Daily Tax Update - November 20, 2008

VOTE ON AUTO BAILOUT BILL POSTPONED UNTIL DECEMBER:  Democratic leaders said today that they have decided to postpone a vote on a auto industry bailout bill until December. Democratic leaders want the automakers to devise a plan to submit to Congress and the Department of Commerce by December 2nd showing how they would use the funds to revitalize their industry. House Speaker Nancy Pelosi said, “Until they show us the plan, we cannot show them the money.” Pelosi added, “We won't move forward with any of these plans until we see more accountability and the prospect for viability.”

• Earlier today, it was announced that several senators from automobile producing states said that they had crafted a bi-partisan compromise to provide $25 billion in short-term relief to the automakers. To pay for the short-term loans, the Senator’s plan would divert funds from the $25 billion Energy Department program Congress authorized to help the auto industry retool plants to meet higher fuel-efficiency standards. Sen. Carl Levin (D-MI) said, “We believe that if there was a vote today or tomorrow we would get the necessary 60 votes to pass.” Levin said that Democratic leaders had decided to postpone a vote on the bipartisan plan. Levin added, “This is right now in Congress' lap by the decision of the leaders. It is not how we would have proposed it.” 
• Senate Majority Leader Harry Reid said, “The sad reality is no one has come up with a plan that can pass the House and Senate and be signed by the president.”
• Republicans and the Administration have said that they oppose any plan to aid the auto industry from the $700 billion financial bailout package.   

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