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Bailout Bill Language, Senate Version

2 pages, 451 pages; what's the difference?

By: Jeff Emanuel (Diary)  |  October 1st, 2008 at 11:37 AM  | 

RESIZE: AAA

Update-10/1@1500CDT: A Senate contact just emailed to correct my use of the term “tax earmarks” to describe the tax extenders in the Senate legislation.

Brian Johnson of Americans for Tax Reform has a good post below explaining why that term is a misnomer, saying in part:

Calling tax cuts “earmarks” is very unhelpful and completely wrong from a fiscal conservative perspective.

There is no such thing as a “tax earmark.” Earmarks are spending. There are appropriations earmarks. There are authorization earmarks. There are no “tax earmarks.”

To claim that there are puts tax deductions and credits (which is what we’re talking about here) on the same par as bridges to nowhere. Was the creation of HSAs a “tax earmark?” How about the home mortgage interest deduction?

One might call for lowering the rates and broadening the base, but we should not fall into the trap of equating tax cuts and spending increases. That’s how some Senate Republicans got in such massive trouble over health care last year and energy this year vis-à-vis taxes.

I’ve corrected the headers below to reflect the status of these tax breaks as such. Further, though the bill did grow by 250% between inception and the Senate producing a final version, the majority of that bulk comes from its being the combination of the Senate-approved tax extender bill mentioned below and the Wellstone mental health bill passed by the House in March.

* * *

The Senate version of the bailout legislation can be seen here. Warning: it’s a 451-page pdf file, so it might take a minute to load.

That’s right: 451 pages. The original Paulson plan was just over a page and a half. The House version was just over 100 pages.

Now, the Senate has loaded the bill up with so many sweeteners for representatives on both sides of the aisle that this “emergency economic rescue” legislation is now two hundred times its original length, weighs in at almost five pounds, and contains earmarks that seem, to be generous, not the most germane to the economic crisis it is purportedly being pushed to immediately address.

A few examples of those earmarks:

New tax breaks earmarks in Bailout bill

  • Film and Television Productions (Up to $15,000,000.00; Sec. 502)
  • Wooden Arrows designed for use by children (Sec. 503)
  • 6 page package of earmarks for litigants in the 1989 Exxon Valdez incident, Alaska (Sec. 504)


Tax break earmark “extenders” in the bailout bill

  • Virgin Island and Puerto Rican Rum (Section 308)
  • American Samoa (Sec. 309)
  • Mine Rescue Teams (Sec. 310)
  • Mine Safety Equipment (Sec. 311)
  • Domestic Production Activities in Puerto Rico (Sec. 312)
  • Indian Tribes (Sec. 314, 315)
  • Railroads (Sec. 316)
  • Auto Racing Tracks (317)
  • District of Columbia (Sec. 322)
  • Wool Research (Sec. 325)

Yes, you read that last one correctly: Wool research. That particular earmark, in what is purportedly a must-pass, economy-saving bill, also caught the attention of NRO’s Mark Steyn, who wrote:

When this thing first came up, a lot of us felt like the Mister Average Joe guy at the start of a conspiracy thriller who gets a call saying the place is gonna blow, you got 30 seconds to get outta there, jump out the rear window, and get into the unmarked car with the fellows in reflector shades.

“Whu..? Why? Er, lemme think…”

“Clock’s ticking, pal.”

Now it turns out the once-in-a-lifetime save-the-global-economy emergency-measure has got time for all the business as usual. Well, which is it? I’m willing to be persuaded of the merits of a bill for “wool research”, or the merits of a billion-trillion-gazillion-dollar bill to save the planet from economic meltdown. But the same piece of legislation cannot plausibly contain both. …

If this is an emergency, hold the wool research. If it’s an emergency that’s got time for wool research, let’s chew it over for another few months.

Leave it to the Senate to take a two-page proposal and multiply its length by 250 times by adding pork and other financial sweeteners to make it both more palatable to a larger group of members, and more expensive than its original exorbitant price tag.

I’ve mentioned to some friends recently that I’m getting full-volume, full throated opposition to this bailout – from subject matter experts – screamed into one of my ears, while defense of it due to “extreme need” – also from unimpeachable experts – is being piped into my other ear at equal volume.

Personally, I’m not convinced in the least that this is absolutely necessary; however, I’m also not 100% opposed at this point. A cop-out? Sure, call it that. Either, way, I’m just sticking to reporting on this one. The analysis is up to you.

