Sweeteners Entice Lawmakers Back to Bailout Plan

Associated Press (10/02/08); Taylor, Andrew; Fram, Alan
Supporters of the $700 billion rescue plan are taking a second pass at the House lawmakers who voted against it earlier this week, especially after the Senate approved a modified version of the plan with $120 billion in sweeteners attached. The various incentives are mostly tax measures, ranging from energy-related provisions and business tax breaks to a one-year fix of the alternative minimum tax for natural disaster victims. A provision added by the Senate that would allow taxpayers to deduct state and local sales taxes is a highly popular idea in such states as Florida and Texas, while some GOP legislators are excited about a boost in Federal Deposit Insurance Corp. limits from $100,000 to $250,000 and new accounting rules that ease bank liquidity. However, many House lawmakers still see this as an unprecedented bailout of Wall Street and are unlikely to change their position.