With the new Bailout Plan easily passed in the Senate, the House gears up for an early vote Friday. But many are concerned the new plan is too similar to the one rejected by the house just two days earlier.
Friday morning the House is expected to vote on a revised bailout plan, the core of the bill will stay the same with financial institutions selling their troubled assets to the government. One change would temporarily increase the FDIC insurance cap $150,000. A move banking expert Peter Waller says is mostly to improve consumer confidence in the banking system.
"I think some of the driving force behind the Senate move to add that provision to the bill that failed the House earlier this week was to alleviate some of the feat that's in the markets right now."
Waller says he thinks the idea is solid. "I think it's a good idea. Fear and greed drive markets and we are definitely in a fear stage right now."
Another sweetener to the bill is a year relief from the alternative minimum tax, also known as the income tax for the wealthy.
"What they are doing is called a patch they are just doing it for one more year," says CPA, Craig Severance. Severance says its something congress votes to extend every year. "They raised that about $20,000 a few years ago but it expires every year and they have to keep extending that and that's part of the deal."
Renewable energy tax breaks are also included in the bill as well as the extension of a number of breaks for individual and business with deductions for the purchase of solar panels. Other expiring tax breaks would also be extended.
Because of the Senate add–ons the cost for the bill is predicted to be higher than the original $700,000,000.
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