Public Law 110-343

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This article is about the legislative bill subsequently enacted law. For its best-known division, see Emergency Economic Stabilization Act of 2008. For the related program, see Troubled Assets Relief Program.
President George W. Bush delivers a statement at the White House regarding the economic rescue plan

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.[1][2]

The 451 page law created a $700 billion dollar Troubled Assets Relief Program under the Emergency Economic Stabilization Act of 2008 (division A), and also enacted the Energy Improvement and Extension Act of 2008 (division B), Tax Extenders and Alternative Minimum Tax Relief Act of 2008 (division C), 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.[3][4]

Legislative history

The first version of the Emergency Economic Stabilization Act of 2008 (structured as an amendment to 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 a procedure that critics charge was used circumvent the revenue origination clause of U.S. Constitution, and chose H.R. 1424 as the vehicle for the the legislation.[5][6][7][8] H.R. 1424 was sponsored by United States House Representative Patrick J. Kennedy.[3]

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.[9][10][11]

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.[12][13] 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.[14][15]

Emergency Economic Stabilization Act of 2008

Main articles: Emergency Economic Stabilization Act of 2008 and Troubled Assets Relief Program

It 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 improve the liquidity of markets for mortgage-backed securities, and the liquidity and solvency of firms that hold such securities; the effort is termed by many as a "bailout."[16]

Energy Improvement and Extension Act of 2008

The Energy Improvement and Extension Act of 2008 contains a tax credit for plug-in hybrid electric vehicles, that are higher than either Presidential candidate has proposed. 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 GVW of more than Template:Pounds [17].

It also extends existing tax credits for renewable energy initiatives, including cellulosic ethanol and biodiesel development, and wind, solar, geothermal and hydro-electric power.[18].

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.[19]

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.[19]

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.[5]

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.[5]

The provisions of the tax bill included: [20][21][12]

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.[4][23][24]

Cost

The bill includes language to increase the statutory limit on the public debt to US$ 11.3 trillion.[3]

Reception

Journalists and critics commented that portions of the bill contained earmarks and pork barrel spending.[25][26][27][28][29][30]

References

  1. ^ White House Press Release October 3, 2008.
  2. ^ Energy Priorities
  3. ^ a b c "H.R.1424". THOMAS. Library of Congress. 2008-10-01. Retrieved 2008-10-01. {{cite news}}: Cite has empty unknown parameter: |coauthors= (help) (Access to legislative history of H.R. 1424) Cite error: The named reference "LOC-THOMAS-HR1424" was defined multiple times with different content (see the help page).
  4. ^ a b Pub. L.Tooltip Public Law (United States) 110–343 (text) (PDF)
  5. ^ a b c Pear, Robert. "Crisis Puts Tax Moves Into Play". New York Times. Retrieved 2008-10-05. 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. {{cite news}}: Cite has empty unknown parameter: |coauthors= (help)
  6. ^ "Calendar of Business: Wednesday, October 1, 2008 (Legislative Day, September 17, 2008)" (PDF). Calendar of the United States Senate. Clerk of the United States Senate / Government Printing Office. 2008-10-01. Retrieved 2008-10-01. {{cite news}}: Cite has empty unknown parameter: |coauthors= (help)
  7. ^ Rushing, J. Taylor (2008-10-01). "Senate easily passes bailout". The Hill. Retrieved 2008-10-05. The Senate's action was a dramatic and rare move that circumvented a constitutional requirement that tax legislation must originate in the House
  8. ^ Mulligan, John E. (2008-10-02). "Kennedy's unintended role in history". The Providence Journal. Once the Senate added those provisions to the rescue bill, it qualified as a tax bill, which the upper chamber is constitutionally prohibited from originating. In order to get around the Constitution, the leaders turned to the time-honored stratagem of finding a live but dormant House bill — [Patrick] Kennedy's mental-health parity bill — to use as a shell. {{cite news}}: Text "accessdate 2008-10-02" ignored (help)
  9. ^ Ives, Benton (2008-10-01). "Senate Bailout Vote Will Put House on Spot Again". QQ Politics. Congressional Quarterly. {{cite web}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
  10. ^ "Bailout: Senate to vote Wednesday". CNNMoney.com. 2008-10-01.
  11. ^ "Obama, McCain stress urgency of bailout vote". CNN. 2008-10-01.
  12. ^ a b Hulse, Carl (2008-10-01). "Adding Sweeteners, Senate Passes Bailout Plan". New York times. Retrieved 2008-10-01. {{cite news}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
  13. ^ United States Senate. 110th Congress (2nd Session) Roll call vote #213
  14. ^ Burdick, Dave (2008-10-03). "House Bailout Bill Friday Vote: YEA - 263, NAY - 171". Huffington Post. Retrieved 2008-10-03. {{cite news}}: Cite has empty unknown parameter: |coauthors= (help)
  15. ^ United States House of Representatives. 110th Congress (2nd Session) Vote Number 681
  16. ^ Bardeesy, Karim (2008-10-02). "Bailout Baloney: What do wooden children's arrows have to do with the credit crisis?". The Big Money.
  17. ^ http://www.calcars.org/calcars-news/1008.html
  18. ^ http://blogs.edmunds.com/greencaradvisor/2008/10/plug-in-tax-credits-hitching-ride-on-wall-street-bail-out-bill.html
  19. ^ a b Babington, Charles (2009-10-02). "Bush lobbies Congress to pass $700B bailout bill". Associated Press. {{cite web}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
  20. ^ Abrams, Jim (2008-10-01). "Stalled tax relief bill attached to rescue package". Associated Press. Retrieved 2008-10-01. {{cite news}}: Cite has empty unknown parameter: |coauthors= (help)
  21. ^ Hulse, Carl and Pear, Robert (2008-10-01). "Senate to Vote Today on the Bailout Plan". New York Times. Retrieved 2008-10-01.{{cite news}}: CS1 maint: multiple names: authors list (link)
  22. ^ Orszag, Peter R. (October 1, 2008). "CBO's Analysis of Dodd Substitute Amendment for H.R. 1424" (PDF). Congressional Budget Office. p. 2. Retrieved 2008-10-03.
  23. ^ "Equal treatment: A bailout law bonus — equal coverage for mental and physical illness". Houston Chronicle. 2008-10-06.
  24. ^ Glantz, Aaron (2008-10-07). "U.S. Insurers Told to Cover Mental Health Equally". OneWorld. Retrieved 2008-10-08. {{cite news}}: Cite has empty unknown parameter: |coauthors= (help)
  25. ^ Bernstein, James (2008-10-04). "Bailout bill brings home the bacon". Newsday.
  26. ^ Shear, Michael (2008-10-03). "With Bailout Vote, McCain Voted for Earmarks". Washington Post.
  27. ^ Coile, Zachary (2008-10-03). "Billions in earmarks in Senate's bailout bill". San Francisco Chronicle.
  28. ^ Lendman, Stephen. "Grand Theft America". Baltimore Chronicle.
  29. ^ Popkin, Jim (2008-10-03). "Critics say bailout bill is stuffed with billions in pork". MSNBC. Retrieved 2008-10-04. {{cite news}}: Cite has empty unknown parameter: |coauthors= (help)
  30. ^ Kugler, Sara (2008-10-02). "McCain struggles to explain support for bailout". Associated Press. Google News. Retrieved 2008-10-04. {{cite news}}: Cite has empty unknown parameter: |coauthors= (help)

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