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...Senate is now trying to work into law a provision that would give people a $15,000 tax credit for buying a new home. This would substantially expand the cost of the bailout, if people are willing to take advantage of it. The average American who still bothers to read a newspaper is acutely aware that most signs point to a housing market which is still spiraling down, no matter what pending home sales numbers say. All of the "For Sale" signs in most neighborhoods and auctions of foreclosed properties are a sure indication that housing supply is still extremely...

Author: /time Magazine | Title: Why the Housing Market Has Yet to Hit Rock Bottom | 2/5/2009 | See Source »

...sense; dozens of Indian citizens are killed every year while trying to earn the fee of about $22 for getting a cow across. (The animals can eventually be sold for as much as $900 each.) Legalizing the trade would reduce the border violence and open a new stream of tax revenue. But few on the border expect that to happen in a majority-Hindu country. "Which government is going to allow the export of cows for slaughter?" Mitra asks. "That would just be political suicide...

Author: /time Magazine | Title: A Great Divide | 2/5/2009 | See Source »

Pelosi has also been vocal in calling on the President to repeal Bush's tax cuts for the wealthiest Americans this year, a move Obama has been unwilling to commit to in the current economic climate; some in the Administration have suggested that it's preferable to just let the cuts lapse when they expire next year. And the House Speaker has refused to rule out investigating former Bush Administration officials, even after Obama said he would prefer to keep the party's focus forward-looking...

Author: /time Magazine | Title: Obama vs. Pelosi: Can the President Work with the Democrats? | 2/4/2009 | See Source »

...starkest differences have been over the stimulus plan. In early January, Obama said he would like to see as much of 40% of the stimulus bill be comprised of tax cuts. Pelosi didn't agree, ultimately delivering legislation with just a third in tax cuts. When House Republicans objected to two provisions in the bill - one providing Medicaid family-planning aid to states, and another funding restoration of the National Mall - Obama quickly asked to have the offending items removed. Around the same time, he traveled to the Hill to reach out to and commiserate with the House...

Author: /time Magazine | Title: Obama vs. Pelosi: Can the President Work with the Democrats? | 2/4/2009 | See Source »

...breath, to rethink, if not reboot. The more I think about the stimulus supertanker, the more questionable it seems. Not substantively: most of the money in it is justifiable. But a case can be made that it should have been divided into discrete packages: a short-term booster with tax cuts, state aid and shovel-ready public works; then, an education bill, a health-care bill, a green- and high-tech-economy bill. In almost all these areas, there are reforms that need to be attached to the money. The additional money for Medicaid should be part of a comprehensive...

Author: /time Magazine | Title: The Lessons of Daschle: Can Obama Reboot? | 2/4/2009 | See Source »

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