Economic Stimulus - 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|

Financial Bailout Package Fails in House

If you are following the markets, you might have noticed the financial sector bailout plan failed in the House, 216 to 206. Here’s the vote tally. When it become apparent the vote was going to fail, the Dow fell by more than 700 points (6%) and continues to trade in that range.

Your S-Corp team expects the House Leadership to work with the Administration to alter the plan and bring it back up on Wednesday. Possible changes include additional conditions for firms selling assets to the Treasury, a smaller cap on those …

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DavidLingholm2019-02-06T18:06:06+00:00September 29, 2008|