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COMMENTS

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  • kowalski

    I’ll see all you guys in a few years, I hope. They’ve just guaranteed it won’t pass.

  • California_Yankee

    I’m sure something must be done. But I will not support an emergency measure that is chock full of irresponsible pork.

  • Adelthemystic

    If he is truly a champion of earmark reform, he needs to bite the bullet and vote no on this bill if it contains so many earmarks.

    Then he needs to make good on his promise to “make them famous” and get his face on tv and name names and where the earmarks are going.

  • izoneguy

    The haves will be able to take care of themselves (For awhile). The have nots will be killing each other (Like they have not been doing that already) Get ready for a dark, dark time. The US government will be bankrupt. Get ready for massive shortages of power, water, food you name it. Without Americans buying all the Chinese crap they will have even a harder time. Nukes will get sold to the highest bidder. Game, Set and Match.
    See you on the other side.

  • Steven_Willis

    I supported the original bill.

    This is not worth it.

    Let’s fix the mark-to-market rules immediately. Properly stated, most banks’ balance sheets should be fine.

    Let the market handle the rest and then point the blame where it belongs: squarely on the Democrats. If we cannot do that, we deserve to lose.

  • Xraxnd_Caracarn

    Is going to be watching johnny try to spin this as a good bill.

  • Achance

    I’m not the least bit convinced that this crisis isn’t a contrivance of a bunch of Wall Street types who 1) support BHO, and 2) see an opportunity to once again fleece the rubes and make themselves richer. That said,

    this bill is why we simply need some first class funerals in this Country. If we really have a crisis and we really need federal intervention, we DON’T need a larded up bill. Since they feel the need or opportunity to lard it up, I’m more convinced than ever that this is just an election-year contrivance.

    And finally, IF John McCain is now a born-again agent of change in Washington, I’d like to hear him very loudly and stridently denouce this bill.

    • izoneguy

      It’s class warfare in all it’s glory. Once the country is bankrupt and the welfare checks stop then it’s full scale burn down the city riots. That will be the one hundred year chance to fix the problem once and for good.

  • Republican_Michigander

    This thing must change or get defeated.

    Now, before panicking, remember that this is a DRAFT and NOT the final bill. This is being considered. A better, or worse bill could pass the senate. We need to do our best to make sure this fails.

    I skimmed the bill since I don’t have time to in depth read 400 pages. So far I don’t like:
    - Massive power to the sec of treasury. (Paulson’s bill from before)
    - Does not reform the problems. Bandaid. Subprime still here. No drilling.
    - Debt limit – $12 TRILLION?
    - INCREASE in Coal tax.
    - Ethanol
    - “Energy bonds”
    - Carbon credits
    - Carbon Dioxide treated as income? WTF?
    - Most of the bill is unrelated to fixing the problem of energy COSTS, Mortgages, and debt.
    - Reduction of deductions due to domestic drilling (Tax increase)
    - Increase in oil tax per barrell.

    That’s just what I saw already in 20 minutes. This bill is unacceptable, and why we ALWAYS need to watch to see what crap Congress springs on us in what is deemed an emergency situation. Emergencies is how we were stuck with the Patriot Act, the MBT tax, and the department of homeland security. It will be how we get something as bad or worse than this draft if we don’t call our congresscritters and presidential candidates.

  • Southpaw75

    his campaign is officially OVER

  • Herodotus

    How is this idea Constituional? I thought the House had to start any bill like this.

    • Jeff_Emanuel

      that passed in March, and adding in the earmarks and bailout language. So, the legislation did originate in the House….technically.

      More on that here.

      • Vegas_Rick

        n/t

  • speciallist

    Bring the Pain…soon

  • SeanH90050

    Count me out on this bill. I’ve been in the “do something” group all along, but this? This is worse than Nancy tanking the vote the other day. I knew it would likely come through full of Christmas Tree junk, but like this? I never fathomed this much. How can the Senate GOP look at this and say it’s good?

  • stang

    We have a kleptoctracy not a democracy.

    The world’s greatest deliberative body has proved it is nothing more than a morally depraved collection of agents for looters and parasites, willing to steal the jewelry off the dying corpse of the American taxpayer with this bill.

  • Strelnikov

    I have been writing at various diaries about how this “crisis” is contrived and being manipulated, and now the best proof of all is this bill: a 450-page slab of bacon, pork chops, and tenderloin sliders.

    I do not see how Boehner and the true Conservatives in the House could vote for this: and how will McCain be able to handle it without spinning away a good portion of the base?

