Senate socks it to the taxpayers - increases $700B by 16%
Last night the Senate passed the Emergency Economic Stabilization Act of 2008 by 74 to 25. But they added another $110 billion to the price tag to entice the House to pass the bill. There are some good albeit costly provisions but most should disgust American taxpayers!
The FDIC insurance top was increased from $100,000 to $250,000. This is a limit that had not kept with the times and was overdue to be increased. But many tax breaks were included and this may lose democratic votes in the house. It’s hard to comprehend an Emergency Economic Stabilization that substantially increases the deficit with its pork.
Some of the ridiculous items added to tempt the house nay-sayers:
The FDIC insurance top was increased from $100,000 to $250,000. This is a limit that had not kept with the times and was overdue to be increased. But many tax breaks were included and this may lose democratic votes in the house. It’s hard to comprehend an Emergency Economic Stabilization that substantially increases the deficit with its pork.
Some of the ridiculous items added to tempt the house nay-sayers:
- $6 million in excise tax exemptions for wooden arrows added by Oregon Senators to benefit manufacturers in their state (then Senator Wyden voted against it)
- $100 million in write-offs to the owners of racetracks
- $192 million refund of excise tax to Rum manufacturers
- $49 million in taxes stays with the Alaskan plaintiffs in the Exxon Valdez litigation
- $148 million in duty reductions on wool products for fabric and clothing manufacturers
- $478 million in tax deductions to Hollywood film makers to encourage filming in the US
Hi,
Experts are proposing a solution. Instead of allowing the banks to buy back the warrants themselves, the Treasury should auction them off to private investors. That gives taxpayers a better return on the government's investment.
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This is a really interesting story. Keep it up, my colleagues would love this.
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Tax must impose properly to the communities. Government officials should not also misuse their authority in implementing laws.
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