, maintain up the nice operate, and It’s going to be a regular visitor for a long time.

  6. Anonymous

    July 7, 2015
    8:22 a.m.

    Everyone loves what you guys tend to be up too. This kind of clever work and coverage! Keep up the superb works guys I’ve included you guys to my personal blogroll.

  7. Anonymous

    July 7, 2015
    8:07 p.m.

    I like this blog its a master peace ! Glad I noticed this on google .

  8. Anonymous

    July 7, 2015
    11:11 p.m.

    Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point. You definitely know what youre talking about, why throw away your intelligence on just posting videos to your blog when you could be giving us something enlightening to read?

  9. Anonymous

    July 18, 2015
    3:41 a.m.

    I’d incessantly want to be update on new blog posts on this site, saved to fav! .

  10. Anonymous

    July 19, 2015
    11:28 a.m.

    naturally like your web-site however you need to check the spelling on quite a few of your posts. Several of them are rife with spelling problems and I find it very bothersome to tell the truth however I?¦ll certainly come again again.

  11. Anonymous

    July 21, 2015
    3:27 a.m.

    This really answered my drawback, thank you!

  12. Anonymous

    July 24, 2015
    11:23 a.m.

    I saw a lot of website but I believe this one holds something special in it in it

  13. Anonymous

    July 25, 2015
    7:57 p.m.

    Hello. splendid job. I did not anticipate this. This is a impressive story. Thanks!

  14. Anonymous

    July 30, 2015
    8:38 p.m.

    Spot on with this write-up, I truly think this web site needs far more consideration. I’ll in all probability be again to read rather more, thanks for that info.

  15. Google

    Aug. 1, 2015
    7:55 p.m.

    Here are some links to web sites that we link to for the reason that we believe they are worth visiting.

Sign In

Forgot password?



Receive daily coverage of the people, politics and personality of Capitol Hill.

Subscription | Free Trial

Logging you in. One moment, please...