We're bailing out WHAT?

[unixronin]

From danjite:

The latest version of the "Bailout Bill" creates tax credits or benefits for:

- Film and Television Productions (Sec. 502)

- Wooden Arrows designed for use by children (Sec. 503)

- 6 page package of earmarks for litigants in the 1989 Exxon Valdez incident, Alaska (Sec. 504)

- Virgin Island and Puerto Rican Rum (Section 308)

- Auto Racing Tracks (317)

- Wool Research (Sec. 325)

I ain't saying nothing.

WHISKEY TANGO FOXTROT, OVER

This "bailout" gets more surreal by the day.  Did someone put LSD in the Congressional coffee pot?

Comments

[jhetley.livejournal.com]

>Did someone put LSD in the Congressional coffee pot?

Nah. It's in the DC municipal water.

[http://users.livejournal.com/crossfire_/]

Alas, that link barks 403 at me. Is there an article elsewhere that's the source?

[mazianni.livejournal.com]

http://www.opencongress.org/bill/110-h1424/show

There's a link there that goes to the full text of the bill.

If you drill through enough links you get to here (http://banking.senate.gov/public/index.cfm?Fuseaction=Articles.Detail&Article_id=76b1aea4-39b8-404f-b3cd-f8b6c46e3b14&Month=10&Year=2008).

The pdf version of the bill is 451 pages long.

Sec. 325. Extension and modification of duty suspension on wool products; wool research fund; wool duty refunds.

SEC. 325. EXTENSION AND MODIFICATION OF DUTY SUSPENSION ON WOOL PRODUCTS; WOOL RESEARCH FUND; WOOL DUTY REFUNDS.

(a) EXTENSION OF TEMPORARY DUTY REDUCTIONS.—
Each of the following headings of the Harmonized Tariff Schedule of the United States is amended by striking the date in the effective period column and inserting ‘‘12/31/2014’’:

(1) Heading 9902.51.11 (relating to fabrics of worsted wool).
(2) Heading 9902.51.13 (relating to yarn of combed wool).
(3) Heading 9902.51.14 (relating to wool fiber, waste, garnetted stock, combed wool, or wool top).
(4) Heading 9902.51.15 (relating to fabrics of combed wool).
(5) Heading 9902.51.16 (relating to fabrics of combed wool).

(b) EXTENSION OF DUTY REFUNDS AND WOOL RESEARCH TRUST FUND.
(1) IN GENERAL.—Section 4002(c) of the Wool Suit and Textile Trade Extension Act of 2004 (Public Law 108–429; 118 Stat. 2603) is amended-
(A) in paragraph (3)(C), by striking ‘‘2010’’ and inserting ‘‘2015’’; and
(B) in paragraph (6)(A), by striking‘‘through 2009’’ and inserting ‘‘through 2014’’.

(2) SUNSET.—Section 506(f) of the Trade and Development Act of 2000 (Public 106–200; 114 Stat. 303 (7 U.S.C. 7101 note)) is amended by striking ‘‘2010’’ and inserting ‘‘2015’’.

[http://users.livejournal.com/crossfire_/]

Thanks.

That's strange...they basically made an omnibus budget bill.

But I think it's important to note that only Division A (which ends at section 302) is the actual Emergency Economic Stabilization Act. Everything else in the bill is separate from the Stablization Act. It's all in the same bill, so a vote for one is a vote for all, but the things outside of Division A are not a part of the Stabilization Act.

Not how I would have chosen to do it...I mean, you'd think they'd do the Economic Stabilization Act in a bill by itself, if for no other reason than to avoid causing the confusion we're seeing here. That said, this is a fairly common procedural shortcut.

[unixronin.livejournal.com]

Yeah, they attach stuff as riders that they don't think would pass on its own.... and collect stuff into massive bills that nobody will ever read in full before voting. :p

[elegantelbow.livejournal.com]

Never underestimate the value of wool research!

[ithildae.livejournal.com]

It's the stupid season. There is an election in five weeks. The bailout is unpopular with the voters. Congresscritters are trying to figure out how to pass the thing AND get reelected.

[luxobscura.livejournal.com]

Is there going to be a mandatory waiting period, background check and microstamping on the wooden arrows for kids?

[luxobscura.livejournal.com]

ZOMG BAN ALL HIGH CAPACITY QUIVERS

[rbos.livejournal.com]

Looters.

[mazianni.livejournal.com]

It looks like the silly crap is extensions on existing tax breaks.

