White House veto threat shelves possible plan to extend tax breaks for businesses, individuals

Economic Indicators Associated Press

A White House veto threat appears to have put on ice a congressional effort to permanently renew a handful of generous tax breaks for businesses and individuals. Officials say that the plan, brewing behind closed doors on Capitol Hill, favored corporations over the working class.

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The unusual veto threat came before the parameters of a potential agreement were even revealed.

Speculation on Capitol Hill on Tuesday focused on a potential agreement to permanently enact tax breaks on business investments in new equipment and research and development, part of a plan that would renew dozens of expired tax breaks for businesses and individuals.

The White House immediately threatened a veto, saying Congress should also make permanent more generous tax credits for the working poor and people with children.