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Motorsports Racetrack Property Aid? Puerto Rico Rum Taxes? In the Economic Rescue Bill?
October 02, 2008 12:22 PM
The Senate Finance Committee has published a summary of some of the additions to the Emergency Economic Stabilization Act.
There are many provisions in the bill that will directly benefit millions of Americans -- what's called the "AMT patch," for instance, which will protect 20 million middle class Americans from seeing a tax increase in 2009.
Or tax deductions for tuition, and for teacher expenses.
Corporations will see extensions of popular tax cuts -- for research and development, or renewable energies.
But there's also some other stuff.
My colleague Z. Bryon Wolf points out that it bears mentioning that all of the following provisions were in the "tax extender" package the Senate (and the House) had already voted on, but were arguing over whether or not to "pay for."
But what's in here also bears mentioning:
* Rum Excise Taxes to Puerto Rico and the Virgin Islands -- Cost: $192 million over 10 years
Current law imposes a $13.50 per proof gallon excise tax on distilled spirits produced in or imported into the United States -- of which $13.25 per proof gallon was made as a payment to Puerto Rico and the Virgin Islands until the end of 2007, after which it was lowered to $10.50 per proof gallon. This retroactively extends that provision from Dec. 31, 2007, through the end of 2009.
* American Samoa Economic Development Credit -- Cost: $33 million over 10 years
Certain domestic corporations operating in American Samoa were eligible for a possessions tax credit, which offsets their U.S. tax liability on income earned in American Samoa from active business operations, sales of assets used in a business, or certain investments in American Samoa. The tax credit expired on Dec. 31, 2007. This retroactively restores it and extends it until the end of 2009.
* Extend and Expand 50% Tax Credit for Certain Expenditures for Maintaining Railroad Tracks -- Cost: $331 million over ten years
Restores to certain railroads a tax credit equal to 50% of gross expenditures for maintaining railroad tracks that they own or lease.
* 7-Year Recovery Period for Certain Motorsports Racetrack Property -- Cost: $100 million over 10 years
Extends a special 7-year cost recovery period or property used for land improvement and support facilities at motorsports entertainment complexes.
* The Wool Trust Fund -- Cost: $148 million over ten years
Extends a provision that reduces import duties on a limited quantity of imported wool fabrics and places duties otherwise collected on the import of certain wool products into the Wool Trust Fund, which promotes the competitiveness of American wool.
* Special Expensing Rules for Certain Film and Television Productions -- Cost: $81 million over 10 years
Under current law, a producer can elect to take a single-year deduction of up to $15 million in production costs incurred in the U.S. If the production costs are over $15 million, this deduction does not apply. The maximum deduction is increased to $20 million if the costs are significantly incurred in economically depressed areas. No other depreciation or amortization is allowed for a production for which this deduction is taken. The provision expires Dec. 31, 2008. The proposal would extend the provision to the end of 2009.
* Provisions Related to Film and Television Productions -- Cost: $397 million over ten years
Under current law, many film and television show production companies are unable to take advantage of the domestic production deduction. The proposal allows more film and television show production companies to use the domestic production deduction, which will encourage more production of films and television productions.
* Excise Tax Exemption for Wooden Practice Arrows Used by Children -- Cost: $2 million over 10 years
Current law imposes an excise tax of 39 cents, adjusted for inflation, on the first sale by the manufacturer, producer, or importer of any shaft of a type used to produce certain types of arrows. This proposal would exempt from the excise tax any shaft consisting of all natural wood with no laminations or artificial means to enhance the spine of the shaft used in the manufacture of an arrow that measures 5/16 of an inch or less and is unsuited for use with a bow with a peak draw weight of 30 pounds or more.
* Income Averaging for Exxon Valdez Litigation Amounts -- Cost: $49 million over 10 years
Allowing commercial fishermen and other individuals whose livelihoods were negatively impacted by the 1989 Exxon Valdez oil spill to average any settlement or judgment-related income that they receive in connection with pending litigation in the federal courts over three years for federal tax purposes. The bill would also allow these individuals to use these funds to make contributions to retirement accounts.
