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Stimulus: Home, Car Buyers Win, States Lose

Pay, bonuses restricted for employees of TARP firms

By Nick McMaster,  Newser Staff

Posted Feb 10, 2009 4:48 PM CST

(Newser) – The $835 billion stimulus plan approved by the Senate today helps out home builders, manufacturers, and buyers of homes and cars, reports the Wall Street Journal. The bill allows manufacturers and construction firms to use any 2008 and 2009 losses to offset tax liability going back as far as 2003. Car and home buyers get tax breaks under the measure, the latter credit amounting to $15,000.

State governments are among the big losers: Senators cut a fund for bailing out insolvent state budgets to $39 billion from $79 billion in the House version. Prominent employees of firms receiving government funds also look set to lose. One amendment bans bonuses for the 25 highest-paid employees at any TARP-assisted firm; another sets a $400,000 maximum on salary—the same as the president's—for any employee. And, of course, all this could change in House negotiations.

President Barack Obama gestures during a town hall meeting to discuss the economy, Tuesday, Feb. 10, 2009, at the Harborside Events Center in Fort Myers, Fla.
President Barack Obama gestures during a town hall meeting to discuss the economy, Tuesday, Feb. 10, 2009, at the Harborside Events Center in Fort Myers, Fla.   (AP Photo/Alan Diaz)
Senate Majority Leader Harry Reid of Nev. talks to reporters on Capitol Hill in Washington, Tuesday, Feb. 10, 2009, after the Senate passed the stimulus bill, Tuesday, Feb. 10, 2009.
Senate Majority Leader Harry Reid of Nev. talks to reporters on Capitol Hill in Washington, Tuesday, Feb. 10, 2009, after the Senate passed the stimulus bill, Tuesday, Feb. 10, 2009.   (AP Photo/J. Scott Applewhite)
Senate Minority Leader Mitch McConnell of Ky. talks to reporters on Capitol Hill in Washington, Tuesday, Feb. 10, 2009, after the Senate passed the stimulus bill.
Senate Minority Leader Mitch McConnell of Ky. talks to reporters on Capitol Hill in Washington, Tuesday, Feb. 10, 2009, after the Senate passed the stimulus bill.   (AP Photo/J. Scott Applewhite)
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COMMENTS
Showing 3 of 12 comments
AClotfelter
Feb 11, 2009 6:59 AM CST
It's a win-win for them, because there is absolutely no way that this will turn around the economy... it isn't meant to.... it's to try and stabilize and soften the blow, but things will still be bad, and they can say "I told you so"
DeniseVB
Feb 11, 2009 6:17 AM CST
I already own a car and home. I bought them the old fashioned way, by qualifying for the loans. Will I get a piece of the pie? Meh.
Snowleopard
Feb 11, 2009 6:07 AM CST
I agree with most of what you said, but I don't think it's win-win for the GOP. If America starts investing again in infrastructure, education, and healthcare, and this bill really works, then their ideaology will be shown as hollow. They are afraid to have a retest of New Deal style spending.

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