How Did the Bailout Bill Get So Long?

While the $700 billion to purchase souring assets remains, the bill now has all sorts of new tax breaks.

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While the centerpiece of the bailout package that the Senate passed Wednesday is still a measure allowing the government to buy up to $700 billion of souring securities, the bill has gotten a whole lot more expansive since its initial proposal. (The original bill was just three pages long, now it's up over 400.)

In addition to tacking on provisions that would boost the FDIC's deposit insurance limits and restate the SEC's authority to suspend a key accounting rule, the new legislation includes billions of dollars in tax breaks.

Here's a run down of some of the most intriguing tax provisions in the legislation:

From the bailout bill, via naked capitalism:

SEC. 308. INCREASE IN LIMIT ON COVER OVER OF RUM EXCISE TAX TO PUERTO RICO AND THE VIRGIN ISLANDS...

SEC. 317. SEVEN-YEAR COST RECOVERY PERIOD FOR MOTORSPORTS RACING TRACK FACILITY....

SEC. 325. EXTENSION AND MODIFICATION OF DUTY SUSPENSION ON WOOL PRODUCTS; WOOL RESEARCH FUND; WOOL DUTY REFUNDS...

SEC. 503. EXEMPTION FROM EXCISE TAX FOR CERTAIN WOODEN ARROWS DESIGNED FOR USE BY CHILDREN.

And check this out, from the Senate's section-by-section analysis of the bill:

Section 122. Increase in the Statutory Limit on the Public Debt.

Raises the debt ceiling from $10 trillion to $11.3 trillion.


TAGS:
legislation
taxes
fiscal policy

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