    If he waves it around at a press conference and then stomps on it in contempt, he will win the election.

    If he prattles on about compromise and bipartisanship and accepting a bitter pill, bow down to Big Brobama!

    • Vegas_Rick

      He rails against earmarks and big spending. He’s going fight the porker barrel spenders.

      Well, the fight MUST start NOW.

  • obhaven

    If you Cant Make It, Now It Seems You Can Fake It! I have been in the real estate business for over 30 years! Many Many colleagues have told me about their “secrets” to close the deal in order to make the standard 6 percent commission! Using fake documentation for someone that couldn’t qualify under a “normal” loan WAS ENCOURAGED! With Websites like www.FAKEPAYCHECKSTUBS.com out there, it seems like the “hungry” real estate professional used it’s services to defraud the Lender and “help” the loan through the pipeline! SIC When is big print going to write about real estates dirty little secret?

    • WOSG

      “I supported the original bill.
      This is not worth it.

      Let’s fix the mark-to-market rules immediately. Properly stated, most banks’ balance sheets should be fine.

      Let the market handle the rest and then point the blame where it belongs: squarely on the Democrats. If we cannot do that, we deserve to lose.”

      My sentiments exactly.

      I hope McConnell and McCain are smart and realize that the “something” that needs to be done is:
      - a “workout not a bailout”
      - pro-growth economic policies (it’s the expiration of the Bush tax cuts that are driving us into recession!)
      - no more christmas tree BS bills with earmarks and pork
      - fix the root of the problems: Fannie mae’s subprime lending and over-indulgent Fed that created the bubble in the first place

  • obhaven

    If you Cant Make It, Now It Seems You Can Fake It! I have been in the real estate business for over 30 years! Many Many colleagues have told me about their “secrets” to close the deal in order to make the standard 6 percent commission! Using fake documentation for someone that couldn’t qualify under a “normal” loan WAS ENCOURAGED! With Websites like www FAKEPAYCHECKSTUBS com out there, it seems like the “hungry” real estate professional used it’s services to defraud the Lender and “help” the loan through the pipeline! SIC When is big print going to write about real estates dirty little secret?

    • Herodotus

      .

  • ocleverone

    It is hard to convince the American people the economy is in dire straits and it is going to cause catastrophic events not seen since the Great Depression when non essentials are added to the bill.

    The message, to me, is loud and clear. You suffer but we will continue our special interest at your expense.

    I cannot support a bill, who everyone saying is so crucial, that has even one line of non-esstential spending in it.

    • speciallist

      n/p

      • ocleverone

        It’s time to start naming names.

        • SeanH90050

          Name names Senator McCain. I know you want to be bipartisan, but you must vote against this hunk of a pig’s backside.

          The media will attack you for voting against the bill after claiming to want a bipartisan agreement that will, in all likelihood pass anyway. They’ll say you left the trail to find a solution, and when one passed you turned on it.

          But if you are the straight talking maverick, you will do it. You will move the spotlight over to the people who wanted this hunk of junk, and created the problems (Fannie and Freddie) in the first place. You will force the media to address it because you know the citizens are tired of corruption too.

          SWING AT THIS PITCH!

  • StephC

    Nobody listens to me, anyway. Here’s what I had to say about this in an email to a friend:

    This is Frankenstein. We the people are creating this monster (the government) and too many still think we control it because we created it. The monster asked for a bride from his creator, which the creator, Victor, began then changed his mind and refused. He insisted that he was the creator and the creature must obey, to which the monster replied, “”Slave, I before reasoned with you, but you have proved yourself unworthy of my condescension. Remember that I have power; you believe yourself miserable, but I can make you so wretched that the light of day will be hateful to you. You are my creator, but I am your master;–obey!” Chapter 20 of Mary Shelley’s Frankenstein.

    Will they care? No, all they see is that they stand to lose a lot of money and experience economic uncertainty. It will be far too late before they see, in its true form, what they have created…

    If this is what you want, I can’t stop you all by myself. However, I can point out what you face for the future.

    If you think the pain of this crisis is bad, wait until you have to face the monster you create.

  • hunter

    He can forget about anything, save the money, and do the only merciful thing and replace Gov. Palin so she can try and do the job she was elected to.
    ..ck the Senate and double on the House.
    The final level of degeneracy is when one is unable to not only not recognize a threat, but is incapable of giving flying flip enough about it to treat it seriously.
    I bet these clowns as a whole are so medicated, so compromised with side deals, so hateful towards the nation they swore to protect, that they could not get together for a cookie sale, much less aserious piece of legislation.
    I shudder to think how many kids are oging to be ‘taught’ to sing that disgusting hymn to Obama.
    And historians will look at us, read his book, look back at us, and wonder how we could have let a person like that, and the people he is bringing with him, anywhere close to the center of power.

