California Needs A Bailout Loan! Who’s next?

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Picture Credit: Alvhyttan

SACRAMENTO –“California Gov. Arnold Schwarzenegger, alarmed by the ongoing national financial crisis, warned Treasury Secretary Henry M. Paulson on Thursday that the state might need an emergency loan of as much as $7 billion from the federal government within weeks.

The warning comes as California is close to running out of cash to fund day-to-day government operations and is unable to access routine short-term loans that it typically relies on to remain solvent.

California finance experts say they know of no time in recent history when the state has sought an emergency loan of this magnitude from the federal government. The only other such rescue was in 1975, they said, when the federal government lent New York City money to avoid bankruptcy.” Source: L.A.Times.

Hollywood Evens Gets a Tax Break for Making Movies

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Picture Credit: Kiran Ambre

If you like to read, the complete bailout bill is just for you. After you read it, please contact Chemically Green and tell me what it says!

Sneaky Way of Getting Carbon Offsets Into this Bailout Bill:

If you look at page 180 of the 451-page monster bailout bill that easily passed the Senate yesterday (PDF here), you will see that it includes at Section 116 language about the tax treatment of “industrial source carbon dioxide.” It also provides, at Section 117, for a “carbon audit of the tax code.” What could a provision about the tax treatment of “industrial source carbon dioxide” and another provision about doing a “carbon audit” of the tax code possibly have to do with restoring confidence in Wall Street’s troubled credit markets?The answer: NOTHING.

If you think the Mother of All Bailouts is bad, just wait till you see the carbon tax. Get ready to reduce your standard of living drastically. See Chemically Green post: Cap and Trade Bill, just another tax.

For more reading pleasure, a partial list of tax breaks that have been included in the $850 billion (after Senate got through) bailout bill.

  • Sec. 101. Extension of alternative minimum tax relief for nonrefundable personal credits.
  • Sec. 102. Extension of increased alternative minimum tax exemption amount.
  • Sec. 103. Increase of AMT refundable credit amount for individuals with longterm unused credits for prior year minimum tax liability, etc.
  • Sec. 201. Deduction for State and local sales taxes.
  • Sec. 202. Deduction of qualified tuition and related expenses.
  • Sec. 203. Deduction for certain expenses of elementary and secondary school teachers.
  • Sec. 204. Additional standard deduction for real property taxes for nonitemizers.
  • Sec. 205. Tax-free distributions from individual retirement plans for charitable purposes.
  • Sec. 206. Treatment of certain dividends of regulated investment companies.
  • Sec. 207. Stock in RIC for purposes of determining estates of nonresidents not citizens.
  • Sec. 208. Qualified investment entities.
  • Sec. 301. Extension and modification of research credit.
  • Sec. 302. New markets tax credit.
  • Sec. 303. Subpart F exception for active financing income.
  • Sec. 304. Extension of look-thru rule for related controlled foreign corporations.
  • Sec. 305. Extension of 15-year straight-line cost recovery for qualified leasehold improvements and qualified restaurant improvements; 15-year straight-line cost recovery for certain improvements to retail space.
  • Sec. 306. Modification of tax treatment of certain payments to controlling exempt organizations.
  • Sec. 307. Basis adjustment to stock of S corporations making charitable contributions of property.
  • Sec. 308. Increase in limit on cover over of rum excise tax to Puerto Rico and the Virgin Islands.
  • Sec. 309. Extension of economic development credit for American Samoa.
  • Sec. 310. Extension of mine rescue team training credit.
  • Sec. 311. Extension of election to expense advanced mine safety equipment.
  • Sec. 312. Deduction allowable with respect to income attributable to domestic production activities in Puerto Rico.
  • Sec. 313. Qualified zone academy bonds.
  • Sec. 314. Indian employment credit.
  • Sec. 315. Accelerated depreciation for business property on Indian reservations.
  • Sec. 316. Railroad track maintenance.
  • Sec. 317. Seven-year cost recovery period for motorsports racing track facility.
  • Sec. 318. Expensing of environmental remediation costs.
  • Sec. 319. Extension of work opportunity tax credit for Hurricane Katrina employees.
  • Sec. 320. Extension of increased rehabilitation credit for structures in the Gulf Opportunity Zone.
  • Sec. 321. Enhanced deduction for qualified computer contributions.
  • Sec. 322. Tax incentives for investment in the District of Columbia.
  • Sec. 323. Enhanced charitable deductions for contributions of food inventory.
  • Sec. 324. Extension of enhanced charitable deduction for contributions of book inventory.
  • Sec. 325. Extension and modification of duty suspension on wool products; wool research fund; wool duty refunds.
  • Sec. 401. Permanent authority for undercover operations.
  • Sec. 402. Permanent authority for disclosure of information relating to terrorist activities.
  • Sec. 501. $8,500 income threshold used to calculate refundable portion of child tax credit.
  • Sec. 502. Provisions related to film and television productions.
  • Sec. 503. Exemption from excise tax for certain wooden arrows designed for use by children.
  • Sec. 504. Income averaging for amounts received in connection with the Exxon Valdez litigation.
  • Sec. 505. Certain farming business machinery and equipment treated as 5-year property.
  • Sec. 506. Modification of penalty on understatement of taxpayer’s liability by tax return preparer.
  • Sec. 512. Mental health parity.
  • Sec. 601. Secure rural schools and community self-determination program.
  • Sec. 602. Transfer to abandoned mine reclamation fund.
  • Sec. 702. Temporary tax relief for areas damaged by 2008 Midwestern severe storms, tornados, and flooding.
  • Sec. 703. Reporting requirements relating to disaster relief contributions.
  • Sec. 704. Temporary tax-exempt bond financing and low-income housing tax relief for areas damaged by Hurricane Ike.
  • Sec. 706. Losses attributable to federally declared disasters.
  • Sec. 707. Expensing of Qualified Disaster Expenses.
  • Sec. 708. Net operating losses attributable to federally declared disasters.
  • Sec. 709. Waiver of certain mortgage revenue bond requirements following federally declared disasters.
  • Sec. 710. Special depreciation allowance for qualified disaster property.
  • Sec. 711. Increased expensing for qualified disaster assistance property.
  • Sec. 712. Coordination with Heartland disaster relief.
  • Sec. 801. Nonqualified deferred compensation from certain tax indifferent parties.

