
On Wednesday, The Big Money published some of the goodies in the 451-page Emergency Economic Stabilization Act of 2008 that seemed neither stabilizing nor responding to an emergency. While there were two major nonbailout tax measures included in the bill (changing the alternative-minimum-tax thresholds and revamping alternative-energy tax credits), a number of other, more arcane measures snuck in. Like a lot of omnibus bills, it's hard to detect whose hand was behind which provisions. For the record, Daniel Virkstis of the Senate finance committee majority staff told The Big Money that the first four of the five listed here are "provisions in current law that [are] being extended" and are not earmarks. All estimated costs are from the Senate finance committee's analysis of the provisions.
Rum: Section 308: "Increase in limit on cover over of rum excise tax to Puerto Rico and the Virgin Islands."
What does it do? Travelers to some of the United States' finest territories can now help the local economy for a bit longer. The entire excise duty on imported distilled spirits from Puerto Rico and the U.S. Virgin Islands ($13.50 per proof gallon) will get passed on to these islands' administrations until the end of 2009; the duty was due to be cut to $10.50 per proof gallon at the end of this year.
Who put it in? Unclear. As with American Samoa (see next item), neither of these territories has Senate representation.
How much will it cost? $192 million over 10 years.
Help a neglected archipelago: Section 309: "Extension of economic development credit for American Samoa."
Karim Bardeesy extracted the best baloney from the bailout bill.
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Line Item Veto
This seems like the penultimate argument for giving presidents a line item veto.