News & Observer | newsobserver.com | What the plan does

Published: Oct 05, 2008 12:30 AM
Modified: Oct 05, 2008 06:09 AM

What the plan does

 

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FOR WALL STREET

< Authorizes $700 billion for the government to purchase troubled assets and buy equity in distressed financial firms.

< Phases in the money for buying troubled assets, with $250 billion available immediately, $100 billion to be released if the president certifies it is needed, and the last $350 billion available with another certification but subject to a congressional vote.

< Restates securities regulators' authority to suspend asset-valuing rules that corporate executives blame for fueling the crisis.

< Provides tax cuts and special breaks for companies such as an Oregon-based maker of wooden arrows and Virgin Islands rum manufacturers.

< Provides business tax breaks, including for producing, using and investing in renewable fuels.

FOR MAIN STREET

< Requires the Treasury Department to make rules to prevent excessive compensation for executives whose companies benefit from the rescue, and cap deductibility of executives' pay packages at $500,000 for firms that get $300 million or more from the program.

< Increases from $100,000 to $250,000 the limit on federal bank deposit insurance.

< Establishes an oversight board, a special inspector general to monitor it and regular government audits.

< Requires that the president establish a plan to recoup the cost from the financial industry if, after five years, there are any losses.

< Increases personal credits against the alternative minimum tax, shielding more than 20 million taxpayers from it.

< Grants tax relief to victims of natural disasters in the Midwest and elsewhere.

< Extends until the end of 2009 the deduction for state and local sales taxes.

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