I have written and said a lot of things before with a lot of emotion and, perhaps even, exaggeration. However, today, I am flat-out mad. Today, October 3rd 2k8, Congress decided that taxpayers were eligible and required to pay COMPANIES for the failures and fuck-ups of Wall St.. Companies did so poorly and took so many risks that they aren’t even liable for their own actions, we, the middle class, are.

Today, the bailout bill was passed, and today the pockets of every tax-paying citizen were reached into so that a companies stock doesn’t go down.

Provisions

Lets look into some of the provisions of the bill:

1. Of course, the $700 billion appropriated to the government to buy off “depreciated assests” from the nations major financial institutions. This money comes in waves with $250 billion available immediately, $100 billion at the request of the President (we know Bush will release this money as soon as he possibly can), and any further sums to be requested to Congress.
2. Salary caps on executives who work under companies that require this assistance (the cap is still ridiculously high for a company that supposedly risked going under, and oh yea, any money they were promised before the bill they still get).
3. Provisions to protect taxpayers such as the company paying any net loss incured after 5 years (what if the company can’t or it goes under before then?), and the Treasury becomes a vested stock-holder in the company.
4. Two oversight panels to make sure everyone is playing by the rules (what rules?).
5. Increased FDIC insurance from $100,000 to $250,000 (I am sure middle America has this much money in even one account, if you catch my sarcasm).
6. Tax breaks to companies for various energy policies

This is not all of the provisions, but most of the core ones that are mentioned day in and day out. However, this list is awfully short for a bill that totals over 100 pages. Lets look at a few other provisions that landed in the bill that weren’t in the news.

Pork

This is where EVERYONE’S tax money is about to go (remember, this is a bill that is supposed to bailout our economy).

1. Creation of a seven-year cost recovery period for construction of a motorsports racetrack: Track owners currently follow a seven-year depreciation schedule and write each year’s depreciation off their taxes. The IRS wanted to increase the depreciation timetable to 15 years, which would mean the track owner’s depreciation would be cut in half. The measure in the keeps the seven-year depreciation schedule for two years and would cost taxpayers $100 million.
2. A refund of excise taxes to Puerto Rico and the Virgin Islands for rum: A $13.50 per gallon excise tax is placed on rum imported into the United States. The measure extends to December 31, 2009, a refund of $13.25 per gallon tax back to Puerto Rico and the Virgin Islands, which are both U.S. territories. The refund has been in place since the early ’90s. The measure would cost taxpayers $192 million.
3. Income averaging for amounts received in connection with the Exxon Valdez litigation: The measure would allow the plaintiffs who won damages from Exxon Mobile for the oil spilled by the Exxon Valdez to average the award over three years rather than treating it as income in a single year. The measure was backed by Alaska Rep. Don Young and would cost taxpayers $49 million.
4. Secure rural schools and community self-determination program: The program replaces revenue rural communities used to enjoy from the sale of federal forest land. The measure is sponsored by lawmakers from Oregon and Idaho. The program would cost taxpayers $3.3 billion.
5. Deduction of state and local sales taxes: The measure allows citizens who do not pay state income taxes to deduct the amount of sales tax they pay over a year from their federal income tax for two additional years. States that benefit include Texas, Nevada, Florida, Washington and Wyoming. The measure would cost taxpayers $3.3 billion.
6. Provisions related to film and television productions: In order to keep movie production in the U.S., production companies would be allowed to deduct the cost of producing the films from their taxes. Rep. Diane Watson, D-California, has been one of the program’s biggest supporters. The measure would cost taxpayers $478 million over 10 years.
7. Extension and modification of duty suspension on wool products, wool research fund and wool duty refunds: The measure helps U.S. worsted wool fabric makers and clothing manufacturers. The bill extends provisions through 2014 or 2015 that were originally sponsored by Reps. Louise Slaughter, D-New York, and Melissa Bean, D-Illinois, in 2007. The measure would cost taxpayers $148 million.
8. Extension of economic development credit for American Samoa: The measure would extend for two years provisions meant to help economic development in the U.S. territory of American Samoa. The measure would cost taxpayers $33 million.
9. Transportation fringe benefit to bicycle commuters: The measure would allow employers to provide benefits to employees who commute to work via bicycle, such as help purchasing and maintaining a bicycle. The measure would cost taxpayers $10 million.

Source

Take a look at the film one (#6). That’s a gem if I ever saw one.

Here’s to nothing

As a Rep. or Senator put it the other day, we took a stance that some asshole on the Hill took without ever considering what other options we had. We are trying to fix a monetary problem by throwing huge amounts of money at it. I don’t know much about how our economy works but something tells me sinking $700+ billion into it from taxpayer wallets is NOT the answer.

Take this bill and slap on the AIG bailout, the cute stimulus checks we all got (how much did that work?), and the huge cuts in taxes that Bush doled out and you will easily see how we are in for one hell of a huge tax hike down the road.

Here is a basic principle that most American’s can’t get through their skull: when we are working on a deficit budget (we spend more than we make) we eventually have to pay all that money back. They only way for the government to pay back the money is to take more from us in taxes. So, when you dole out free money to people in the form of a stimulus check and a $700 billion bailout, we eventually get to pay that back. I am sure if someone called you and told you that the bailout meant you were going to have to shell out another $2,000+ in federal taxes you would reconsider how much of a good idea that is. Tack on the fact that the middle class is the one that is going to take the brunt of the whole thing and you should be down-right pissed.

So, next time you get huffy about the tax hike coming, remember it could have been avoided if you had just remembered one key principle: any money you take out must get put back. This should help you figure out why the dollar is damn-near worthless.

Losing faith

Like I said, I don’t know much about our economy but given the actions of the entire government over the past 8 years with respect to our economy, I think even a 4-year-old can pull down a better job. These guys don’t have a damn clue what is going on and think that pushing all of these bills onto American taxpayers is working (its not).

Call your Congressmen today or send them a letter and tell them “thanks for fucking me over”. They will probably send you a thank you letter in return, because they just got a shitload richer.