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The Wooden Arrow Bailout
By David Knowles
Oct 2nd 2008 8:20AM
Filed Under:eRepublicans, John McCain, Breaking News, Economy, Taxes
While Senators should be applauded for finally recognizing that America's financial system is on the brink, one can't help but wonder why in the world they included a provision to protect a company that makes children's toy arrows into the bailout bill. Did they think no one would notice the pork added to what is probably the most important bill of a lifetime? Amazing (via Bloomberg):
Senators attached a provision repealing a 39-cent excise tax on wooden arrows designed for children to an historic $700 billion financial-markets rescue that passed tonight by a vote of 74-25. The provision, originally proposed by Oregon senators Ron Wyden [D] and Gordon Smith [R], will save manufacturers such as Rose City Archery in Myrtle Point, Oregon, about $200,000 a year.
It's one of dozens of tax breaks benefiting Hollywood producers, stock-car racetrack owners and Virgin Islands rum-makers included in the broader legislation in an effort to win support from House Republicans, whose defection contributed to a rejection of an earlier version of the legislation two days ago on a 228-205 vote.
Really? So we couldn't cobble together a majority for the bill unless it included a sizable helping of pork? That doesn't sound like putting "country first." And what does John McCain have to say about it? He, like Barack Obama, voted for the bill, after all.
A spokesman for House Minority Leader, Republican John Boehner said the following of the last minute add-ons:
the inclusion of the tax breaks "will increase the appeal of the package for our members."
I wish I could tell you that I was making all of this up. This is just the kind of thing that makes the public so cynical about Washington's ability to do what's right. And there is a lot about the Senate bill that is right. It significantly raises the FDIC insurance level to compensate for inflation, and extends a whole host of tax credits to ordinary citizens. Most importantly, the bill infuses capital into the financial sector, which, hopefully, will have the effect of loosening the credit noose somewhat.
Unfortunately, we now have to wait to see what pet projects the House will attempt to tack on. Many of these so-called "sweeteners" are sure to leave a bitter taste for many people in the country.
Liza has more, including a PDF of the final bill for your inspection.
