Wednesday, October 20, 2010

Union Bailout in the Lame Duck Session?

Shane Atwell links to a Washington Examiner story by Mark Hemingway pointing to a potential budget busting morass that could be created by the lame duck pairing of Pelosi and Reid.

The other piece of legislation is, not surprisingly, a bailout bill offered by Sen. Bob Casey, D-Pa., and co-sponsored by Senate Majority Whip Richard Durbin, D-Ill. (A similar piece of legislation is being offered in the House by Rep. Earl Pomeroy, D-N.D.) The bill would make failing union pension plans fully backed by the Pension Benefit Guaranty Corp., a government-sponsored entity.

In the plain language of the bill, "obligations of the corporation which are financed by the fund created by this subsection shall be obligations of the United States." It creates a fund that these pension plans will be able to go to that will be filled by taxpayer funds as needed through the normal appropriations process.

The Tea Party will have to keep a very close eye on the lame duck session of Congress. The bigger the Democrat losses, the more mischief they will try to create.

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