The Senate Finance Committee issued a statement saying that these are not "'earmarks.' According to the Honest Leadership and Open Government Act of 2007, a tax earmark or limited tax benefit means any revenue provision that (A) provides a Federal tax deduction, credit, exclusion, or preference to a particular beneficiary or limited group of beneficiaries under the Internal Revenue Code of 1986; and (B) contains eligibility criteria that are not uniform in application with respect to potential beneficiaries of such provision."
- jpt
October 2, 2008 | Permalink | Share | User Comments (289)
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Bryon Wolf Wrote how is next Bryon Wolf this is getting sisking Bryon Wolf Following 'round-the-clock weekend negotiations, the federal government late on Sunday agreed to bail out yet another bank, this time giving the troubled Citigroup a $20 billion lifeline in the form of a direct investment and guaranteeing $306 billion worth of its shaky assets, the Wall Street Journal, New York Times, Financial Times, and others lead off their business coverage today.
Posted by: Bryon Wolf | Nov 24, 2008 1:13:48 PM
Bryon Wolf wrote Obma in office means Bryon Wolf all other offices will be empty. Bryon But rest assured you will be able to get a job at your favorit fast food restraunt
Posted by: Bryon Wolf | Nov 7, 2008 2:10:41 PM
Somewhere I heard the definition of "Stupid" : Doing the same thing over and over again and expecting a different result --- does this ring a bell with anyone besides me???
Posted by: nora schick | Oct 5, 2008 3:31:24 PM
Sheese this Country is in such deep trouble fiancially then why is our government spending money on such foolishness.
Posted by: Hillarysmygirl08 | Oct 3, 2008 11:49:14 PM
I wonder if this "bailout" will pay for my car, bike, etc... Maybe, I should just stay home and collect "bailout" help because my job is too stressful. Or maybe, I just need a "bailout" fully paid vacation. When my credit card company calls asking to be paid should I just say, "bailout"? It's funny that they used the word "bailout", considering that this is criminal. God bless america, I hope He bails us out soon.
Posted by: jpmari | Oct 3, 2008 10:49:27 PM
While I was reading the Act text and came across this. I was so upset I started looking for more info on the web about who else saw this and was talking about it. I came across this site.
Who put these things in there? How do we bring more visibility into these types of issues and get the message across that this will no longer be acceptable?
It's crazy.
Posted by: Can't believe it... | Oct 3, 2008 9:52:00 PM
Way to go Jake. This is why I as a lifelong Democrat have left the party and become an Independent. I will never vote PARTY AGAIN. Palin is the only EARNEST politician, she is the maverick of corruption, she exceeds McCain.
Palin 2012
Posted by: bpower | Oct 3, 2008 5:11:03 PM
"We should nationalize 50% of the rich people assets. The money that we got should be enough to bailout all homeowners, national debt, and wall street."
Simon I really hope you are Joking with what you just said. If you really believe that,maybe you should move to Venezuela, you will be right at home.
Posted by: Aden | Oct 2, 2008 11:08:51 PM
Doesn't anybody remember Ross Perot warning us about the Giant Sucking sound of all your jobs leaving the USA down to Mexico as the Goverment pushed NAFTA (North American Free Trade Agreement). He was right! We soon saw all the manufacturing jobs leave the USA and go to Mexico and overseas. Your Goverment told you that they would replace all those jobs with "Service Sector Jobs". Basically Insurance, Banking and Technology. Then those Companies started Off Shoring all the Jobs to India, China and Asia! When your Goverment complained the companies said they could not find skilled American workers! The Goverment created a H1B Visa program that allowed them to bring in even lower paid workers (slaves,,,work or your deported) to replace even more American workers. When the consumers started to hurt they said " We will give them MORE CREDIT" and America went into debt. When Wall Street and the banks finally recognized they could take no more from America they lobbied Congress to change the Bankruptcy laws and your elected "REPRESENTATIVES" did just that to keep you on the hook paying the MASTERS. Now that they cannot take anymore $$$$$'s from you they ask the GOVERMENT to take it with a 850 BILLION DOLLAR bail out to them!!!! FOOLS.....NO BAIL OUT
Posted by: overpaid ceo | Oct 2, 2008 10:52:53 PM
Each and every congressman supporting the bailout of legalized crooks should be voted out in November. (Rescue, my a..) They do not represent the people who put them into office. Why don't they add this on the ballot in November and let the American taxpayers vote on it?