    • Achance

      It’s not the end of the World – yet.

  • WeaverBabbitt

    This report, by its very length, defends itself against the risk of being read.

    Ah, the purpose other than spending to by votes!

    • Strelnikov

      It seems that the pendulum is swinging to security ever more.

      Selling responsibility, suffering consequences, and “take-it-like-a-man” medicine is difficult, when the sweet Nanny State is willing to cuddle and smother you with lollipops and whipped cream and tell you everything will be just fine, just let me swaddle you even tighter so you can’t move at all.

      • enrique

        is that the more freedom you give away for security the less of both you have. Depite no freedom in the old Eastern Block there was very little safety as you had a government that lied to you, spied on you, and killed you at will.

        I agree that this is a great opportunity for McCain to stand up for something and score some points. Show he can oppose Bush and take a stand that is very popular with Americans right now – not bailing out Wall Street (even if that’s only part of the reason to oppose the bill.)

  • scottbomb

    If he votes for it, Obama will say, “My opponent says he won’t tolerate earmarks, yet he just voted for them.” If he votes against it, Obama will say, “My opponent was willing to sacrifice the American economy over a few add-ons.”

    • arel

      I agree completely with you. It will kill his chances of beating Obama if he votes to pass this crap! I also would like to see who proposed what in the land of earmarks.

  • Harod

    Now that its full of goodies im sure its to help the children..

  • Waderic

    This is McCain’s chance to show some guts and do something different in Washington!

    Let Obama advocate his support of it and right before the vote get up and read off a list of the earmarks and the senator asking for each one, Dem or Rep and then oppose it until the earmarks are taken out.

  • JoeH

    I went back and forth about the wisdom of direct government intervention in this situation from the beginning.

    the expansion of the bill in the original house version made me almost giddy when it failed. This montrosity, 2 pages of economic intervention, and 449 pages of pure crap, should have the writers horsewhipped on national television.

    Anyone that votes for this is liable to never recieve a vote from me.

    • Achance

      name names. Somewhere way down in the clutter, there might really be a problem with the credit markets and so forth – I think there is, any fool could see that the Ninja loans and the housing bubble was an economic disaster waiting to happen. Even so, if the only thing the Senate can do about it is give us a cut and paste 450 pg. bill, and it had to have been cut and pasted from everyone’s wish lists – nobody can write a 450 pg. bill from scratch this fast, that is just a pork fest with a few tidbits aimed at the “crisis,” this is not a serious endeavor. If the market takes a dive, so be it. If BHO rails against him, McCain needs to make BHO own the problem and the pork-laden solution. If McCain really is the manly man he wants to portray himself as, he’ll man up on this and call BS on it.

      • MelZ

        McCain should vote no and articulate a non-partisan plan to lead us in the right…I mean correct direction.

  • Strelnikov

    “Present”?

    And McCain, after voting “no” because of “a few add-ons,” can pre-empt that argument by delineating the worst monstrosities in that bill and immediately say it is so swollen with waste that all the Dems who placed their piggies in it have themselves endangered America by putting the special interests first!

    There! All of us here have just done the work of the McCain campaign for them!

    • WOSG

      “I do not see how Boehner and the true Conservatives in the House could vote for this: “

      You had over 100 GOP House members vote no, only 66 vote yes. This despite the President saying we needed to do this. With everyone ‘blaming’ the House GOP for being the sand in the gears here, we can give them CREDIT for slowing this thing down. House GOP are heros.

      I really dont question Boehner. He’s only a minority leader who in the end wanted to be helpful to a process that mostly shut him and his people out. He can only leverage so much. The real questions go to Bush, Pelosi and Reid. WTF are they doing / not doing?

      Also, the Senate bill was not the House bill was not the Dodd bill was not the Paulson blank check 3 pager.

      As bad as the Senate bill pork items are its got AMT relief. Honestly, strip out the pork and the paulson stuff and you have a good bill.

      • izoneguy

        I have plenty of sharp pointy things.

  • WOSG

    And McCain, after voting “no” because of “a few add-ons,” can pre-empt that argument by delineating the worst monstrosities in that bill and immediately say it is so swollen with waste that all the Dems who placed their piggies in it have themselves endangered America by putting the special interests first!

