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Plenty of pork in the final bailout

06:06 PM CDT on Saturday, October 4, 2008

By JONATHAN BETZ / WFAA-TV

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Jonathan Betz reports
October 4, 2008
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It would take days and skills most of us don't have to figure out the 451-page bailout package signed by the president yesterday.

But the pork is definitely in there.

The final version was packed with $100 billion in extra incentives, compared to Monday's proposal.

To folks like Matt Montayne, it's clear the economy is off-target, especially after hearing the government's bailout bill, loaded with pork.

"It's crazy. I feel like the money should be going somewhere else," he said.

Buried in the 450-page bill, millions of dollars, critics complain, in wasteful spending.

Giving tax breaks to movie companies, to rum importers, even wool manufacturers.

Among the perks?

$2 million in breaks to companies that make wooden toy arrows.

There's $10 million to encourage more people to ride bikes to work and $100 million in tax breaks to racetrack owners.

"It's a good plan, and I think it's very timely and we needed it," said Professor David Springate at UTD.

Still, economists, like UTD's Springate feel the bill should jumpstart the crippled credit markets.

The pork spending, supporters argue, was worth the cost to lure over lawmakers.

"You had to give some of the members some cover, if not some cover, then benefits, otherwise they just plain weren't going to vote for it," said Springate.

Plus, defenders say the tax breaks will help Americans.

Texans, for instance, will benefit by continuing to deduct what they pay in sales tax from their income tax.

Still, others worry congress should focus on saving, not spending.

"Money going into that - right now, I don't think would be the right time to do it," said Montayne.

Especially since economists don't know if the bail-out will work, meaning it could be months before we know whether congress hit the mark.

 

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