W.H. threatens veto of GOP tax cut extensions

The Obama administration on Tuesday threatened to veto the House GOP’s efforts to permanently revive expired tax breaks.

The House is expected to vote this week to extend incentives that would allow small businesses to more quickly write off investments and to help S corporations, a type of small business.

In a statement, the White House said it supported extending the provision for small business investments, known as Section 179. But the administration said it could not get on board with extending the $73 billion tax break without an offset.

The administration made a similar argument when the House passed an extension of the credit for business research last month.

House Ways and Means Chairman Dave Camp (R-Mich.) and other Republicans has said that Congress has often extended lapsed tax breaks, commonly known as extenders, without an offset.

The Senate Finance Committee has passed legislation that would revive most of the expired tax breaks for two years, at a cost of more than $80 billion.

But the White House and other Democrats have accused the Republicans of having a double standard by demanding offsets for policies like extending unemployment insurance.

Camp is trying to restore some extenders permanently as a way to help pave the way for tax reform. But a final deal on the expired breaks isn’t expected until after November’s election.