Billions in earmarks

[Christina]

Billions in earmarks in Senate's bailout billZachary Coile, Chronicle Washington BureauFriday, October 3, 2008 (10-03) 04:00 PDT Washington - -- While crafting a bill intended to rescue the U.S. economy this week, lawmakers couldn't stop themselves from adding billions of dollars in tax breaks that have little to do with restoring confidence in financial markets.Senators quietly tucked a number of earmarks into the tax package of the 451-page bill that was passed Wednesday night and is expected to be put to a vote in the House today: a $2 million tax benefit for makers of wooden arrows for children; a $100 million tax break to benefit auto racetrack owners; $192 million in rebates on excise taxes for the Puerto Rican and Virgin Islands rum industry; $148 million in tax relief for U.S. wool fabric producers; and a $49 million tax benefit for fishermen and other plaintiffs who sued over the 1989 tanker Exxon Valdez spill.Many of the tax breaks were put in place years ago and were set to expire. But their inclusion is complicating efforts in the House to pass an economic rescue plan; an earlier attempt failed Monday. Several House Republicans railed on Thursday against the pork-packed bailout bill."One thing we didn't appreciate in the Senate's action was that they decided that this bill should become Christmas in October," said Steven LaTourette, R-Ohio. "We just don't think (the earmarks) should be in this piece of legislation."The tax earmarks were scarcely noticed during the Senate debate over a bill that featured a $700 billion bailout package and a $112 billion tax package, including the renewal of popular tax breaks for businesses and renewable energy projects and a one-year effort to shield at least 20 million Americans from paying the alternative minimum tax.Broad supportThe bill was approved easily, 74-25, winning support even from lawmakers who have crusaded against earmarks - including Arizona Sen. John McCain, the Republican Party's presidential nominee, who warned last week that he might oppose a bailout bill if it included more pork-barrel spending."It is completely unacceptable for any kind of earmarks to be included in this bill," he said in a speech in Freeland, Mich. "It would be outrageous for legislators and lobbyists to pack this rescue plan with taxpayer money for favored companies. This simply cannot happen."On MSNBC's "Morning Joe" program Thursday, McCain was pressed on why he voted for a plan that included earmarks that he strongly opposed. He said he had to support the bill because the country is "on the brink of economic disaster.""There were plenty of other bills that I fought against, voted against" because of pork, McCain said.The tax earmarks were championed by both sides of the aisle. Western lawmakers, especially Sens. Ron Wyden, D-Ore., and Larry Craig, R-Idaho, backed an expansion of a program that helps pay for rural schools. Lawmakers from states with no income tax backed an extension of a program that allows residents in states including Texas, Nevada, Florida, Washington and Wyoming to deduct the sales tax they pay over a year from their federal taxes, a provision that costs the Treasury $3.3 billion over two years.Benefit for film producersEven Hollywood got something out of the Senate bill: renewal of a tax incentive worth nearly $48 million a year for film and TV producers who produce their work in the United States.The earmarks are not exactly new. They were passed by the Senate on Sept. 23 on a 92-3 vote (McCain and his Democratic rival, Barack Obama, were absent) for a tax package costing more than $100 billion. House Democratic leaders opposed the Senate's tax plan because it wasn't fully paid for and will add to the federal deficit.Steve Ellis, vice president of Taxpayers for Common Sense, the congressional watchdog group that tracked the earmarks in the bill, said Senate leaders had two main objectives in strapping the tax package to the financial bailout plan."One is they're hoping this will turn a few votes, that people who support some of these provisions will forget about the $700 billion and concerns they may have on that, and say, 'If you give me a few million in tax breaks for my constituents, I'll go along,' " Ellis said. "The second reason is that this is your standard, run-of-the-mill, end-of-year politics. You take a piece of must-pass legislation, you cram whatever you want in there and you dare the House to oppose it. It's really a pretty cynical maneuver."The tactic might have helped pass the plan in the Senate, but it's making life tougher for House leaders. The House narrowly defeated the bailout plan 228-205 Monday, and lawmakers now must flip at least 12 votes to change the outcome.House Blue Dogs are complaining about the costs of the tax package. Republicans are unhappy at what they see as an attempt to sneak pork into the bill. Rep. David Hobson, R-Ohio, voted for the bill but said he's now undecided. "I hope other people who voted yes may be reconsidering where they are when they get the outrage of the pork barrel projects," he said.Measured optimismBut leaders of both parties said Thursday they are cautiously optimistic the measure will pass. Several lawmakers indicated they were ready to switch from "no" to "yes" votes, including Republican Reps. Ileana Ros-Lehtinen of Florida and Zach Wamp of Tennessee. Rep. Roy Blunt, R-Mo., the GOP's top vote-counter, predicted the measure would pass.House Speaker Nancy Pelosi said she won't put the financial rescue bill on the floor unless it's clear it will pass, hoping to avoid a repeat of Monday's embarrassment, when the bill failed a day after party leaders had announced a deal.But she added, "I'm optimistic that we will take a bill to the floor."Tax breaks in bailout bill The financial rescue measure passed by the Senate on Wednesday included a series of tax incentives benefiting specific industries or states.Wooden arrows: This tax break, backed by Oregon's two senators, would benefit an Oregon manufacturer of wooden arrows for children by $2 million over 10 years.Racetracks: Earmark would allow auto racetrack owners to depreciate their facilities over seven years, saving the industry $100 million over two years.Rum: Offers rum producers in Puerto Rico and the Virgin Islands a rebate on excise taxes worth $192 million over two years.Wool: Reduces tariffs for U.S. makers of wool fabric that use imported yarn, worth $148 million over five years. The measure was pushed by Reps. Louise Slaughter, D-N.Y., and Melissa Bean, D-Ill.Exxon Valdez: Plaintiffs in the suit over the 1989 oil spill could spread their tax payments on punitive damages over three years, cutting their tax bill by $49 million. The measure was backed by Rep. Don Young, R-Alaska.American Samoa: Allows certain corporations to reduce their tax liability on income earned in American Samoa, at a cost of $33 million over two years.Hollywood: Extends a tax break for film and TV companies that keep their production in the United States, worth $478 million over 10 years. The provision was originally pushed by Rep. Diane Watson, D-Los Angeles.

