Public Law 110-343


Public Law 110-343

Public Law 110-343 (known as H.R. 1424 prior to enactment) is an Act of Congress signed into law by U.S. President George W. Bush on October 3, 2008. [http://www.whitehouse.gov/news/releases/2008/10/20081003-17.html White House Press Release] October 3, 2008.] [ [http://energypriorities.com/entries/2008/10/ptc_itc_extension_2008.php Energy Priorities] ]

The 451 page law created a $700 billion dollar Troubled Assets Relief Program under the Emergency Economic Stabilization Act of 2008 (), and also enacted the Energy Improvement and Extension Act of 2008 (), Tax Extenders and Alternative Minimum Tax Relief Act of 2008 (), which also included the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008, and the Heartland Disaster Tax Relief Act of 2008. cite news | first= | last= | coauthors= | title= H.R.1424 | date= 2008-10-01 | publisher= Library of Congress | url = http://thomas.loc.gov/cgi-bin/bdquery/z?d110:HR1424: | work = THOMAS | pages = | accessdate = 2008-10-01 (Access to legislative history of H.R. 1424)] USPL|110|343]

Legislative history

The first version of the Emergency Economic Stabilization Act of 2008 (structured as an amendment to USBill|110|H.R.|3997) was rejected by the House of Representatives on September 29.

After its defeat, Senate leaders decided to amend an existing bill from the House in order to circumvent the revenue origination clause of U.S. Constitution, and chose H.R. 1424 as the vehicle for the the legislation. cite news | first=Robert | last= Pear | coauthors= | title= Crisis Puts Tax Moves Into Play | date= | publisher= | url = http://www.nytimes.com/2008/10/02/business/02tax.html | work = New York Times | pages = | accessdate = 2008-10-05 | quote = The House jealously guards its power to originate tax bills. The Constitution says, “All bills for raising revenue shall originate in the House of Representatives; but the Senate may propose or concur with amendments as on other bills.” The Senate version of the bailout package is technically an amendment to a House bill that would require group health insurance plans to provide equivalence, or parity, in the coverage of mental and physical illnesses.] ] ] ] H.R. 1424 was sponsored by United States House Representative Patrick J. Kennedy.

On September 30, 2008, Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell announced the proposed draft had been formalized for the amendment that would transform H.R. 1424 into the Senate version of the Emergency Economic Stabilization Act of 2008.] cite web |url=http://money.cnn.com/2008/09/30/news/economy/bailout_tuesday/?postversion=2008100104
title=Bailout: Senate to vote Wednesday |publisher=CNNMoney.com |date=2008-10-01
] []

On October 1, 2008, the amendment to H.R. 1424 was approved by a vote of 74 to 25, and the entire amended bill was passed by 74 to 25, (with one not voting, the cancer-stricken Senator Ted Kennedy). The bill was returned to the House for consideration. cite news | first= Carl | last= Hulse | coauthors= David M. Herszenhorn | title= Adding Sweeteners, Senate Passes Bailout Plan | date= 2008-10-01| publisher= | url = http://www.nytimes.com/2008/10/02/business/02bailout.html?hp=&adxnnlx=1222912061-mO3gwPp%20F69CybU450tXvQ&pagewanted=all | work = New York times | pages = | accessdate = 2008-10-01 ] United States Senate. 110th Congress (2nd Session) [http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=110&session=2&vote=00213 Roll call vote #213] ] On October 3, 2008, the bill as passed by the Senate was accepted by a vote of 263 to 171. Every member of the House voted, though the House has a vacant seat of the recently-deceased Stephanie Tubbs Jones of Ohio. President George W. Bush signed the bill into law a few hours later. ] United States House of Representatives. 110th Congress (2nd Session) [http://clerk.house.gov/cgi-bin/vote.asp?year=2008&rollnumber=681 Vote Number 681] ]

Emergency Economic Stabilization Act of 2008

The Emergency Economic Stabilization Act of 2008 is formally "An Act To provide authority for the Federal Government to purchase and insure certain types of troubled assets for the purposes of providing stability to and preventing disruption in the economy and financial system and protecting taxpayers, to amend the Internal Revenue Code of 1986 to provide incentives for energy production and conservation, to extend certain expiring provisions, to provide individual income tax relief, and for other purposes."

