“WASHINGTON – The Senate has sweetened its $700 billion rescue package for tottering financial companies with tax breaks broad enough to save 20 million people an average $2,000 a year in higher taxes and narrow enough to help makers of wooden toy bow-and-arrow sets.
The tax relief package has a little something for a lot of people: In addition to adjusting the alternative minimum tax, saving more than 20 million from seeing a big jump in their tax bill next April, it has tax relief for disaster victims and measures to promote renewable energy resources such as wind and solar power. It renews an expired R&D credit, essential to many businesses, and extends individual tax breaks for college tuition and teachers’ out-of-pocket expenses.
The tax package has some measures to bring in more tax revenues from oil and gas companies, but still would cost about $100 billion over 10 years.
“Adding tax relief that creates jobs, supports families and secures a new energy future for the country make this bill a lot fairer and a lot better for hardworking, taxpaying Americans,” said Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee.

Congress has been trying for much of the year to pass legislation that provides one-year relief for the AMT and extends dozens of expired or soon-to-expire tax breaks. But fiscally conservative Democrats have insisted that much of the “extenders” package – referring to the tax break extensions – be paid for with new revenues so as not to add to the federal deficit, while Senate Republicans say that any change in the Senate-passed legislation that increases taxes is unacceptable.

On Monday House leaders rejected the Senate’s take-it-or-leave position, and threatened to adjourn without acting on the tax breaks. Attaching the Senate tax relief bill to the financial rescue package could give the House a way to accept the Senate bill without directly sacrificing its budget principles. A House vote could come on Thursday.

“At risk with the possible failure of the extenders package are hundreds of thousands of jobs, billions of dollars in clean energy investment, crucial incentives for research and development, and a range of popular programs,” a coalition of hundreds of businesses, environmental and labor groups, electric utilities and public health advocates said Wednesday in a letter coordinated by solar and wind power associations.

Inclusion of the tax package complicated the vote of some in the House who helped defeat the rescue package on Monday.

Rep. Roscoe Bartlett, R-Md., said last week that in the longer run the tax incentives may be more important than the rescue package. “We are facing a huge energy crisis in the future. If we don’t underwrite these energy companies they won’t be there when we need them.”

But Bartlett said Wednesday that while he was “delighted” by the inclusion of the tax breaks, he still would vote against the overall rescue package because “we don’t need this huge burden on our future generations.”

Among the most important tax breaks that have expired and will be extended are the R&D credit, a credit that allows states without income states to deduct state and local sales taxes, a deduction for higher education costs, charitable giving incentives and an expansion of the child tax credit.

There’s a major provision, sought by lawmakers from Western states, to extend through 2011 a program that funds rural schools and local governments that have low property tax bases because they lie within or are adjacent to federal lands. That extension would cost an estimated $3.3 billion over 10 years.

There are dozens of other highly targeted provisions helping makers of wooden practice arrows used by children, film and television productions, motorsports racetrack property and the wool trust fund.

Oregon Sens. Ron Wyden and Gordon Smith introduced a bill in May to fix an item in the tax code under which the excise tax on inexpensive arrows for children is greater than the selling price of the arrows. Some nine manufacturers nationwide are affected.

Other provisions target fishermen affected by the Exxon Valdez oil spill, mine safety equipment, American Samoa economic development and Indian employment.

Also part of the tax package is a measure, long sought by mental health advocates, that would give parity to benefits for mental health treatment”

“WASHINGTON – The Senate has sweetened its $700 billion rescue package for tottering financial companies with tax breaks broad enough to save 20 million people an average $2,000 a year in higher taxes and narrow enough to help makers of wooden toy bow-and-arrow sets.
The tax relief package has a little something for a lot of people: In addition to adjusting the alternative minimum tax, saving more than 20 million from seeing a big jump in their tax bill next April, it has tax relief for disaster victims and measures to promote renewable energy resources such as wind and solar power. It renews an expired R&D credit, essential to many businesses, and extends individual tax breaks for college tuition and teachers’ out-of-pocket expenses.
The tax package has some measures to bring in more tax revenues from oil and gas companies, but still would cost about $100 billion over 10 years.
“Adding tax relief that creates jobs, supports families and secures a new energy future for the country make this bill a lot fairer and a lot better for hardworking, taxpaying Americans,” said Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee.

