Thursday, October 02, 2008

Senate OKs $700B Bailout

The U.S. taxpayers suffer a terrible indignity... and we don't even get kissed!

Yesiree, gentle readers, the Senate did it. By a lopsided 74-25 vote, our corporo-fascist U.S. Senate voted to approve the largest example of corporate welfare in the history of the planet. From this morning's Deseret News story:

WASHINGTON — In a historic vote, the Senate approved a massive $700 billion rescue plan for the nation's finance system Wednesday night but only after tacking on another $110 billion in tax breaks to lure votes from both parties.
A strong bipartisan majority rallied behind the controversial Wall Street bailout package, passing it by 74-25. Utah Sens. Orrin Hatch and Bob Bennett both voted for the legislation.
In the House, leaders were working feverishly to convert enough opponents of the bill to push it through by Friday, just days after lawmakers there stunningly rejected an earlier version and sent markets plunging around the globe.
For those who remain as yet unclear about how the banking cartel bailout actually works, here are the mechanics in a nutshell:

The government takes $700 billion away from you, and gives it back to the banks, to lend to you!

Elegant plan...ainnit?

As gentle reader Danny commented in last night's thread, Bush, Paulson et al. will be putting the arm on members of the U.S. House of Representatives, who at this juncture represent the last bulwark against the final gutting of what's left of American free market capitalism. All the bankers need are 12 votes; and at least one U.S. House Republican has already rolled over.

In that connection, we once again post our helpful U.S. Congress contact link:

Utah in the 110th Congress

Representatives Bishop, Cannon and Matheson are probably standing by the phone right now, waiting to hear what their constituents think.

And if some of you are still undecided about this reckless intervention into the private sector by the forces if Big Government, and the looting of the federal treasury by corrupt banking interests, we link this most excellent crib sheet:

Ten Reasons Not To Bail Out Wall Street

Knock yourselves out, O gentle ones.


Ian said...

What started as a three-page “blank check” request for $700 billion to buy “toxic” assets on Wall Street, has now passed the Senate as a 451-page pork-laden piece of detritus. I sifted through the table of contents for tax exemptions and picked out a few of my favorites:

Sec. 101: Extension of alternative minimum tax relief for nonrefundable personal credits.
Sec. 102: Extension of increased alternative minimum tax exemption amount.
Sec. 201: Deduction for state and local sales taxes.
Sec. 202: Deduction of qualified tuition and related expenses.
Sec. 203: Deduction for certain expenses of elementary and secondary school teachers.
Sec. 204: Additional standard deduction for real property taxes for nonitemizers.
Sec. 205: Tax-free distributions from individual retirement plans for charitable purposes.
Sec. 304: Extension of look-thru rule for related controlled foreign corporations.
Sec. 305: Extension of 15-year straight-line cost recovery for qualified leasehold improvements and qualified restaurant improvements; 15-year straight-line cost recovery for certain improvements to retail space.
Sec. 307: Basis adjustment to stock of S corporations making charitable contributions of property.
Sec. 308: Increase in limit on cover over of rum excise tax to Puerto Rico and the Virgin Islands.
Sec. 309: Extension of economic development credit for American Samoa.
Sec. 310: Extension of mine rescue team training credit.
Sec. 311: Extension of election to expense advanced mine safety equipment.
Sec. 312: Deduction allowable with respect to income attributable to domestic production activities in Puerto Rico.
Sec. 314: Indian employment credit.
Sec. 315: Accelerated depreciation for business property on Indian reservations.
Sec. 316: Railroad track maintenance.
Sec. 317: Seven-year cost recovery period for motorsports racing track facility.
Sec. 318: Expensing of environmental remediation costs.
Sec. 319: Extension of work opportunity tax credit for Hurricane Katrina employees.
Sec. 320: Extension of increased rehabilitation credit for structures in the Gulf Opportunity Zone.
Sec. 321: Enhanced deduction for qualified computer contributions.
Sec. 322: Tax incentives for investment in the District of Columbia.
Sec. 323: Enhanced charitable deductions for contributions of food inventory.
Sec. 324: Extension of enhanced charitable deduction for contributions of book inventory.
Sec. 325: Extension and modification of duty suspension on wool products; wool research fund; wool duty refunds.
Sec. 401: Permanent authority for undercover operations [as related to tax provisions].
Sec. 402: Permanent authority for disclosure of information relating to terrorist activities [as related to tax provisions].
Sec. 501: $8,500 income threshold used to calculate refundable portion of child tax credit.
Sec. 502: Provisions related to film and television productions.
Sec. 503: Exemption from excise tax for certain wooden arrows designed for use by children.
Sec. 504: Income averaging for amounts received in connection with the Exxon Valdez litigation.
Sec. 505: Certain farming business machinery and equipment treated as five-year property.
Sec. 506: Modification of penalty on understatement of taxpayer’s liability by tax return preparer.
Sec. 601: Secure rural schools and community self-determination program.
Sec. 602: Transfer to abandoned mine reclamation fund.
Sec. 702: Temporary tax relief for areas damaged by 2008 Midwestern severe storms, tornados and flooding.
Sec. 704: Temporary tax-exempt bond financing and low-income housing tax relief for areas.
Sec. 709: Waiver of certain mortgage revenue bond requirements following federally declared disasters.
Sec. 710: Special depreciation allowance for qualified disaster property.
Sec. 711: Increased expensing for qualified disaster assistance property.

Seriously, did they think no one was going to read this thing? “Increase in limit on cover over of rum excise tax to Puerto Rico and the Virgin Islands”? “Seven-year cost recovery period for motorsports racing track facility”? “Extension and modification of duty suspension on wool products; wool research fund; wool duty refunds”?

It’s one thing to drown a piece of legislation with pork. But the urgency laid on thick by the administration and Sen. Gregg over the last two days all but guaranteed even armchair economists like yours truly would be reading this thing line by line.

C’mon, fellas. Couldn’t you be a little more discreet? Guess you just couldn’t help yourselves.

constitutionalist said...

Oct. 4-

It was very refreshing to have both Rep. Matheson and Rep. Bishop vote "No" on the giveaway of taxpayer funds.

Hatch, Bennett and Cannon have no integrity or backbone to do what is right - EVER!

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