Wednesday, October 01, 2008

Senate Includes Tax Cuts in Bailout

My first reaction to this was horror. I would have preferred taking advantage of the House Republicans to push through a new plan based on public equity stakes in banks. At least some progressive add ons to get Democrats in the House united and to make the bill popular.

Now, however, the Senate Democrats have decided to cave as always adding tax cuts not directed at the poor to the plan.

Still the tax cuts don't sound all that horrible and a recession year is a reasonable time for tax cuts

The Senate proposal would cost more than $100 billion and extend and expand many individual and business tax breaks, including tax credits for the production and use of renewable energy sources, like solar energy and wind power.

The bill would also extend the business tax credit for research and development, expand the child tax credit, protect millions of families from the alternative minimum tax and provide tax relief to victims of recent floods, tornadoes and severe storms.

I have no problem with that so long as the AMT patch is temporary (linking progressive measures to this years AMT patch is a key tool against Republican filibusters).

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