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

[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.