Stimulus Plan Repeals Big Tax Break for Banks

[Eugene]

Source: Associated Press

Stimulus Plan Repeals Big Tax Break for Banks
House stimulus package would repeal tax break
that provided billions to banks

By STEPHEN OHLEMACHER Associated Press Writer
WASHINGTON January 17, 2009 (AP)

House Democrats' version of the $825 billion recession
rescue package would end billions of dollars in tax
breaks the Bush administration quietly gave to banks
last fall.

Already almost exclusive beneficiaries of a $700 billion
Wall Street bailout, banks are largely left out of the
House stimulus package that President-elect Barack
Obama wants passed quickly through Congress. Those
getting financial bailout money wouldn't even be
eligible for one of the main business tax breaks aimed
at priming the economic pump.

Homebuilders, manufacturers, retailers and low-income
families share the bulk of the $275 billion in proposed
new tax cuts.

House leaders moved this week to repeal the tax break
for banks even as the Senate voted to help many of
those same institutions by releasing the second $350
billion of the widely unpopular Wall Street bailout.
Many lawmakers are unhappy with the results after the
Bush administration spent the first $350 billion, making
them wary of helping banks in the stimulus package.

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