Congress has been trying for much of the year to pass legislation that provides one-year relief for the AMT and extends dozens of expired or soon-to-expire tax breaks. But fiscally conservative Democrats have insisted that much of the “extenders” package – referring to the tax break extensions – be paid for with new revenues so as not to add to the federal deficit, while Senate Republicans say that any change in the Senate-passed legislation that increases taxes is unacceptable.

On Monday House leaders rejected the Senate’s take-it-or-leave position, and threatened to adjourn without acting on the tax breaks. Attaching the Senate tax relief bill to the financial rescue package could give the House a way to accept the Senate bill without directly sacrificing its budget principles. A House vote could come on Thursday.

“At risk with the possible failure of the extenders package are hundreds of thousands of jobs, billions of dollars in clean energy investment, crucial incentives for research and development, and a range of popular programs,” a coalition of hundreds of businesses, environmental and labor groups, electric utilities and public health advocates said Wednesday in a letter coordinated by solar and wind power associations.

Inclusion of the tax package complicated the vote of some in the House who helped defeat the rescue package on Monday.

Rep. Roscoe Bartlett, R-Md., said last week that in the longer run the tax incentives may be more important than the rescue package. “We are facing a huge energy crisis in the future. If we don’t underwrite these energy companies they won’t be there when we need them.”

But Bartlett said Wednesday that while he was “delighted” by the inclusion of the tax breaks, he still would vote against the overall rescue package because “we don’t need this huge burden on our future generations.”

Among the most important tax breaks that have expired and will be extended are the R&D credit, a credit that allows states without income states to deduct state and local sales taxes, a deduction for higher education costs, charitable giving incentives and an expansion of the child tax credit.

There’s a major provision, sought by lawmakers from Western states, to extend through 2011 a program that funds rural schools and local governments that have low property tax bases because they lie within or are adjacent to federal lands. That extension would cost an estimated $3.3 billion over 10 years.

There are dozens of other highly targeted provisions helping makers of wooden practice arrows used by children, film and television productions, motorsports racetrack property and the wool trust fund.

Oregon Sens. Ron Wyden and Gordon Smith introduced a bill in May to fix an item in the tax code under which the excise tax on inexpensive arrows for children is greater than the selling price of the arrows. Some nine manufacturers nationwide are affected.

Other provisions target fishermen affected by the Exxon Valdez oil spill, mine safety equipment, American Samoa economic development and Indian employment.

Also part of the tax package is a measure, long sought by mental health advocates, that would give parity to benefits for mental health treatment”

“WASHINGTON – The Senate has sweetened its $700 billion rescue package for tottering financial companies with tax breaks broad enough to save 20 million people an average $2,000 a year in higher taxes and narrow enough to help makers of wooden toy bow-and-arrow sets.
The tax relief package has a little something for a lot of people: In addition to adjusting the alternative minimum tax, saving more than 20 million from seeing a big jump in their tax bill next April, it has tax relief for disaster victims and measures to promote renewable energy resources such as wind and solar power. It renews an expired R&D credit, essential to many businesses, and extends individual tax breaks for college tuition and teachers’ out-of-pocket expenses.
The tax package has some measures to bring in more tax revenues from oil and gas companies, but still would cost about $100 billion over 10 years.
“Adding tax relief that creates jobs, supports families and secures a new energy future for the country make this bill a lot fairer and a lot better for hardworking, taxpaying Americans,” said Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee.

Congress has been trying for much of the year to pass legislation that provides one-year relief for the AMT and extends dozens of expired or soon-to-expire tax breaks. But fiscally conservative Democrats have insisted that much of the “extenders” package – referring to the tax break extensions – be paid for with new revenues so as not to add to the federal deficit, while Senate Republicans say that any change in the Senate-passed legislation that increases taxes is unacceptable.

On Monday House leaders rejected the Senate’s take-it-or-leave position, and threatened to adjourn without acting on the tax breaks. Attaching the Senate tax relief bill to the financial rescue package could give the House a way to accept the Senate bill without directly sacrificing its budget principles. A House vote could come on Thursday.

“At risk with the possible failure of the extenders package are hundreds of thousands of jobs, billions of dollars in clean energy investment, crucial incentives for research and development, and a range of popular programs,” a coalition of hundreds of businesses, environmental and labor groups, electric utilities and public health advocates said Wednesday in a letter coordinated by solar and wind power associations.

Inclusion of the tax package complicated the vote of some in the House who helped defeat the rescue package on Monday.

