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Now attached to bailout: Cheaper rum, plug-in vehicles, NASCAR aid
Showdown vote could come today
By Jim Abrams
Associated Press
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WASHINGTON, D.C. -- Wind power developers, disaster victims, college students, teachers and millions of taxpayers and businesses stand to see substantial benefits from the tax relief package that lawmakers added to the huge financial rescue plan. | Video

So will more narrowly focused groups, including motor sports racetrack owners, film producers and bicycle commuters.

Virtually all of the tax breaks already exist. But many of them expired Jan. 1 for use in the current tax year, and the others will expire three months from now unless Congress renews them.

The largest group of beneficiaries in what is now the tax portion of the financial rescue bill is about 20 million mainly upper-middle income taxpayers. Without congressional action, the AMT, with originally was supposed to affect only the very rich, would add some $2,000 this year to the tax bill of people mostly earning under $200,000 a year.

Thousands of businesses are waiting for renewal of the research-and-development tax credit, which expired at the end of last year. Without that credit, industry advocates say, high tech, biotech and aerospace companies would have trouble hiring the highly skilled workers needed to compete with foreign competitors.

The Information Technology Association of America reports an $18.5 billion drop in R&D activity since the beginning of the year when the credit lapsed. The R&D credit extension would cost $19 billion over 10 years. The cost of the entire tax portion of the bill is close to $110 billion.

The renewable energy incentives include an eight-year extension of investment credits for solar energy, as well as breaks for wind, geothermal and other alternative sources. The solar industry says extension of the credits through 2016 would produce an extra 440,000 jobs and more than $230 billion in investments.

The measure also has $8 billion in tax breaks for disaster victims, $5 billion for higher education tuition deductions and $400 million in deductions for teachers who buy school supplies with their own money.

There are $3 billion in deductions for residents of states without income taxes that have state and local sales taxes. Extending the deduction would save Texans a projected $1.2 billion a year or an average of $520 per filer claiming the deduction, said Matt Mackowiak, spokesman for Sen. Kay Bailey Hutchison, R-Texas.

Here’s what inside the new bill

There are also some four dozen small provisions. Among them, with projected costs over 10 years:

• Extending an expired provision that gives Puerto Rico and the Virgin Islands a rebate against excise taxes charged on imported rum. The rebate, at $13.50 per proof gallon, has been in effect since 1999. The cost is $192 million.

• Establishing a new tax credit ranging from $2,500 to $7,500 for purchasers of plug-in electric-drive vehicles. Cost: $758 million.

• Extending tax credits that expired at the end of 2007 for certain domestic corporations involved in American Samoa economic development. Cost: $33 million.

• Extending a credit of up to $10,000 for the training of mine rescue team members. The credit expires at the end of this year and the one-year extension costs $4 million.

• Enacting President Bush’s proposal to erase the debt of the black lung disability trust fund at a cost of $1.3 billion.

• Extending for one year a seven-year depreciation timetable that NASCAR and other motorsport racing facilities have had for some years, the same tax break that amusement parks enjoy. Without the extension, the tracks would have to depreciate the cost of their improvements over 15 years, raising their taxes by $100 million.

• Extending for five years a program that reduces import duties on some wool fabrics. The tariff relief benefits U.S. worsted wool fabric producers that use imported fibers and yarns. Cost: $148 million.

• Increasing the single-year deduction in production costs, from $15 million to $20 million, that film and TV productions may take if the costs are incurred in economically depressed areas. In an effort to keep film and TV productions in the U.S., it also allows more companies to use a domestic production deduction. Cost: $478 million.

• Allowing commercial fishermen and others hurt by the 1989 Exxon Valdez oil spill in Alaska to average out damage awards over three years rather than taking a one-year hit from the IRS. Cost: $49 million.

• Extending two programs that fund rural schools and rural communities that have been relying on declining income from logging on federal land or have low property tax bases because they are located on or next to federal lands. This is a major issue in the West. Cost: $3.3 billion.

• Exempting wooden practice arrows used by children from an excise tax of 39 cents per arrow. Oregon’s two senators have pushed for the action, saying the tax was meant for more expensive archery arrows and is untenable for makers of toy arrows that may cost only about 30 cents apiece. The bill would affect about nine manufacturers nationwide, including one in Oregon. Cost: $2 million.

• Allowing employers to exempt from taxation what they spend on some fringe benefits for workers who commute to work by bicycle, for example reimbursing the cost of parking the bikes. Cost: $2 million.

Some House members and radio-TV commentators have called for eliminating several of the measures, including those affecting wooden arrows, Puerto Rican rum, racetracks and film producers.

