It’s Fix the Tax Code Friday!
For most of the week, the headlines have involved the crisis in the automotive industry with eyes on the “Big Three”: Ford, General Motors (GM) and Chrysler. Execs from the Big Three jetted to DC to beg lawmakers for loans worth billions of dollars, warning that the failure to deliver the loans could spell disaster for the industry and related commerce.
Congress refused to vote on the bailout, citing a lack of a restructuring plan from any of the three motor giants. Congressional leader Harry Reid has given the Big Three a deadline of December 2 to come back to Congress with a workable plan.
One version of a bailout would use $25 billion in funds from the Energy Department structured as a loan. The funds were previously earmarked for development of fuel-efficient vehicles. Repayments by the industry would serve to replenish the fund.
Another version of an auto industry bailout would take funds already promised to the banking industry as part of that $700 billion bailout.
Either version would rely on the immediate use of taxpayer funds, which is causing consternation in Congress. Funding for the next fiscal year is already tight which means that services may be cut and taxes may be raised in an effort to “right the ship” and settle the budget. With a majority of Americans unhappy with Congress right now, lawmakers don’t want to dig themselves an even bigger hole. But not acting at all could have a similar effect since so much of the American economy is related to the automotive industry.
So today’s Fix the Tax Code question is:
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