, Author at The S Corporation Association

Congress to Consider Lame Duck Session Stimulus

What time is it when the market is down, unemployment is up, personal consumption is falling and manufacturing activity is contracting? Time for another economic stimulus package.

Last week, the Ways and Means Committee confirmed it will hold a hearing on the economic stimulus package on October 29^th. The specifics have yet to be worked out and several House and Senate Committees are expected to have a hand in crafting the bill. Politico lists the most likely contenders:

It could include a permanent tax cut for lower- and middle-income families, in …

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admin2019-02-06T17:22:36+00:00October 20, 2008|

Bailout Update

The Treasury Department announced over the weekend that it would infuse $250 billion directly into the banking system, starting with approximately $125 billion targeted at nine major institutions including Goldman Sachs and Citigroup.

Combined with the coordinated efforts of central banks around the world, the announcement appears to have successfully staunched the record erosion of equity prices over the past two weeks. Interest rates and other indicators are moving in a positive direction as well, indicating that the credit markets may finally loosen up.

If you are keeping track, the latest move by Treasury is just the last in a remarkable and …

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admin2019-02-06T17:22:36+00:00October 14, 2008|

Congress Passes Bailout — Goes Home for Elections

The House reversed course today and voted to adopt the expanded Treasury bailout package by a vote of 263-171.

As S-Corp readers know, the Senate took the original Treasury plan, added the tax extender package, some hurricane relief, and a temporary boost in FDIC insurance levels, and passed the broader legislation 74-25 on Wednesday.

Fifty-seven members of the House switched from No to Yea today. The package is now law. The President signed it as soon as the bill traveled sixteen blocks up Pennsylvania Avenue.

So how will this impact S …

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admin2019-02-06T17:22:36+00:00October 3, 2008|

Bailout and Extenders Combined

As equity markets continue their wild swings while the credit markets signal distress, Congress will make another run at the financial sector bailout this evening.

This time the Senate will try. The new package retains the core of the bailout — authority for Treasury to purchase hundreds of billions of dollars worth of troubled mortgages and other assets — while adding an increase in FDIC insurance levels from $100,000 to $250,000, hurricane relief, and the Senate-passed tax extender package.

The Senate will take up the package this evening, voting around 8:00 pm Eastern Time. If it passes, the House will take it …

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admin2019-02-06T18:06:06+00:00October 1, 2008|

Bailout Votes This Week

The House is scheduled to vote on the financial sector bailout package later today. If it passes, the Senate will take it up on Wednesday.

The package itself retains the core Paulson proposal to give Treasury the authority to purchase $700 billion in problem mortgages held by banks and other financial institutions. The goal of the plan is to restore confidence in these institutions by eliminating this source of fear and uncertainty for the next two years. The ultimate cost of this plan to taxpayers will depend on how much further home prices fall. Some observers believe the taxpayer will be …

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admin2019-02-06T18:06:06+00:00September 29, 2008|