Tax-Cutting Fever

With the $1.3 trillion tax cut signed into law (and the Federal Government already forced to borrow to pay for the tax-rebate checks just now going out), you would think Congress had finished writing checks for a while. Wrong. In the energy bill passed by the House last week lies a hidden plum: $34 billion in tax cuts over 10 years, mostly going to–yep–oil-and gas-exploration firms. The House-passed patients’ bill of rights also contains some little-noticed tax breaks: $16 billion over 10 years for small businesses and folks who save for medical care. In all, about $80 billion in tax cuts have been approved in addition to those enacted in Bush’s tax-cut measure. Where’s the money coming from? Despite the economic downturn, the answer from House Republicans still is, the surplus.

–Reported by Michael Duffy