Politics

Truth In Politics: Price Of Political Agreement

CHICAGO (CBS) ― The biggest bill in U.S. history passed the Senate Wednesday night - but, at an added cost to taxpayers as lawmakers add items to draw votes in the House. CBS 2 Political Editor Mike Flannery reports that they added more than an additional $100 billion. It's the price of political agreement on Capitol Hill.

To view the entire 451-page plan, click here.

Twenty-million middle class Americans are now among bailout bill beneficiaries. It adjusts the so-called alternative minimum tax. Without it, taxes for these families would jump an average $2,000 next year.

Other changes made to attract more congressional support include flood and disaster victims getting new tax breaks, renewable wind and solar energy getting new funds, and mental health treatment getting parity with other diseases.

Western states demanded and got $3 billion for rural school districts adjacent to federal land.

Then there are favors for a few including special provisions for fisherman in Alaska affected by 1989's Exxon Valdez oil spill, makers of rum in Puerto Rico and the Virgin Islands, wool industry research and makers of wooden toy bows and arrows.

All of this added about $105 billion to the previous $700 billion the bill contained for bailing out banks and other financial institutions.

Now one of the new provisions added by the Senate is a very good thing for Main Street America: boosting the government-guaranteed protection of individual bank accounts from $100,000 to $250,000. That hasn't been changed since 1980.

Many of these provisions added within the last few days are undoubtedly good things; others are clearly the products of powerful lobbyists.

(© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)

---