Digesting the Bailout Baloney

Digesting the Bailout Baloney

Inside five bizarre provisions in the bailout bill.

Posted Friday, October 3, 2008 - 11:23am

What does it do? For those who are concerned, it's a long-welcome corrective that had had hit church camps and kids recreational programs hard. Archery Trade Association CEO and President Jay McAninch told The Big Money that a flat tax (now at 43 cents) was placed on all American arrows in 2004 after the IRS feared a percentage tax might not be trade-treaty compliant. But children's wooden arrows are cheap; in some cases, the tax was more than the cost of the arrow. So how to help the kids? The Senate bill exempts these wooden arrows from the 43-cent tax.

Who put it in? Sen. Ron Wyden introduced an identical bill (joined by Sen. Gordon Smith) back in 2007. Jennifer Hoelzer, Wyden's spokeswoman, told The Big Money that this provision was not put in at Wyden's request. (He actually voted against the bailout package on Wednesday.) Smith's office did not return calls for comment. Conveniently, some of these wooden children's arrows are made in Oregon, whose senators are Wyden and Smith. McAninch, of the archery association, said that while he'd been working with Congress on the issue, he had no idea this would be in the bill, and he admits that's it not the most urgent national economic situation. But he's not done yet; while "any shaft consisting of all natural with no laminations or artificial means of enhancing the spine" is covered, McAninch still wants to see similar hollow and fiberglass arrows be made exempt, too.

How much does it cost? $2 million over 10 years.

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Line Item Veto

This seems like the penultimate argument for giving presidents a line item veto.

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