Source: Say Anything Blog.

Check this out: More Extensive Pork and Tax Credits of Bailout: Earmarking While Rome is Burning

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11 Responses to California Needs A Bailout Loan! Who’s next?

  1. Dianne Callender October 3, 2008 at 5:39 pm #

    Now may we please have the English translation, please. And this is the bill the Democrats approved, but they couldn’t approve the somewhat smaller one from the Republicans… These are some of the same Democrats who pledge to spend less when they get into the White House? Indeed, they are fiddling while America is burning.

  2. Dianne Callender October 3, 2008 at 7:34 pm #

    After posting my first comment to (partially) express my frustration, I realized what I really need to do is to fall on my knees and ask God to continue in control of our nation and the coming election. This is the only way we can have our country saved from human idiocy.
    (Some of us are not too technically talented; I accidentally posted this comment on the site for “The Truth Is Painful” comments. Maybe it will be useful there as well.)

  3. ChemicallyGreen.com
    chemicallygreen.com October 6, 2008 at 5:45 pm #

    @Dianne Callender: Hello and thanks for the comment. Hal Lindsay has a tv program this week that describes the U.S. is a lot weaker than we think. Pride goes before the FALL! Sad, but most people don’t care and don’t want to get involved, so, look where we are today. Americans have taken for granted what God has given to us and our life style is being trashed and taken away because of our sin. Only Americans getting on their hands and knees and repenting of her sins may give us a chance. Big government is in competition with American business and I don’t think a lot of people realize that government cannot save them. The big bailout? How long will it be beforethe feds come back to the trough for another money orgy?Socialism is alive and well. Ignorance is bliss and it is destroying America.
    We won’t give up.
    2 Chronicles 7:14-15

  4. ChemicallyGreen.com
    chemicallygreen.com October 6, 2008 at 5:53 pm #

    @Dianne Callender: Hello again and thanks so much for the comments. Don’t give up and pray for America.

  5. minesrescueservices February 11, 2009 at 8:28 pm #

    California Gov. Arnold Schwarzenegger, alarmed by the ongoing national financial crisis, warned Treasury Secretary Henry M. Paulson on Thursday that the state might need an emergency loan of as much as $7 billion from the federal government within weeks.”This is the only way we can have our country saved from human idiocy

  6. ChemicallyGreen.com
    chemicallygreen.com February 16, 2009 at 10:38 am #

    @minerescueservices: thanks for your comments.
    California is in deep financial trouble and cutting their costs is the only immediate action. California spends millions of dollars on illegal immigrants and that is a major problem on their budget. Also, with all their taxes and fees they are killing their tax base and businesses are and will continue to leave the state.

    Check out this link, California cannot even get an agreement passed on their current budget.

    http://www.ocregister.com/articles/budget-vote-republican-2309145-plan-senate

    California has got to make serious changes on their economic conditions and the Terminator has no idea what is going on.

  7. ChemicallyGreen.com
    chemicallygreen.com February 20, 2009 at 1:22 pm #

    @ GGTD: Thanks for your comments. The big problem in California is the politicians spend more than there tax base and the big expense of welfare for illegal immigrants. Take care of these and California has a chance and it sounds like you are willing to pay more taxes for what exactly? Reduced spending and budget cuts have to be realized. $14 billion in new taxes?

  8. ChemicallyGreen.com
    chemicallygreen.com April 28, 2009 at 1:05 pm #

    @California Mandates Green Gas Pumps, Owners Say Forget It! – Green News: Thanks for the ping back.

  9. college grants for single parents September 28, 2010 at 7:45 pm #

    There aren’t any authorities "individual grants." That talk is just internet scam.

  10. ChemicallyGreen.com
    chemicallygreen.com October 4, 2010 at 5:55 pm #

    @college grants for single parents: Thank you for your comments. The post was written in 2008 and exactly what are your referring to?

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  1. California Mandates Green Gas Pumps, Owners Say Forget It! - Green News - April 10, 2009

    […] from these stations must not be too important to California since they have asked the feds for a Bail Out and want our tax dollars to save their […]

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