Rep. Roscoe Bartlett, R-Md., said last week that in the longer run the tax incentives may be more important than the rescue package. “We are facing a huge energy crisis in the future. If we don’t underwrite these energy companies they won’t be there when we need them.”

But Bartlett said Wednesday that while he was “delighted” by the inclusion of the tax breaks, he still would vote against the overall rescue package because “we don’t need this huge burden on our future generations.”

Among the most important tax breaks that have expired and will be extended are the R&D credit, a credit that allows states without income states to deduct state and local sales taxes, a deduction for higher education costs, charitable giving incentives and an expansion of the child tax credit.

There’s a major provision, sought by lawmakers from Western states, to extend through 2011 a program that funds rural schools and local governments that have low property tax bases because they lie within or are adjacent to federal lands. That extension would cost an estimated $3.3 billion over 10 years.

There are dozens of other highly targeted provisions helping makers of wooden practice arrows used by children, film and television productions, motorsports racetrack property and the wool trust fund.

Oregon Sens. Ron Wyden and Gordon Smith introduced a bill in May to fix an item in the tax code under which the excise tax on inexpensive arrows for children is greater than the selling price of the arrows. Some nine manufacturers nationwide are affected.

Other provisions target fishermen affected by the Exxon Valdez oil spill, mine safety equipment, American Samoa economic development and Indian employment.

Also part of the tax package is a measure, long sought by mental health advocates, that would give parity to benefits for mental health treatment”

I’m particularly glad about the last part about benefits to mental health treatment. This bill is making me angry and crazy. Now I’ll seek treatment.

I’m particularly glad about the last part about benefits to mental health treatment. This bill is making me angry and crazy. Now I’ll seek treatment.

“WASHINGTON – After one spectacular failure, the $700 billion financial industry bailout found a second life Wednesday, winning lopsided passage in the Senate and gaining ground in the House, where Republicans opposition softened.
Senators loaded the economic rescue bill with tax breaks and other sweeteners before passing it by a wide margin, 74-25, a month before the presidential and congressional elections.

In the House, leaders were working feverishly to convert enough opponents of the bill to push it through by Friday, just days after lawmakers there stunningly rejected an earlier version and sent markets plunging around the globe.

The measure didn’t cause the same uproar in the Senate, where both parties’ presidential candidates, Republican John McCain and Democrat Barack Obama, made rare appearances to cast “aye” votes, as did Obama’s running mate, Sen. Joe Biden of Delaware.

In the final vote, 40 Democrats, 33 Republicans and independent Sen. Joe Lieberman of Connecticut voted “yes.” Nine Democrats, 15 Republicans and independent Sen. Bernie Sanders of Vermont voted “no.”

President Bush issued a statement praising the Senate’s move. With the revisions, Bush said, “I believe members of both parties in the House can support this legislation. The American people expect and our economy demands that the House pass this good bill this week and send it to my desk.”

The rescue package lets the government spend billions of dollars to buy bad mortgage-related securities and other devalued assets held by troubled financial institutions. If successful, advocates say, that would allow frozen credit to begin flowing again and prevent a deep recession.

Even as the Senate voted, House leaders were hunting for the 12 votes they would need to turn around Monday’s 228-205 defeat. They were especially targeting the 133 Republicans who voted “no.”

Their opposition appeared to be easing after the Senate added $110 billion in tax breaks for businesses and the middle class, plus a provision to raise, from $100,000 to $250,000, the cap on federal deposit insurance.

They were also cheering a decision Tuesday by the Securities and Exchange Commission to ease rules that force companies to devalue assets on their balance sheets to reflect the price they can get on the market.

There were worries, though, that the tax breaks would cause some conservative-leaning “Blue Dog” Democrats who voted for the rescue Monday to abandon it. The bill doesn’t designate a way to pay for many of the tax cuts, and Blue Dogs typically oppose any measure that swells the deficit.

“I’m concerned about that,” said Rep. Steny Hoyer, D-Md., the majority leader.

Raising the deposit insurance limit – along with the SEC’s accounting change – helped House Republicans claim credit for some substantive changes. And with constituent feedback changing dramatically since Monday’s shocking House defeat and the corresponding market plunge, lawmakers’ comfort level with the package increased markedly.

Rep. John Shadegg, R-Ariz., who voted “no” on Monday, said he was leaning toward switching, and Rep. Steve LaTourette,R-Ohio, said he was “getting there.” Several others were weighing a flip, said Republican officials who spoke on condition of anonymity because the lawmakers had not yet announced how they would vote.

