Thompson: Sweetener didn't sway vote

<p>Among the controversial sweeteners in the $700 billion economic bailout package approved by Congress last week was a $100 million tax break extension for auto racing tracks sought by North Coast Rep. Mike Thompson.</p><p>The St. Helena Democrat, who opposed the financial rescue measure when it first came to the House, switched his vote after the Senate offered a similar version containing the tax benefit.</p><p>Thompson on Thursday denied a link, saying his change came in part from a growing sense that something had to be done to restore confidence in the faltering economy.</p><p>"It was a different time," Thompson said of last week's passage of the historic plan, which was immediately signed by President Bush. "It was clear we needed to take some action."</p><p>But some government watchdogs question whether sweeteners played a role in the House reversal.</p><p>Thompson's legislation, mirrored in the Senate, was meant to extend for two years a tax break given in 2005 that would help about 900 tracks nationwide, including Infineon Raceway in Sonoma County and those owned by Thompson campaign contributors in Florida.</p><p>It allowed speedways to continue to write off depreciation on improvements to their facilities over a seven-year period instead of 15 years, as the IRS otherwise requires, leading to greater deductions and a lower tax burden.</p><p>Florida-based International Speedway Corp., which owns a number of tracks including the Daytona 500, sought the measure, arguing it had a right to the same benefit given amusement parks. The company lobbied House and Senate members, spending nearly $100,000 in the first quarter of this year, according to federal disclosures.</p><p>In addition, the company gave generously to officeholders. Records from the Federal Elections Commission show heads of the company contributed more than $14,000 to</p><p>Thompson's re-election campaign over the past two years.</p><p>A smaller contribution came from Steve Page, president of Infineon, located on Highway 37 in Sonoma County. Page said his track, which is near Thompson's district, wouldn't directly benefit from the legislation because it isn't making upgrades.</p><p>International Speedway Corp. officials did not return phone calls Thursday.</p><p>Ultimately, the legislation was included in a package of tax breaks that were being fought over for months by the House and Senate. House members wanted offsetting tax increases and senators were opposed to them.</p><p>After the initial bailout measure failed and stocks plummeted, Senate leaders placed the entire tax break package in their version of the economic rescue bill.</p><p>Legislation Thompson supported was included. He was one of three Bay Area Democrats, including Rep. Lynn Woolsey of Petaluma, who switched positions to vote for the bailout bill.</p><p>Steve Ellis of the Washington, D.C.-based Taxpayers for Common Sense said he did not know whether the inclusion of the speedway provision prompted Thompson's vote, but his central role in the tax break as well as contributions from speedway owners raises red flags.</p><p>"I can't tell you what was in his head to make the decision," Ellis said. "But those are the facts. They exist and you have to look at them in their entirety."</p><p>Ellis described differences between the two bailout measures as minimal. And he questioned why Thompson would support legislation that costs most taxpayers.</p><p>"At the end of day, this may be good for the racetrack owners, but is it good for the country?" Ellis said.</p><p>Thompson bristled at the notion of a connection between his bill and the bailout vote.</p><p>The member of the powerful House Ways and Means Committee did not ask for it to be included and had no idea what the Senate would do, he said.</p><p>Also, he defended the tax break itself, which he said keeps racetracks on equal tax footing with amusement parks.</p><p>It also helps Infineon, which pumps $56 million a year into the Sonoma County economy, he said.</p><p>Thompson said campaign contributions from industry officials had no influence on his legislation.</p><p>"This is an issue of fairness," Thompson said. "It's a major industry across the country that provides thousands and thousands of jobs."</p><p>News researcher Michele Van Hoeck contributed to this report. You can reach Staff Writer Paul Payne at 762-7297 or paul.payne@pressdemocrat.com.</p>