White House skeptical of possible deal on tax breaks

The White House on Monday appeared to throw cold water on an emerging deal in Congress on extending tax breaks, saying reports were “not promising.”

“The reports suggest that there may be some in Congress who want to provide tax relief to businesses and to corporate insiders but not ensuring that those benefits are shared by middle-class families,” White House press secretary Josh Earnest said.

“So certainly the administration would not be supportive of a package that provided relief to corporations without providing relief to middle-class families.”

Senate Majority Leader Harry Reid (D-Nev.) and House Ways and Means Committee Chairman Dave Camp (R-Mich.) are working on a legislative that would renew and make permanent a research and development tax credit for businesses, according to The New York Times.

In exchange, Democrats would get a permanent extension on tax breaks for college costs. And lawmakers are also considering making permanent a measure that would allow small businesses to deduct nearly every corporate investment.

But many in the president’s party think the deal should also include making permanent the earned income tax credit, a welfare program for the working poor. Democrats also want to extend a tax credit for the children of poor families.

“And an investment in significant, unpaid-for tax breaks for corporations without giving a tax break to middle-class families is not consistent with that philosophy at all,” Earnest said.