Leaders in both parties, as well as private economic chiefs everywhere, said Congress must quickly approve some version of the bailout measure to start loans flowing and stave off a potential national economic disaster.

“This is what we need to do right now to prevent the possibility of a crisis turning into a catastrophe,” Obama said on the Senate floor. In Missouri, before flying to Washington to vote, McCain said, “If we fail to act, the gears of our economy will grind to a halt.”
Critics on the right and left assailed the rescue plan, which has been panned by their constituents as a giveaway for Wall Street, and has little obvious direct benefit for ordinary Americans.

Sen. Jim DeMint, R-S.C., a leading conservative, said the step was “leading us into the pit of socialism.”

Sanders, a self-described socialist, said the rescue was fundamentally unfair.

“The masters of the universe, those brilliant Wall Street insiders who have made more money than the average American can even dream of, have brought our financial system to the brink of collapse,” Sanders said, and are demanding that the middle class “pick up the pieces that they broke.”

Still, proponents argued that the financial sector’s woes were already being felt by ordinary people in the form of unaffordable credit and underperforming retirement savings and without the bailout would soon translate into even more economic pain for working Americans, including more job losses.

“There will be no balloons or bunting or parades,” when the rescue becomes law, said Sen. Chris Dodd, D-Conn., the Banking Committee chairman. But lawmakers will have “the knowledge that at one of our nation’s moments of maximum economic peril, we acted – not for the benefit of a particular few, but for all Americans.”

Sen. Judd Gregg, R-N.H., said the intense, at times contentious, 11-day round of bipartisan talks to craft the bailout – which followed dire warnings of impending economic meltdown from Bush’s economic chiefs to congressional leaders – was an “extraordinary experience.”

“This is the way government’s supposed to work, folks, and it did,” Gregg said.

The Senate specializes in high-stakes legislating by enticement, and the long list of sweeteners it added was designed to attract votes from various constituencies.

In addition to extending several tax breaks popular with businesses, the bill would keep the alternative minimum tax from hitting 20 million middle-income Americans and provide $8 billion in tax relief for those hit by natural disasters in the Midwest, Texas and Louisiana.

Tax cuts new and old are favorites for most House Republicans. Help for rural schools was aimed mainly at lawmakers in the West, while disaster aid was a top priority for lawmakers from across the Midwest and South.

Another addition, to extend the deductibility of state and local taxes for people in states without income taxes, helps Florida and Texas, among others.

Increasing the deposit insurance cap was a bid to reassure individuals and small businesses that their money would be safe if their banks collapsed. It was particularly geared toward small banks that fear customers will pull their money and park it in larger institutions seen as less likely to fold.

The FDIC would be allowed to borrow unlimited money from the Treasury Department through the end of next year as a way to cover the increased insurance limit. If used, it would be the first time the agency has tapped Treasury for a loan since the early 1990s.

The rescue bill hitched a ride on a popular measure that gives people with mental illness better health insurance coverage. Before passing it, senators voted by an identical 74-25 margin to attach the massive bailout and the tax breaks.

“WASHINGTON – After one spectacular failure, the $700 billion financial industry bailout found a second life Wednesday, winning lopsided passage in the Senate and gaining ground in the House, where Republicans opposition softened.
Senators loaded the economic rescue bill with tax breaks and other sweeteners before passing it by a wide margin, 74-25, a month before the presidential and congressional elections.

In the House, leaders were working feverishly to convert enough opponents of the bill to push it through by Friday, just days after lawmakers there stunningly rejected an earlier version and sent markets plunging around the globe.

The measure didn’t cause the same uproar in the Senate, where both parties’ presidential candidates, Republican John McCain and Democrat Barack Obama, made rare appearances to cast “aye” votes, as did Obama’s running mate, Sen. Joe Biden of Delaware.

In the final vote, 40 Democrats, 33 Republicans and independent Sen. Joe Lieberman of Connecticut voted “yes.” Nine Democrats, 15 Republicans and independent Sen. Bernie Sanders of Vermont voted “no.”

President Bush issued a statement praising the Senate’s move. With the revisions, Bush said, “I believe members of both parties in the House can support this legislation. The American people expect and our economy demands that the House pass this good bill this week and send it to my desk.”

The rescue package lets the government spend billions of dollars to buy bad mortgage-related securities and other devalued assets held by troubled financial institutions. If successful, advocates say, that would allow frozen credit to begin flowing again and prevent a deep recession.