The Act is a part of an effort to bailout firms holding mortgage-backed securities in an attempt to restore liquidity to the credit markets. []

Energy Improvement and Extension Act of 2008

The Energy Improvement and Extension Act of 2008 contains a new tax credit for plug-in hybrid electric vehicles for less than a year after the first 250,000 are sold. The credit is a base $2,500 plus $417 for each kWh of battery pack capacity in excess of 4 kWh to a maximum of $15,000 for any vehicle with a gross vehicle weight rating of more than pounds|26000 [http://www.calcars.org/calcars-news/1008.html] .

It also extends for ten additional years existing tax credits for renewable energy initiatives, including cellulosic ethanol and biodiesel development, and wind, solar, geothermal and hydro-electric power. [http://blogs.edmunds.com/greencaradvisor/2008/10/plug-in-tax-credits-hitching-ride-on-wall-street-bail-out-bill.html] It establishes electricity as a clean-burning fuel for tax purposes.

Tax Extenders and Alternative Minimum Tax Relief Act of 2008

The Tax Extenders and Alternative Minimum Tax Relief Act includes $100 billion in tax breaks for businesses and the middle class, plus a provision to raise the cap on federal deposit insurance from $100,000 to $250,000.cite web
url=http://ap.google.com/article/ALeqM5ioHc80xKMiATnqCpK0cDKJzk_nPQD93IF4P80
title=Bush lobbies Congress to pass $700B bailout bill
first=Charles
last=Babington
coauthors=Julie Hirsschfeld Davis
publisher=Associated Press
date=2009-10-02
]

The bill keeps the alternative minimum tax from hitting 20 million middle-income Americans. It provides $8 billion in tax relief for those hit by natural disasters in the Midwest, Texas and Louisiana.

As a whole, the Senate tax package would cost $150.5 billion over 10 years. Roughly $43.5 billion would be offset by several revenue-raising provisions. Hedge fund managers would be forbidden from using offshore corporations to defer paying taxes.

The bill freezes a tax deduction that oil and gas companies get for certain domestic production activities. The deduction, now 6 percent, is scheduled to rise to 9 percent in 2010.

The provisions of the tax bill included:] cite news|author=Hulse, Carl and Pear, Robert| title= Senate to Vote Today on the Bailout Plan |url=http://www.nytimes.com/2008/10/02/business/02bailout.html |date=2008-10-01 |work=New York Times |publisher= |accessdate=2008-10-01 ] cite news | first= Carl | last= Hulse | coauthors= David M. Herszenhorn | title= Adding Sweeteners, Senate Passes Bailout Plan | date= 2008-10-01| publisher= | url = http://www.nytimes.com/2008/10/02/business/02bailout.html?hp=&adxnnlx=1222912061-mO3gwPp%20F69CybU450tXvQ&pagewanted=all | work = New York times | pages = | accessdate = 2008-10-01 ]

