By Rick Horrow and Karla Swatek
January 7, 2013
Arguably one of the biggest winners in the recent fiscal cliff deal isn’t Democrats or Republicans… it’s NASCAR track owners.
Included in the fiscal cliff compromise signed last week by President Obama ] is a measure allowing racetrack owners to accelerate their depreciation expenses, thus reducing the taxes they must pay. The so-called “NASCAR loophole” is saving track owners $46 million this year and $95 million through 2017.
The “NASCAR loophole originally” was enacted in 2004, and since that time, track owners have spent hundreds of thousands of dollars lobbying Congress to keep it. They argue that lowering their tax burden helps to improve the fan experience at races. While that might be trues, it’s worth remembering that $95 million in tax breaks for racetracks means $95 million in lost revenue for taxpayers.