Our US Senators have approved [1] a version of the $700 Billion Bail-out Bill that provides some new features:
- New tax breaks for businesses
- Raising the FDIC deposit insurance limit from $100,000 to $250,000
Normally, I am all about tax breaks for businesses. I think that is one of the best ways to stimulate growth.
And without a doubt, raising the FDIC limit will help so many… almost rich people. Okay, pretty much just really rich people. I don’t even know anyone that has close to the $100,000 limit in a protected bank instrument, so I’m having a hard time understanding who benefits from this. Maybe someone like Warren Buffet or Dan Rather, but not anyone I know. I take that back, Buffet would have that kind of money invested somewhere that gets a decent return, not a bank I don’t think.
And here’s the real problem. The Senate bill also turned into a small Christmas Tree, including this (WSJ [1]):
Another provision added by the Senate would require most employers and health insurers to put mental health problems on par with physical illnesses, including coverage for hospital stays and doctor visits as well as co-payments and deductibles. The legislation has been in the works for the past decade, and the Senate and House have passed similar measures. But the two chambers haven’t cleared one version to send to President Bush.
I will be shocked if this bill passes the House. It amazes me that Senators think that making it more attractive for other reasons will get the bill passed and not make a lot of Americans really mad.
Here’s the roll call [2]. Both of the Iowa Senators voted in favor. I’m disappointed in Grassley.