*A temporary increase in FDIC deposit insurance limit from $100,000 to $250,000 until December 2009 []
*Tax breaks for businesses
*Tax credits for the use of alternative energy and plug-in hybrids
*Tax credits for research and development
*Expansion of the child tax credit
*Protection from the Alternative Minimum Tax
*Tax reductions for victims of severe weather (e.g. tornadoes, floods, hurricanes)
*Extension of unemployment insurance
*A USD $1,000 tax credit for low income homeowners
*Tax breaks and credit extensions for the following:
**"Certain wooden arrows designed for use by children" (Sec 503) [http://www.nytimes.com/2008/10/03/business/03sweetener.html?ref=business]
**Wool research (Sec. 325)
**Film and television productions (Sec. 502)
**Litigants in the 1989 Exxon-Valdez oil spill (Sec. 504)
**Virgin Island and Puerto Rican rum (Section 308)
**American Samoa (Sec. 309)
**Mine rescue teams (Sec. 310)
**Mine safety equipment (Sec. 311)
**Domestic production activities in Puerto Rico (Sec. 312)
**Indian tribes (Sec. 314, 315)
**Railroads (Sec. 316)
**Auto racing tracks (317)
**District of Columbia (Sec. 322)

Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008

The Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 mandates that U.S. health insurance companies provide equal coverage for conditions such as psychological disorders, alcoholism, and drug addiction. [cite web|url=http://www.chron.com/disp/story.mpl/editorial/6043529.html|title=Equal treatment: A bailout law bonus — equal coverage for mental and physical illness|date=2008-10-06|work=Houston Chronicle] [cite news | first=Aaron | last=Glantz | coauthors= | title=U.S. Insurers Told to Cover Mental Health Equally | date=2008-10-07 | publisher= | url =http://us.oneworld.net/places/yemen/-/article/357889-insurers-required-cover-mental-health-equally | work =OneWorld | pages = | accessdate = 2008-10-08 | language = ]

Cost

The bill includes language to increase the statutory limit on the public debt to US$ 11.3 trillion. cite news | first= | last= | coauthors= | title= H.R.1424 | date= 2008-10-03 | publisher= Library of Congress | url = http://thomas.loc.gov/cgi-bin/bdquery/z?d110:HR1424: | work = THOMAS | pages = | accessdate = 2008-10-03 (Access to legislative history of H.R. 1424)]

Reception

Journalists and critics commented that portions of the bill contained earmarks and pork barrel spending. [cite web|title=Bailout bill brings home the bacon|url=http://www.newsday.com/services/newspaper/printedition/saturday/news/ny-bzpork045869383oct04,0,7415762.story|publisher=Newsday|first=James|last=Bernstein|date=2008-10-04] [cite web|url=http://voices.washingtonpost.com/the-trail/2008/10/03/with_bailout_vote_mccain_voted.html?hpid=topnews|title=With Bailout Vote, McCain Voted for Earmarks|first=Michael|last=Shear|publisher=Washington Post|date=2008-10-03] [cite web|url=http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/10/03/MNR813AHDN.DTL|title=Billions in earmarks in Senate's bailout bill|first=Zachary|last=Coile|publisher=San Francisco Chronicle|date=2008-10-03] [cite web|url=http://baltimorechronicle.com/2008/092908Lendman.shtml|title=Grand Theft America|publisher=Baltimore Chronicle|first=Stephen|last=Lendman] [cite news | first=Jim | last=Popkin | coauthors= | title=Critics say bailout bill is stuffed with billions in pork | date=2008-10-03 | publisher=MSNBC | url =http://deepbackground.msnbc.msn.com/archive/2008/10/03/1489413.aspx | work = | pages = | accessdate = 2008-10-04 | language = ] [cite news | first=Sara | last=Kugler | coauthors= | title=McCain struggles to explain support for bailout | date=2008-10-02 | publisher=Google News | url =http://ap.google.com/article/ALeqM5guE0JhhcEZtoFThYoT1S3gx9bh_AD93IS9401 | work =Associated Press | pages = | accessdate = 2008-10-04 | language = ]

References

External links

* [http://thomas.loc.gov/cgi-bin/bdquery/z?d110:H.R.1424: H.R. 1424] at the "Library of Congress"
* [http://banking.senate.gov/public/_files/latestversionAYO08C32_xml.pdf Complete text of H.R. 1424]
* [http://www.govtrack.us/congress/vote.xpd?vote=h2008-101 House vote on H.R. 1424]


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