Blanche Lincoln

Horse breeders saddled with tax scrutiny

Horse breeders saddled with tax scrutiny

The battle over the federal budget has been playing out slowly in Congress for weeks, but it came galloping toward Maryland's thoroughbred farms recently in the form of a proposed tax increase.

After threatening to trim the nation's ballooning budget deficits in part by ending tax breaks on corporate jets, high-priced yachts and hedge funds, Senate Democrats also proposed eliminating a $126 million tax carve-out for the nation's horse racing industry.

The idea has prompted an outcry from Maryland's already struggling horse breeders.

"It's a fallacy that only millionaires and billionaires own racehorses," Cynthia McGinnes, a breeder and owner of the...