Reply from Senator Dodd: Economic Stabilizatio Actn

[Don]

Following was received from Senator Dodd, in response to an inquiry regarding the Senate Banking Committee:


SUMMARY OF THE "EMERGENCY ECONOMIC STABILIZATION ACT OF 2008"

I. Stabilizing the Economy:

The Emergency Economic Stabilization Act of 2008 (EESA) provides up to $700 billion to the Secretary of the Treasury to buy mortgages and other assets that are clogging the balance sheets of financial institutions and making it difficult for working families, small businesses, and other companies to access credit, which is vital to a strong and stable economy. EESA also establishes a program that would allow companies to insure their troubled assets.

II. Homeownership Preservation:
EESA requires the Treasury to modify troubled loans--many the result of predatory lending practices wherever possible to help American families keep their homes. It also directs other federal agencies to modify loans that they own or control. Finally, it improves the HOPE for Homeowners program by expanding eligibility and increasing the tools available to the Department of Housing and Urban Development to help more families keep their homes.

III. Taxpayer Protection:
Taxpayers should not be expected to pay for Wall Street's mistakes. The legislation requires companies that sell some of their bad assets to the government to provide warrants so that taxpayers will benefit from any future growth these companies may experience as a result of participation in this program. The legislation also requires the President to submit legislation that would cover any losses to taxpayers resulting from this program from financial institutions.

IV. No Windfalls for Executives:
Executives who made bad decisions should not be allowed to dump their bad assets on the government, and then walk away with millions of dollars in bonuses. In order to participate in this program, companies will lose certain tax benefits and, in some cases, must limit executive pay. In addition, the bill limits "golden parachutes" and requires that unearned bonuses be returned.

V. Strong Oversight:
Rather than giving the Treasury all the funds at once, the legislation gives the Treasury $250 billion immediately, then requires the President to certify that additional funds are needed ($100 billion, then $350 billion subject to Congressional disapproval). The Treasury must report on the use of the funds and the progress in addressing the crisis. EESA also establishes an Oversight Board so that the Treasury cannot act in an arbitrary manner. It also establishes a special inspector general to protect against waste, fraud and abuse.

VI. Increase in FDIC deposit insurance:
In order to help ease the burden of the credit crisis on small banks and their depositors, the legislation includes a provision that increases the size of bank deposits which are fully insured by the FDIC from $100,000 to $250,000 through December 31, 2009.

Tax Provisions in the Emergency Economic Stabilization Act

I. Alternative Minimum Tax (AMT):
The bill provides for protection from the AMT for 22 million taxpayers. Under the legislation the exempted income level would be raised to $46,200 for an individual and $69,950 for those who are married filing jointly for 2008. The bill also provides relief from the Incentive Stock Option (ISO) AMT.

II. Individual Extenders:
The legislation has a number of provisions to provide tax relief to individuals. Among them are: The Qualified Tuition Deduction, which allows qualifying taxpayers to deduct up to $4,000 for tuition expenses, and the Teacher Expense Deduction, which allows a deduction for teachers of up to $250 for classroom expenses. All of these provisions are extended through the end of 2009. The bill also extends the deduction for State and Local Property Taxes, which would be in effect through 2009. The threshold for families to be able to claim the $1,000 Child Tax Credit will also be lowered to $8,500 for tax year 2008.

II. Business Extenders:
The bill also includes a number of provisions that will reassure American businesses, and provide them with incentives to help them compete and innovate. It would extend the Research and Development (R&D) tax credit, as well as the 15-year Cost Recovery for Qualified Restaurant and Retail Equipment and the New Markets Tax Credit. These provisions would also be extended through 2009.

III. Disaster Relief:
Natural disasters like Hurricane's Ike and Gustav, as well as the 100 year floods in the Midwest have cost billions of dollars in damage, and cost many citizens their homes. To help these affected regions, this bill also includes tax incentives for rebuilding of communities and homes in these regions.

IV. Mental Health Parity:
The bill also includes the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008, which would require private insurance plans that offer mental health benefits must offer these benefits on par with medical-surgical benefits effective January 1, 2009.

V. Energy Tax Incentives:
Renewable energy technology development is critical for the future of our nation's environment, as well as our energy security. This bill incentivizes investment in this critical sector by extending the Production Tax Credit through 2009 for wind sources, and through 2010 for a number of other sources. It would also extend the Investment Tax Credit for solar energy property and fuel cells, as well as extending the Residential Energy-Efficient Property Credit, through to 2016, among other important incentives.

[cobra de capell]

Just stop spending, you buggerin' wanker!

[Don]

A different, non-political, perspective of the EESA 2008

" Ugh. A sad commentary on our political system. Here, without the lipstick, are some of the ugliest cuts from the pig:

An Oregon toy arrow maker gets a 39 cent per arrow exemption from an excise tax. Now should that have been part of this bill?

Now Hollywood filmmakers of all sizes (not just small ones) get a $15 million break for a movie made in the U.S. Think about that the next time you pay $9.50 to see a mediocre sequel.

The special seven-year depreciation perk for auto race tracks was extended for two years. Why?

