Friday, October 03, 2008

Bailout bill bonuses

The bailout bill has a few extra features:
* Sec. 105. Energy credit for geothermal heat pump systems.
* Sec. 111. Expansion and modification of advanced coal project investment credit.
* Sec. 113. Temporary increase in coal excise tax; funding of Black Lung Disability Trust Fund.
* Sec. 115. Tax credit for carbon dioxide sequestration.
* Sec. 205. Credit for new qualified plug-in electric drive motor vehicles.
* Sec. 405. Increase and extension of Oil Spill Liability Trust Fund tax.
* Sec. 309. Extension of economic development credit for American Samoa.
* Sec. 317. Seven-year cost recovery period for motorsports racing track facility.
* Sec. 501. $8,500 income threshold used to calculate refundable portion of child tax credit.
* Sec. 503 Exemption from excise tax for certain wooden arrows designed for use by children.
It also includes tax credits for solar and wind power, a requirement that health insurance companies cover mental health the same way they cover physical health (so look for some huge premium increases on your health insurance).

And during all the bailout bill discussion, Congress quietly authorized another $612 billion defense authorization bill.

(Via The Agitator.)


Ktisophilos said...

This is a good thing? The stockmarket didn't suggest so.

Jim Lippard said...

If you thought I was suggesting it was a good thing, you've misunderstood me.

I think the fact that about 20% of the bailout bill was completely unrelated pork is appalling.

workingsmart said...

At the same time, it is a silver lining that, indirectly, may help us get out of the financial disaster by encouraging energy independence... I'd expect this pork to start having a positive effect on the economy in around three to five years. Depending on how long it takes for our renewable infrastructure to take hold, this could allow us to be a less warlike, energy independent nation in 15 years.
So, in the meantime, as the country goes bankrupt and begins to follow the path to the post-apocalyptic Atlas Shrugged distopia, we should stock up on guns and canned goods and bury our gold.

Ktisophilos said...

Thanx for clarifying. Yes, 20% pork is a disgrace. All who voted for it deserve to lose their seats.

Brad said...

Where did the money go in the first place? At some point someone had to stick a wad of cash in their back pocket and haul ass to the Poconos.

Jim Lippard said...

Part of what we're seeing is sheer destruction of money as monetary deflation occurs.

The banks only keep a fraction of deposits on reserve, the rest they loan out. Those loans are going bad, as are the credit default swaps used to insure the loans against default.

Part of the answer of where the money went is into land and houses that are now sitting vacant. Part of it is salaries, bonuses, and commissions of people in the real estate, mortgage, and financial industries. Part of it is cars, motorcycles, boats, granite countertops, and restaurant bills of people who used their homes as ATMs.