Wednesday, 2 January 2013

The "NASCAR" Solution

Somewhere in the midst of the new tax bill, which saved America (if you watch CNN, you get that feeling)....there's this little piece of writing that says.....under section 168(i)(15) of the federal tax code.....we, the taxpayer, will allow NASCAR speedways to write off their costs over seven years.  The actual tax savings to NASCAR?  Around forty million....more or less.  The current rules say that they have to use 15 to 40 years to write off expenses.  So we basically gave away forty million to a bunch of rich folks.

How'd this happen?  Well....the NASCAR folks have a lobby group in DC.  The lobby group has a task in maintaining close contact to a couple of senators and representatives.  The lobby guys find out the favorite charities, the favorite relatives, and at the right time....toss some cash into a re-election campaign.

You can imagine Senator Tubby sitting there with some worthless nephew having finished college and no real job action.  The lobby guys find out the issue.....line up some bank they do business with, and arrange for Senator Tubby's nephew to get hired.  The bank will ensure he gets a dead-end position and a pay-check for $40k a year.  The senator's wife might have a charity operation and at the right party.....drops a $50k check into the pot.

How many little 'deals' were in the package that the House and Senate passed?  No one is really sure.....maybe twenty.....maybe a hundred.  Nickel by nickel.....they all count up for a fair sum.  Who inserted the piece into the bill?  Well.....that's an interesting question, but you never find out that kind of information.

What you should know by the end of this that NASCAR somehow fits into the salvation of America and it's budget issues.  We would surely fail as a nation....if NASCAR goes under. And vice-versa.