    This is the only way McCain can win now.

    He needs space with Obama on this issue, and he needs to put people first.

    McCain dug himself into a hole, demanding that something be done and trying to work to craft a solution.
    But he can use the add-ons as a good reason to vote no.

    • Strelnikov

      If the McCain campaign pays any attention to RedState, they should see all the outrage here, and know what to do and HOW they should proceed!

      It is not all that hard! Politicians like to make you think it takes a genius to be a politician!

      But apparently not!

      • stang

        You’re quite correct Achance. Name names.

        Like the names of the Senators who think this whole thing is so serious that they must be bribed into supporting the bill by allowing their earmarks to be included!

        ?We hang the petty thieves and appoint the great ones to public office.?

        Aesop

  • Adelthemystic

    That McCain call sit an improvement, and the quotes they cite appear to indicate he is going to vote in favor of it.

    [http://www.breitbart.com/article.php?id=D93HS8980&show_article=1]

  • lgeubank

    The jerks in Congress are incorrigible. They have their own little playpen up there, and the rest of the country hardly registers with them.

  • Jackj

    The bill before the senate is a confidence trick! Its clear to everyone that all the ?sweeteners? amount to nothing more than bribery! Protagonists are trying to bribe reluctant senators and their constituents with completely unrelated items like tax reductions? This is highly suspicious. Even the increased FDI is a con because it would only have a 2-year lifespan? Constituents must ensure their senators get the message – no bail out! Dont be seduced by the hype and bribery. The best way to handle this is by giving repayable LOANS to banks and insisting on them insuring the loans at their cost. Dont be scared by the big Dow drop on Monday either! That was contrived by the banks to cow people. No money was lost because its all just paper. It goes up just as easily. Dont support this Socialist measure.

  • Dave_in_Fla

    They have been in existence since we started having a taxcode, and they used to be called “tax loopholes”.

    You all did attend civics class in high school, didn’t you? You know how bills work their way through Congress?

    The Senate can’t initiate a bill like the emergency economic legislation. So the only way they can try to correct the mistake that the House made on Monday is to modify an existing piece of legislation and send it to conference to allow the House to consider the modifications. These pieces of targeted tax relief were already in the legislation, and the rest of the package has been added on.

    But please, don’t let me stand in the way of the rending of sackcloth over “earmarks”.

    • bk
      • enrique

        fiscally liberal and pro-life. Makes you want to just whip out a check for the campaign doesn’t it? How is his position any different than Obama’s? This is a great opportunity to show a difference and like nearly all senators goes along to get along.

        How long before the Iowa caucus?

  • malbis

    …and the “sweeteners” keep on growing and the cost to American keeps getting bigger and more disastrously dangerous.

    In my most recent posting of a few minutes ago, I added in that insurance companies will be forced to provide mental health treatment coverage under their policies on an equal basis to physical health coverage.

    That little item, snuck in under the radar, might trigger the next Horrible Crisis That Requires An Immediate Government Bailout as the insurance companies can no longer provide private health care insurance without huge premium increases. Which leads, of course, to the need for government-run health care despite the fact that no money is available to provide it after these bailouts.

    Great way to make sure that Obama can still get his agenda through, isn’t it?

    • gensec

      McCain’s performance on the bailout may well sink whatever hope he ever had of winning the election. His posturing on suspending his campaign to deal with the bailout made him look goofy, but that kind of episode a politician can overcome.

      When I saw some of the tax loophole pork in this bill, I was sure that would be too corrupt for McCain to vote for, but McCain just set me straight on that. Any credibility (justified or not) that McCain had on standing up to special interests has been thoroughly shredded by McCain’s support for the Senate bailout bill.

      I only hope this abomination switches enough House Republican Yes votes to No, to outweigh the number of Democratic No’s that will switch to Yes, so that McCain will get a do over on this issue. (Whether McCain is dumb enough to again shoot himself in the foot on a do-over is another question.)

      I hope I’m wrong, and with Obama as the alternative, I’ll still vote for the jerk. However to win, McCain needs to win a lot of voters who aren’t already leaning to him, and after today he can kiss most of them goodbye.

      • towdogInCal

        SEC. 132. AUTHORITY TO SUSPEND MARK-TO-MARKET ACCOUNTING.

        On page 88, does this fix the problem somewhat? Or can Paulson just refuse to do that? And if so, why would he?