Even as the Senate voted, House leaders were hunting for the 12 votes they would need to turn around Monday’s 228-205 defeat. They were especially targeting the 133 Republicans who voted “no.”

Their opposition appeared to be easing after the Senate added $110 billion in tax breaks for businesses and the middle class, plus a provision to raise, from $100,000 to $250,000, the cap on federal deposit insurance.

They were also cheering a decision Tuesday by the Securities and Exchange Commission to ease rules that force companies to devalue assets on their balance sheets to reflect the price they can get on the market.

There were worries, though, that the tax breaks would cause some conservative-leaning “Blue Dog” Democrats who voted for the rescue Monday to abandon it. The bill doesn’t designate a way to pay for many of the tax cuts, and Blue Dogs typically oppose any measure that swells the deficit.

“I’m concerned about that,” said Rep. Steny Hoyer, D-Md., the majority leader.

Raising the deposit insurance limit – along with the SEC’s accounting change – helped House Republicans claim credit for some substantive changes. And with constituent feedback changing dramatically since Monday’s shocking House defeat and the corresponding market plunge, lawmakers’ comfort level with the package increased markedly.

Rep. John Shadegg, R-Ariz., who voted “no” on Monday, said he was leaning toward switching, and Rep. Steve LaTourette,R-Ohio, said he was “getting there.” Several others were weighing a flip, said Republican officials who spoke on condition of anonymity because the lawmakers had not yet announced how they would vote.

Leaders in both parties, as well as private economic chiefs everywhere, said Congress must quickly approve some version of the bailout measure to start loans flowing and stave off a potential national economic disaster.

“This is what we need to do right now to prevent the possibility of a crisis turning into a catastrophe,” Obama said on the Senate floor. In Missouri, before flying to Washington to vote, McCain said, “If we fail to act, the gears of our economy will grind to a halt.”
Critics on the right and left assailed the rescue plan, which has been panned by their constituents as a giveaway for Wall Street, and has little obvious direct benefit for ordinary Americans.

Sen. Jim DeMint, R-S.C., a leading conservative, said the step was “leading us into the pit of socialism.”

Sanders, a self-described socialist, said the rescue was fundamentally unfair.

“The masters of the universe, those brilliant Wall Street insiders who have made more money than the average American can even dream of, have brought our financial system to the brink of collapse,” Sanders said, and are demanding that the middle class “pick up the pieces that they broke.”

Still, proponents argued that the financial sector’s woes were already being felt by ordinary people in the form of unaffordable credit and underperforming retirement savings and without the bailout would soon translate into even more economic pain for working Americans, including more job losses.

“There will be no balloons or bunting or parades,” when the rescue becomes law, said Sen. Chris Dodd, D-Conn., the Banking Committee chairman. But lawmakers will have “the knowledge that at one of our nation’s moments of maximum economic peril, we acted – not for the benefit of a particular few, but for all Americans.”

Sen. Judd Gregg, R-N.H., said the intense, at times contentious, 11-day round of bipartisan talks to craft the bailout – which followed dire warnings of impending economic meltdown from Bush’s economic chiefs to congressional leaders – was an “extraordinary experience.”

“This is the way government’s supposed to work, folks, and it did,” Gregg said.

The Senate specializes in high-stakes legislating by enticement, and the long list of sweeteners it added was designed to attract votes from various constituencies.

In addition to extending several tax breaks popular with businesses, the bill would keep the alternative minimum tax from hitting 20 million middle-income Americans and provide $8 billion in tax relief for those hit by natural disasters in the Midwest, Texas and Louisiana.

Tax cuts new and old are favorites for most House Republicans. Help for rural schools was aimed mainly at lawmakers in the West, while disaster aid was a top priority for lawmakers from across the Midwest and South.

Another addition, to extend the deductibility of state and local taxes for people in states without income taxes, helps Florida and Texas, among others.

Increasing the deposit insurance cap was a bid to reassure individuals and small businesses that their money would be safe if their banks collapsed. It was particularly geared toward small banks that fear customers will pull their money and park it in larger institutions seen as less likely to fold.

The FDIC would be allowed to borrow unlimited money from the Treasury Department through the end of next year as a way to cover the increased insurance limit. If used, it would be the first time the agency has tapped Treasury for a loan since the early 1990s.

The rescue bill hitched a ride on a popular measure that gives people with mental illness better health insurance coverage. Before passing it, senators voted by an identical 74-25 margin to attach the massive bailout and the tax breaks.