There's a piece on Business Week about the bill.

http://www.businessweek.com/election/2008/blog/archives/2008/10/and_here_we_go.html

[unixronin.livejournal.com]

Never mind "helping some taxpayers avoid the alternative minimum tax", they should just repeal the damned thing. It was a stupid idea in the first place.

Increasing the FDIC insurance limit is a good thing though. It probably gets somewhere near to keeping pace with inflation....

[novel-tharkun.livejournal.com]

I dunno, I'm starting to think we should repeal the standard tax. The AMT eliminates so many of the gamed discounts, credits, specific deductions, etc that it simplifies the process & reduces some of the disparities often thought to be unfair.

[unixronin.livejournal.com]

I absolutely agree we should repeal the standard tax. The existing Federal tax code has become so bloated, labyrinthine and full of loopholes and special concessions that even the IRS doesn't fully understand it any more. It's time to burn it and start over.

[jmkelly.livejournal.com]

Burn it and start over? That's what they said twenty years ago -- and when they finished, it was more bloated and labyrinthine than ever. *Sigh*.

[unixronin.livejournal.com]

Probably because they may have said that, but they didn't — they just did a minor cleanup and then bolted a whole lot of new stuff on top.

[ithildae.livejournal.com]

The tax code is one of the few areas that the government has to encourage behavior that it deems beneficial to society (and government.) Giving up the ability to incent stabilizing behaviors right now is not rational.

The AMT was a populist sop. Congress would be politically suicidal to tamper with it now.

Think hard about it, Who do you want spending centralized capital in our economy? The rich, who know how to do things successfully? Or Congress?

[novel-tharkun.livejournal.com]

Who do you want deciding what is worthy of incentivization?

The people who decided to incentivize homeownership to the extent that the housing market was unreasonably held up? The people who think that it is acceptable to hide what the budget is for so they can run private programs that are illegal?

[attutle.livejournal.com]

The downside to FDIC insurance is that banks can do stupid shit without having to pay higher insurance premiums. Some banks are responsible, others are stupid, but they all get the same coverage, and the costs are spread out. There is no feedback mechanism for underwriters to signal banks to take fewer risks, so there are fewer costs involved with granting foolish loans. That's part of how we got where we are today.

[unixronin.livejournal.com]

You have a definite point.

On the other hand, it protects the small investors er ... depositors from bank failures. (Temporary brainfart there.) On balance, I think it's a win.

[attutle.livejournal.com]

Oh, I'm all for insured accounts, it's just that I don't think banks should be treated the same regardless of the risks they take.

[unixronin.livejournal.com]

And you won't catch me arguing with that. Protect the depositors, sure. The bankers who created the problem? Let'em sink as they deserve.

Its pork

[mrmeval.livejournal.com]

If I were there I'd shove every infuriating, mocking, ridiculing thing I could. I'd want people in a seething rage over it.

;)

Re: Its pork

[unixronin.livejournal.com]

They aren't already? :)

Re: Its pork

[attutle.livejournal.com]

Most people don't own either a pitchfork or a torch.

Re: Its pork

[unixronin.livejournal.com]

But EVERYONE should be entitled to a torch and pitchfork! At government taxpayer expense! ;)

[johnkzin.livejournal.com]

It's bribery, pure and simple. They want to get the house reps who voted against the bill to change their minds, so they're adding "sweeteners" to sway their votes.

And, given the level of integrity of the average congressman, I'm worried that it'll work.

[unixronin.livejournal.com]

I'm reminded of a comment from then-Senator Arlen Specter. Asked in a TV interview about "the bad old days" when every Congressman was for sale to the highest bidder, he replied,
"Oh, no, those days are gone. It just doesn't happen like that any more. Now, you have to rent them."

[jmkelly.livejournal.com]

I'm reminded of the old saying that compares law to sausage: you may like it, but you don't want to know how it's made.

Some political scientist has probably already worked out the correlation between how difficult a bill is to pass and how many weird little amendments it accretes. The "Mom and Apple Pie Veneration Act" probably sails through with no changes at all; the "Let's Actually Do Something That Requires More Than Thirty Seconds of Actual Thought Act" requires so many quid pro quos it comes out looking like a Christmas tree.

[robbat2.livejournal.com]

Here's something interesting that just turned up, noting that the "Great Depression" is the wrong model, and we need to look back a little further:
http://chronicle.com/temp/reprint.php?id=477k3d8mh2wmtpc4b6h07p4hy9z83x18

riders and earmarks

[felinecanine.livejournal.com]

For better or worse, I suspect most large legislation like this has
stuff like this tacked on. We just don't usually pay much attention
to it. I think a lot of this is just politics - schemes designed to
get one more vote in favor of the bill.