 

[Follower]

The $700 Billion Bill has become the $850 Billion Bill as lawmakers heap their contempt of the American people up. They added a lot of pork and special-interest benefits, but they added nothing to keep this from happening again. How can they, when government buying of high-risk loans is what caused this mess in the first place?

 

[Christina]

Agreed follower they say this was so important the entire econmoy of the U.S. depended on this bill yet our so called leaders were so concernd they had to be bribed by stupid ear marks rather than write a good bill. They sold us out for a bribes of Wooden Arrows, and Racetracks

 

[blessed1195]

This bill is a travesty! With the passing of this bill, our government is now in the real estate business. As the Dems have always wanted, we are becoming a socialist government. We have to stop them on Election Day. President Bush, the free market and the lack of regulation are being blamed by the devious Democrats, yet the people that are truly responsible, are walking away scott free. It was President Bush, in 2001 and 2003, along with John McCain that urged regulation for Fannie Mae and Freddie Mac and each time the Democrats voted no. This was their open money pit for campaign contributions and a place to employ their loyal friends.And they knew their Propaganda machines in the American press would never report the truth. Please keep your eyes wide open and Do not believe any of their lies!!!!This truly is a flood of lies coming from the Democrata and the mainstream media. We, as Americans, need to push for hearings into the downfall of these GSE's. I am positive we will find Barney Frank, Chris Dodd and Chuck Schumer(all Democrats) at the center of this mess and they are the ones pushing for this temporary fix of our economy. What a joke!Other details of the pork that were left out was 1)giving bankruptcy judges the power to lower interest or PRINCIPAL in mortgages to keep people in houses they can't afford.Also 2)there is a line in the bill that insurance companies must now cover Mental Health. Do you know how expensive this will be to all of our insurance companies and passed on to the average American? These devious Democrats, led by Senator Harry Reid and of course; the miraculous OBAMA-the Socialist Party( oops, I meant Democrat party) Presidential nominee, have pushed through pork disguised by an economic crisis they caused and they will never be made to answer to the American People for their corruption. If they don't repent, I know who they will have to answer to in the future. Thanks be to GOD!

 

[Jordan]

This is not going to be good at all. Government expects us to pay... Nobody will be able to pay that off... now, more than ever, people should rely on God. It's sickening really for people to rely on this bill.

 

[tim_from_pa]

(blessed1195;60023)
This bill is a travesty! With the passing of this bill, our government is now in the real estate business. As the Dems have always wanted, we are becoming a socialist government. We have to stop them on Election Day. President Bush, the free market and the lack of regulation are being blamed by the devious Democrats, yet the people that are truly responsible, are walking away scott free. It was President Bush, in 2001 and 2003, along with John McCain that urged regulation for Fannie Mae and Freddie Mac and each time the Democrats voted no. This was their open money pit for campaign contributions and a place to employ their loyal friends.And they knew their Propaganda machines in the American press would never report the truth. Please keep your eyes wide open and Do not believe any of their lies!!!!This truly is a flood of lies coming from the Democrata and the mainstream media. We, as Americans, need to push for hearings into the downfall of these GSE's. I am positive we will find Barney Frank, Chris Dodd and Chuck Schumer(all Democrats) at the center of this mess and they are the ones pushing for this temporary fix of our economy. What a joke!Other details of the pork that were left out was 1)giving bankruptcy judges the power to lower interest or PRINCIPAL in mortgages to keep people in houses they can't afford.Also 2)there is a line in the bill that insurance companies must now cover Mental Health. Do you know how expensive this will be to all of our insurance companies and passed on to the average American? These devious Democrats, led by Senator Harry Reid and of course; the miraculous OBAMA-the Socialist Party( oops, I meant Democrat party) Presidential nominee, have pushed through pork disguised by an economic crisis they caused and they will never be made to answer to the American People for their corruption. If they don't repent, I know who they will have to answer to in the future. Thanks be to GOD!
It's funny that you should mention about the government getting into real estate. I said this the other day in another post to Kriss (Christina) that I did not like too much government getting into anything. It reminds me of the story of Joseph during famine where the people only had themselves to sell, and their government infiltrated everything they had. In our case, it could lead to socialism (and that was the word I used as well).However, many people in this generation don't know that story in the bible because one has to probably be a "right wing evangelical radical" to read it in their eyes. Then in the next generation they will wonder why no one else sounded the alarm when it was right under our noses.