Bailout Bill: The Latest Christmas Tree
Jul 31, 202059.2K Shares3.9M Views
Last week, as White House officials were making the roundson Capitol Hill to sell their $700 billion Wall Street bailout plan, Sen. Chuck Schumer (D-N.Y.), a member of the Senate banking committee, made a vow: “We will not Christmas-tree this bill with extraneous amendments.”
Right.
Last night, the Senate passed a modified version of the administration’s bailout, but not before they loaded it upwith every bit of tinsel they could feasibly toss on.
This includes: billions in renewable fuel tax credits; billions in relief for families who would otherwise have to pay the alternative minimum tax next April; a tax credit for companies that promote bike commuting; a provision expanding insurance coverage for mental health services, and the list goes on. (Indeed, the original bailout bill was three pages long; the latest version is 451.)
Not that these things are necessarily bad policy steps — but of the $150 billion in new tax breaks, only $40 billion are offset (ie, this adds $110 billion to the country’s debt).
Those tax breaks are not a bad ploy for getting reluctant House Republicans on board. They, after all, were largely the reason a similar bill failedthe lower chamber on Monday.
But it makes ridiculous those claims that the $56 billion House stimulus bill (think: Medicaid, food stamps, infrastructure and unemployment insurance) was a non-starterbecause, as the White House said in threatening a veto, it was too expensive.
Who said trickle-down economics died with Ronald Reagan?
Camilo Wood
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Camilo Wood has over two decades of experience as a writer and journalist, specializing in finance and economics. With a degree in Economics and a background in financial research and analysis, Camilo brings a wealth of knowledge and expertise to his writing.
Throughout his career, Camilo has contributed to numerous publications, covering a wide range of topics such as global economic trends, investment strategies, and market analysis. His articles are recognized for their insightful analysis and clear explanations, making complex financial concepts accessible to readers.
Camilo's experience includes working in roles related to financial reporting, analysis, and commentary, allowing him to provide readers with accurate and trustworthy information. His dedication to journalistic integrity and commitment to delivering high-quality content make him a trusted voice in the fields of finance and journalism.
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