On May 13, 2010, Rep. Barney Frank (D-MA) introduced H.R. 5297, TARP III. The bill is being promoted as necessary to increase the availability of credit for small businesses. TARP III would create a $30 billion lending fund and authorize the Treasury Secretary to make capital investments in banks with less than $10 billion in assets. Those banks would be charged dividends or interest of 5 percent yearly. Those rates would be reduced based on the bank's level of small business lending. TARP III would also authorize the appropriation of $2 billion to assist states with funding their small business lending and guarantee programs. However, the bill would deepen the nation's debt problems and duplicate the goal of the original $700 billion TARP program. With nearly 10 percent unemployment, the economic leadership of congressional Democrats has proven to be a failure. TARP III and its $32 billion price tag would not be any differentRead More: TARPIII
Wednesday, June 9, 2010
What is Tarp III?
What is Taryp III?
Senate Bill More than Doubles Tax Rate
Senate Bill More Than Doubles Tax Rate on
Pensions, Charities, and Colleges
"The Senate this week is taking up the tax extenders package. According to the Congressional Budget Office, it raises net taxes by $47.5 billion. Like its House counterpart, this bill is a clear violation of the Taxpayer Protection Pledge. ATR will be keyvoting against this bill in our annual Congressional scorecard.
One provision that's getting a lot of notice is the tax hike on pensions, charities, and colleges (the "carried interest" tax hike). We wrote some background on this for the House bill.
The Senate version slightly changes the tax hike involved. Under the Senate bill, a portion of capital gains from some investment partnership profits will be taxed as ordinary income. What portion depends on the year, and whether the asset in question was held for at least seven years. Here's the percentage of capital gain which will be wrongly treated as ordinary income:"
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