Posted by: Vonzy | Oct 2, 2008 10:03:50 PM
They are calling this a rescue but are adding so much stuff to it. This is ridiculous. They need to sit down with economists and other great leaders to figure out a real, long-lasting solution.
We've already given billions to AIG, Fannie/Freddie, etc. and the problems are still there. This will be $700 billion down the tubes.
Call your Congress member, tell them to vote NO.
Posted by: Joseph | Oct 2, 2008 9:58:34 PM
"The cry from Bush "We gotta pass this quick!!" is how we got into Iraq. Is Congress going to fall for it again?"
-----
They fell for it on the Patriot Act, didn't they? And except FOR the Patriot Act, more people might be posting.
Ralph Nader is scheduled to be on CNN sometime REALLY early tomorrow morning, around 8 Eastern. Guess we should vote for him, since he's the most powerful third-party candidate, is very knowledgeable in economics and corporate hanky-panky, and -- unlike Obama OR McCain -- has never wavered for decades.
The most infuriating thing about the Congress is Pelosi/Hoyer's saying they won't MEET until they know they can PASS the Bush/Paulson bailout. (PLUS the intentionally-opaque special-interest items/"earmarks.)
The people are entitled to hear the debate, and to know who votes HOW. And, in the case of those who vote FOR the bailout, WHY they dare to vote that way.
Posted by: Belle Starr | Oct 2, 2008 9:28:23 PM
When did we start privatizing gains and nationalizing losses. This is ridiculous. Take 1 minute and tell Congress find a real solution and to Vote NO on this
Posted by: Mark | Oct 2, 2008 9:15:33 PM
-----Simon's Rescue Plan---
We should nationalize 50% of the rich people assets. The money that we got should be enough to bailout all homeowners, national debt, and wall street.
The rest of the money from the nationalization should be also enough to give every one of the American citizens a nice car as a Christmas gift.
Posted by: simon | Oct 2, 2008 9:03:41 PM
The federal reserve has already pumped a TRILLION DOLLARS into the banking system. Why do we need more?
The cry from Bush "We gotta pass this quick!!" is how we got into Iraq. Is Congress going to fall for it again?
The politicians see a way to rob We The People again. Free money hand outs to thier cronnies.
Is anyone in congress listening???
WE THE PEOPLE DO NOT WANT THIS !!!
Posted by: Double D | Oct 2, 2008 9:01:57 PM
Here's the best bailout program around. Pay off everybody's Mortgage, up to 400K. For those that have already paid their mortgage, give them 100K. For those that rent, give them 50K. Now everybody has money to spend and fuel the economy. We can pay it back over 30 years at a flat fee so that they make a 30K profit over the life of the loan...30 years, and prorated for lower years.
Posted by: Jake | Oct 2, 2008 8:58:52 PM
How do you like that! I keep getting flagged for trying to put links on here now. I guess ABC doesn't want much of the TRUTH out there.
Posted by: Vagent | Oct 2, 2008 8:46:19 PM
* The Wool Trust Fund -- Cost: $148 million over ten years
Is that Wool or Bull ?
Posted by: fool me once | Oct 2, 2008 8:40:35 PM
I suspect that Obama and McCain may have striken a deal, such that they vote on the same page on the $850 Senate revised TARP bail out bill. This bill is so huge and they do not want to take side and risk their popularity. Once again, when a politician personal interest is involved, he/she will not care about the constituents.
Posted by: Sutter197 | Oct 2, 2008 8:35:51 PM
I simply cannot believe they voted for this after adding to the sum. As if the origninal proposal wasn't bad enough.
This is BOTH parties at work.
Posted by: Mary | Oct 2, 2008 8:28:43 PM
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