Breaking Down The Bailout Bill

While the bailout bill awaits a crucial vote from the House, taxpayers may be wondering where the $700 billion is going and the answer may surprise you.

 

A large majority of the $700 billion bailout package will be used to rescue financial markets, billions more in tax breaks will be used to fund projects like renewable energy and middle class workers.  But taxpayers may be shocked to find out roughly $150 billion will go toward tax credits for specific industries.

 

Some of the sweeteners, as they're being called, include tax breaks for makers of wooden practice arrows for children, along with rum producers in Puerto Rico and the Virgin Islands.  The bill also includes provisions for racetrack property and wool research.

 

And just how do these add-ons get passed through in a bill meant to bail out financial markets?  KEYC/FOX Mankato spoke with Congressman Tim Walz earlier today and he says he's wondering the same thing.  Congressman Tim Walz says, "Now all of a sudden it comes packed with all this extra stuff, I don't know how anyone in your listening audience will think that that's ok in a time of crisis, why we're not dealing with this clean, why we're not dealing with the crisis."

 

But while many believe these added 'sweeteners' have no place in the bailout bill, state lawmakers say the package is too crucial not to pass.  Senator Amy Klobuchar says she voted for the bill because of the urgency, but still has doubts about what's in the bill.  Senator Klobuchar, ""I support this legislation to stabilize our economy with many reservations. I do not support it to rescue Wall Street. I support it to protect Main Street by averting an economic catastrophe that would otherwise force millions of Americans to lose their jobs, their homes and their retirement savings."

 

After last night's vote, Senator Norm Coleman released a statement saying quote: "This plan is crafted in a way that protects the American taxpayer and holds Wall Street accountable. It ensures no blank checks and contains stringent oversight protections to watch where the dollars are going..."

 

Members of Congress agree the revised plan includes several provisions beneficial to southern Minnesota, including:  Incentives to produce wind energy, help for the middle-class and parity in insurance coverage for mental health benefits, a matter that Paul Wellstone fought for.

 

Representative Walz says he is still unsure what his vote will be tomorrow, but he has been in contact with Senator Obama and will continue to ask the tough questions even after the vote.



 


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