“All these things are called sweeteners in order to get votes from Democrats and Republicans in the House,” conservative commentator Rush Limbaugh said at the opening of his show Thursday. “To get this bailout through the Senate and House, they’ve added pork. Surprise, surprise.”

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Reader comments on this story - 29 total

Note: All views and opinions expressed in reader comments are solely those of the individual submitting the comment, and not those of the Pantagraph or its staff.

0u812 wrote on Oct 4, 2008 5:07 PM:

" why does everybody complain? the name of the game is work until you die.that is the American way. "

catred57 wrote on Oct 4, 2008 7:24 AM:

" This "rescue" smells to high heaven!! "

91241 wrote on Oct 3, 2008 1:36 PM:

" Are we a bunch of Jibbering idiots???? We are the country! and we let our politicians soak us, and soak us!! Over 100+ Billion!! read all the add-ons to the 70 billion. It will make you sick. When the hell are we going to wake up? If you do not look up the add-ons and pin point the legislators who are using their power to gouge us then forever shut your mouth. "

420 wrote on Oct 3, 2008 10:47 AM:

" Nascar aid? jeez I thought Al Gore would of stepped in as Nascar is a horrible waste of our resources and is a huge un-needed pollution machine that the government is condoning? I thought the focus of the nation was to find ways to conserve energy and promote clean healthy air for all to breath!
Plus look around your town how many people do you know that is making 10 + million dollars a year, as if someone like that would need tax breaks and assistance from the general public to foot their bills? Corruption is at all levels of government and is blatantly obvious.. "

Native wrote on Oct 3, 2008 10:33 AM:

" ogs, real defensive aren't we now. What accusations I asked a simple question.
Sen Feinsten said? there goes any credabilty you might have had.
Rasmussen poll? Who paid for it and what results did they want.

I just did a poll, 9 of 10 people I asked supported the bailout. That is 90% ogs.

Polls are only good if they support your position. And the polls ALWAYS get the results that the pollster wants. So don't trust polls or California Politicos. "

Dave wrote on Oct 3, 2008 8:58 AM:

" CountryGirl: Every poll I've seen, and I've seen several, have shown that the vast majority of Americans are against any kind of bail out.
On the other hand, the same polls reflect a desire for Congress to do something.
Notice there is a vast difference between opposing the bail out and wanting Congress to do something.
I want Congress to do some things, like changing the Mark to Market accounting practices they forced onto bankers, guaranteeing loan rewrites for certain segments of borrowers, eliminating any capitol gain taxes on any profit off homes bought in foreclosure and other things space won't permit me to include here.
This whole banking bailout is just one last effort by Bush and company to deliver the wealth of this country into the hands of his rich elite coconspirators in crime. "

pseudo-intellectual wrote on Oct 3, 2008 8:46 AM:

" OGS and others who are against the bailout just want the government to spend trillions on them, rather than saving the economy. Would you really put Obama's schemes for national healthcare and guaranteed college education ahead of things like jobs, savings, and national defense? "

KJK74 wrote on Oct 3, 2008 8:42 AM:

" What a joke. I feel violated. "

Dr.Orangutan Chief Cardiologist Miller Park Zoo wrote on Oct 3, 2008 8:32 AM:

" Dear Pontiac resident. I have heard of BARREL Horse racing and polo,but I ain't ever heard of polotics. "

Country Girl wrote on Oct 3, 2008 8:02 AM:

" To OGS: Be careful with the stats. That was CA. Most of the polls I have seen have been pretty much split. Most were saying something needed to be done but maybe not the way the original bill read. You were the 1st I had heard quote a 91% against bailout. The WGN poll in Chicago was pretty evenly split. "

Pontiac resident wrote on Oct 3, 2008 7:51 AM:

" Didn't see where the Pantagraph mentioned who attached these things to the bailout? With people? Name names, please? If we're going to have PORK BARREL polotics, please tell us who are the culprits? Very unresponible reporting! "

2tired wrote on Oct 3, 2008 7:49 AM:

" NASCAR???????? It's a billion dollar industry, why not give billions back to the Big Oil. Oh I'm sorry you do. No problem how much more do you want me to pay in taxes, I don't need my money. I'll be more than happy not to get any thing new. Maybe I can work harder for less money and give my great socialist goverment more. "

illini boy wrote on Oct 3, 2008 7:36 AM:

