p14 Stateside 26/2/09 13:58 Page 12
STATESIDE
Stateside
The Recovery and Reinvestment Act recently signed into
US law has Sharon Harris seething…
T
iming is everything. Fortunately, my For example, sex trumps slots. Among Pelosi and
deadline followed the passage of the $787 company’s ridiculous provisions are hundreds of
billion Recovery and Reinvestment Act of millions for contraception, sexually transmitted
2009. Originally written by the House of disease (STD) research and funding a shelter for
Representatives, Democrat Speaker Nancy prostitutes. How about $600 million for new cars for
Pelosi of California steered this “stimulus package”. It government workers? Or hundreds of millions for all-
was revised in the US Senate, and then both groups terrain vehicle tracks, smoking cessation programs,
voted to pass it. doorbells, landscaping in Washington, upgrades to
Ringing alarm bells on its urgency, it seemed like a digital television and other non-emergency items.
frantic race to the finish line late February 13. One I must also mention Senator Harry Reid, the
moronic reporter claimed speed was crucial despite Democratic Majority Leader from Nevada. He
no legislator having read the final 1100-page advocated $8 billion for high-speed train construction.
document – they got it only hours before the vote – He wants money for a rail line to cross hundreds of
or completely knowing what was in it. Funny thing miles of desert between California’s Disneyland and Las
about those members of Congress… why should we Vegas. Can’t you imagine the crowds waiting to get on
expect them to actually be informed? board rather than drive or take the hour flight?
It became so politically charged that President However, the final bill did contain “gaming carve-
Barack Obama sent an official plane to return one out language”, which specifically excludes financial
I fear this
senator to Washington after his mother’s funeral. aid for numerous leisure industries – from casinos to
Obama signed the Act into law on February 17. stadia. So, money awarded to projects retrofitting
legislation may
Everyone realizes the American economy desperately government buildings or climate research is okay. But
help in the short
needs help. Like millions, I advocate a truly productive offering economic aid to companies that employ
long-term solution. However, I fear this legislation may hundreds of thousands of people, and house
term, but indebt
help in the short term, but indebt the US even more by thousands of small retail and dining outlets, plus
the US even more
spending billions on non-stimulating projects. After contribute billions in taxes, is no good.
trying to dissect many elements of this package, I Officially, the American Gaming Association (AGA)
by spending
lament my lack of full support. favors two generic pro-business provisions that offer
billions on non-
The American Congress comprises 100 senators relief from Cancellation of Debt Income (CODI)
and 435 representatives. Regardless of population rules. First, when a firm restructures debt, the price
stimulating
and size, each state has two senators, serving six-year differential is considered income. However, income
projects.
terms. Based solely on population, representatives taxes will now be deferred for five years. Businesses
reflect a specified district within their home state for will then spread their tax liabilities over another five
two years, so re-election is always on their minds. years. Also, companies may deduct up to half the cost
Granted, there are thousands of needed planned of equipment purchases or upgrades within the first
expenditures, including infrastructure funding for year, rather than over several years.
crumbling roads and bridges, extended unemployment I support the need for action but I worry about
benefits, healthcare assistance and increased help with this specific “solution”, which creates enormous debt
food stamps. Also, it provides some small tax breaks – and was written with such speed.
an average family will gain an extra $65 per month. Compare it to doctors recommending immediate
The downside is that this construction and emergency surgery, without exploring less radical
renovation will create finite work projects rather than interim steps that could resolve the problems in
build career opportunities through business growth. stages. Red flags go up for me when things happen
After completing the bridge or highway, the work ends. too quickly.
Small businesses, the backbone of America, get little Metaphorically, we are all being wheeled in to the
relief. Think of how many smaller private companies operating room. Let’s hope these government
supply the gaming industry, growing jobs for people surgeons know their field, and cannot later be
across the country. It is a staggering number. accused of malpractice.
However, I fear this legislation spends too much on More next month on this economic tool’s wide-
projects with minimal long term economic rewards. ranging effects on gaming.
14 MARCH 2009
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