Here's a stinker that sounds like a piece of good pork. If you were so unfortunate as to own Freddie or Fannie securities you could treat the loss as ordinary income (not subject to a $3,000 limit). But read on: It turns out it's just for banks who owned the securities -- not private investors."
[/i]

http://www.marketwatch.com/News/Stor...n0y6KIY4zvzfXA

[Smokingcobra2]

All i can say is DUMP DODD but this dumb a-- state will reelect him over and over again. joeg

[wtm442]

Originally Posted by Smokingcobra2

All i can say is DUMP DODD but this dumb a-- state will reelect him over and over again. joeg

Connecticut and Massachusetts .... we are tied at the hip. I'll trade you Kennedy and Kerry for Dodd any day. Hell, I'll even throw in Barney Frank as a dummy to be named later. A 3 for 1 trade you cannot refuse.

[Don]

Some additional background:

I initially contacted Senator Dodd asking specifically what the Senate Banking Committee had done since he was the Chairman over the past 20 months to prevent or minimize the current economic situation. You can form your own opinion if my question was answered:

" The economy of the United States is facing its most serious challenge in generations. The turmoil that began in the housing market has spread throughout our financial markets, and has forced the Federal Reserve, the Treasury Department, and other Federal agencies to act in unprecedented ways to safeguard our nation's economy.

The root cause of this crisis is the lax underwriting of mortgages and slow response from regulatory agencies to address it. This crisis of confidence is threatening the financial future of our fellow citizens. Over 9,800 per day find themselves facing foreclosure, wages have dropped, food and fuel prices have increased, and over 760,000 jobs have been lost since January 2008. On September 29, 2008 the Dow Jones Industrial Average dropped a staggering 778 points-the largest single day drop ever. Over the past year, the Dow has fallen by approximately forty percent. Millions of Americans have seen their hard-earned retirement investments shrink precipitously. If this crisis is allowed to continue, these same hard-working, middle-class Americans will find it increasingly difficult to be able to send their children to college. Because of the unprecedented threat posed by this crisis to our economy and way of life, I believe that unprecedented action by Congress is required to address this crisis. The Emergency Economic Stabilization Act (EESA) would take that action by authorizing the Secretary of the Treasury to purchase troubled assets and other financial instruments in an effort to expand the flow of credit to American households and businesses. In addition, the bill protects taxpayers in a variety of ways, including by strictly limiting golden parachutes and other forms of excessive pay for executives whose companies benefit from the EESA; giving taxpayers a share of the profits in any companies helped under the EESA; helping deserving homeowners avoid foreclosure; and requiring stringent oversight and reporting so that taxpayers' money is spent as wisely and carefully as possible. I have enclosed a summary of the Emergency Economic Stabilization Act, which passed the Senate on October 1, 2008 for your review. "

[wtm442]

Originally Posted by Don

Some additional background:

I initially contacted Senator Dodd asking specifically what the Senate Banking Committee had done since he was the Chairman over the past 20 months to prevent or minimize the current economic situation. You can form your own opinion if my question was answered:

blah, blah, blah ad nauseam ...

He could have said "absolutely nothing" and saved a lot of ink.

[Dan40]

Here is an interesting fact from the Bureau of Engraving and Printing. This in response to a question I asked them.

The total DOLLARS [all denominations] in circulation WORLDWIDE is just under $790 BILLION. The total money they have printed SINCE 1862, just UNDER $850 BILLION.

So the total REAL money out there is just $90 billion more than the $700 billion our wonderful ELECTED dolts voted to give away in one swell poop.

And I don't even want to think about our $10 TRILLION nat. debt considering we took 146 years to print $850 billion.

Can I buy a house on Boardwalk?

Dan

[J. T. Toad]

Dodd - Public Enemy Number 1.

"V. Energy Tax Incentives:
Renewable energy technology development is critical for the future of our nation's environment, as well as our energy security. This bill incentivizes investment in this critical sector by extending the Production Tax Credit through 2009 for wind sources, and through 2010 for a number of other sources. It would also extend the Investment Tax Credit for solar energy property and fuel cells, as well as extending the Residential Energy-Efficient Property Credit, through to 2016, among other important incentives."


Just like a meth addict, People are so blind to truth, when feels so good.

[Smokingcobra2]

And today or LIBERAL paper endorsed re-election of every democrat running for office and im sure when Dodd comes up again the will endores the crook. Yesterday Dodd said he would wait till the federal investigation to clear before he gives us info on his loan.
WHY DO DEMS keep voting guys like him and kerry and kennedy back in. I JUST DONT GET IT.
joeg

[Don]

Christopher Dodd
(CLOE POISSON / HARTFORD COURANT / October 21, 2008)

" Sen. Chris Dodd explains to reporters at the Institute of Living that he is waiting for the conclusion of the Senate ethics inquiry before he releases documents relating to two mortgages he received from Countrywide Financial. He denied any wrongdoing. He was at IOL to speak on the recent passage of mental health parity legislation " .

Pictures:

http://www.courant.com/news/politics...2.photogallery

Press Conference Video:

http://www.courant.com/video/?slug=hc-doddinterview-wn

[Cobrabill]

Originally Posted by Smokingcobra2

And today or LIBERAL paper endorsed re-election of every democrat running for office and im sure when Dodd comes up again the will endores the crook. Yesterday Dodd said he would wait till the federal investigation to clear before he gives us info on his loan.
WHY DO DEMS keep voting guys like him and kerry and kennedy back in. I JUST DONT GET IT.
joeg

I left that sh!t-hole of a state in '86.My only regret was not doing it 20 years earlier.Dodd is a Titanic size turd.