Tax Cuts for Ship Production. Veil lifted.
http://www.nytimes.com/2004/10/19/business/19corptax.html?hp&ex=1098244800&en=9c348723956b0000&ei=5094&partner=homepage wrote:
2 Shipbuilders Get Big Breaks in New Corporate Tax Bill
WASHINGTON, Oct. 18 - A little-noticed provision in the sweeping corporate tax bill that passed Congress last week would reduce taxes at two major military contractors by nearly $500 million over the next 10 years.
The provision, which primarily benefits General Dynamics and Northrop Grumman, would allow shipbuilders to postpone their taxes for years on profits from building ships and submarines for the Navy.
The new provision would benefit a handful of major shipyards, all owned by one of the two military conglomerates. They include the Bath Iron Works in Maine acquired by General Dynamics in 1995 and the company's Electric Boat division in Groton, Conn., as well as the Northrop-owned Newport News shipyard in Virginia.
The new tax break would reverse a rule that Congress imposed as part of the sweeping tax overhaul of 1986, when lawmakers in both parties were incensed that major military companies often paid no income taxes despite earning billions of dollars providing major weapons systems to the military.
I'm pretty sure where this is heading, and Cheney can laugh the length of his entire stroll to the bank... :?
Even if its not for personal gain. When the govenrment promised to ease the burden on small and medium sized businesses, I didn't think this is what they meant.
Huh...I wonder what they would consider a
big business then?
-Dolce
