A tax break for rum produced in Puerto Rico and the U.S. Virgin Islands may trigger a hangover for proponents of Congress' huge bailout bill after the U.S. Senate tacked on tax reductions for the islands' liquor.
In its current form, the estimated cost of the U.S. Caribbean rum tax proposal, which provides payment to Puerto Rico and the U.S. Virgin Islands for rum imported into the mainland, is US$192 million over 10 years.
Normally, this tax break would be extended with little fanfare, but the Senate screwed the pooch on this one, y'all. Something tells me that we're going to be revisiting this mess under the next Administration come January.
Anyhow, here's the breakdown of the Louisiana delegation in the House vote:
Ayes:
LA-03: Charlie Melancon (D)
LA-04: Jim McCrery (R)
LA-05: Rodney Alexander (R)
LA-07: Charles Boustany (R)
Nays:
LA-01: Steve Scalise (R)
LA-02: Bill Jefferson (D)
LA-06: Don Cazayoux (D)
Steve's in the fight of his life in LA-01; and so is Bill over in LA-02; and Don is facing a tough re-election battle against Bill Cassidy. Still, Don sent out this statement about his vote: (emphasis added)
""Today, I cast my vote against Senate version of the Emergency Economic Stabilization Act. This was decidedly one of the toughest votes I have taken during my career in elected office, but I am confident that I cast the right vote. It is my firm belief that giving Wall Street $700 billion in taxpayer money is not the right way to solve the fundamental challenges facing our economy and financial markets. I was hopeful that the new compromise bill would have a smaller pricetag with less taxpayer liability, but it did not."
