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Jamie Dupree

The Bailout Bill's Fine Print

By
Jamie Dupree
@ October 2, 2008 12:00 AM
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A bailout bill that started as a three page measure from the Bush Administration has now ballooned to 451 pages, as the Senate last night approved its own version of a Wall Street rescue package, which now goes to the House.

There don't seem to be any major things that have been slipped into this bill in terms of pork barrel projects or anything. But the fine print raises a few questions.

Section 403 is one of them. "Broker reporting of customer's basis in securities transactions," is the dry description.

This is a way to raise revenue, by having brokers report to the federal government when you buy and sell stocks, basically to make sure that you aren't lying your pants off about what your real profits or losses turned out to be.

A study last year estimated that it would bring in well over 3 billion dollars over 6 years in tax revenue that's currently "under the radar" so to speak.

Wall Street has never liked the idea, but they haven't said a word about it this week - mainly because they are probably more focused on survival.

Next to catch my eye was Section 503, "Exemption from excise tax for certain wooden arrows designed for use by children."

I'm not making this up. It's on pages 300 and 301 of the bill.

"Subparagraph (A) shall not apply to any shaft consisting of all natural wood with no laminations or artificial means of enhancing the spine of such shaft," the language states, adding that it does not apply to arrows less than 5/16 inch in diameter.

This provision tracks a bill that was introduced earlier this year by both Senators from Oregon. Evidently the excise tax on these children's arrows is more than the price of the arrows.

The Washington Times reported that some nine U.S. manufacturers would be
affected by this provision.

If that makes you want to have a drink, then maybe Section 308 of the tax extenders part of the bill is for you.

"Increase in limit in cover over of rum excise tax to Puerto Rico and the Virgin Islands," is Section 308.

Section 317 grants a "Seven-year cost recovery period for Motorsports Racing Track Facility."

It's not clear where this race track is. Maybe the internet can clear that up.

Did I mention the extension of the economic development credit for American Samoa?

You get the picture.



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