" This headline explains half of our problems. "Now attached to bailout: Cheaper rum, plug-in vehicles, NASCAR aid"
One of the biggest problems we have is the ability for a congressperson to add provisions to a bill. Even if they are bad or hidden on the six hundredth page they get passed because the main bill is the one that is voted on. Each bill should have to stand on it's own and all this nonsense would never get injected into law. Most of the members of congress don't even read the bills, their staff does and tells them which way to vote and that is dictated by how it affects their own chances for re-election because that is all they care about. It has been this way since the dawn of time and why they always do such a poor job in Washington. This and also ending, earmarks, and lobbyist's who essentially bribe our elected officials in Washington. The entire works is so corrupt but we just go along with it as usual. When are we going to wake up? "

ktlin wrote on Oct 3, 2008 6:38 AM:

" to OGS: I wondered if that would happen from the beginning. It is one of those things we don't need to know I guess. Like a lot of things. Like the fact we are borrowing from China every week or so. Who okayed that? I think more people would say no no no if they had been asked or told that was happening early on. "

ktlin wrote on Oct 3, 2008 6:37 AM:

" Wouldn't that be funny? First of the all the Republicans keep the original bill from passing because they didn't hold up their end of the deal. Then they add 1 and a half billion more so the Republicans then support it. And they do it because of phone calls made by Obama. Classic! McCain made calls too of course but he didn't make a difference before why would he now? And did Obama announce to the world and play a stunt to do it? Or did someone else relay that info? Classic! "

alexp wrote on Oct 3, 2008 6:24 AM:

" Look at the pork in this bill; wool research, wooden arrow manufacturers, rum importers, Alaskan firshermen, deduction of sales tax in non-income taxed states (i.e. Texas, Florida), film production, money to American Samoa(huh?), help companies build bicycle parking. It was all over the news on CNN last night. Get the facts folks. This is pork and it added another $113billion to our tab. The Senate is playing politics as usual. Lets hope the House remains firm and kills this bill again. My guess is the Republicans will take their pork and get this to pass. "

OGS wrote on Oct 2, 2008 6:39 PM:

" Half of the bail out money is going to foreign investors,,,not American investors!!! Info compliments of Rep. Brad Sherman, tonight's Lou Dobbs report. This bail out plan is a criminal fleecing of America!!! Period! "

OGS wrote on Oct 2, 2008 6:25 PM:

" Do not let the politics of fear sway you. This is akin to the war on terror, the weapons of mass destruction, the war of drugs. Stay scared and let the gub-er-nent save you. They create the mess and then offer the solution. Be aware! Wake up! No banker let behind is their plan and then the middle class gets flushed on again. "

OGS wrote on Oct 2, 2008 6:21 PM:

" to Native
Senator Feinstein, CA., make mention today that of 91,000 calls to her office alone,,,85,000 are AGAINST the bailout! That equals 93.4%. Look it up if you still think I make things up. Please understand that Hank Paulsen our Secretary of Treasury gets to be the one to dole out the $700 billion! Hanky Panky used to be CEO of Goldman Sachs. Only a fool would trust this deal. "

OGS wrote on Oct 2, 2008 6:11 PM:

" to Native
Ramussen poll. Do your homework before you make accusations, thank you. "

tatbtime wrote on Oct 2, 2008 5:42 PM:

" O goodness!!! I think we will all be begging before too long. China is not our friend. "

OGS wrote on Oct 2, 2008 4:19 PM:

" Watch s-span so you can rebuff the headline of spewing propaganda. Never give up in what yo believe in. Never! "

Cthulhu wrote on Oct 2, 2008 4:11 PM:

" Grab your ankles, America! "

Native wrote on Oct 2, 2008 4:02 PM:

" OGS, where do you get that 91%? Just wondering sounds made up. "

The other Dave wrote on Oct 2, 2008 4:01 PM:

" The Federal trough is opening up. Congress is filling it with money so let the feeding begin. "

FollowTheConsitution wrote on Oct 2, 2008 3:50 PM:

" The Chinese will be coming to foreclose on America and we will have world war III right here on our own soil!

Of course we should be safe because Obama knows how to negotiate! LOL "

justathot wrote on Oct 2, 2008 1:55 PM:

" If this ridiculous notion passes it better come with a clause for the lower and lower-middle class working"person" to be taught Chinese as that is who our "representatives" are selling our collective soul to. Wake up people! Boring as financing is, you MUST learn what is really going on here or don't complain when you are standing in line begging for a bowl of rice! "

OGS wrote on Oct 2, 2008 1:41 PM:

" The bailout/rescue plan should be called what it really is:

NO BANKER LEFT BEHIND! "

OGS wrote on Oct 2, 2008 1:19 PM:

" The American people have spoken to the tune of 91% against the bailout. The Senate has spit in our face!
Call the House and say NO BAILOUT! NO RESCUE PLAN!
1-202-225-3121
TODAY AND THIS EVENING MAY VERY WELL BE YOUR LAST CHANCE! "
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