Bailout bill includes timber payments

The financial rescue plan approved by Congress on Friday extends a program that pays rural counties hurt by federal logging cutbacks.

The bill also will allow Washington state residents to continue deducting state sales taxes on federal income tax returns. And it extends tax credits for renewable energy such as solar, wind and hydropower, as well as biomass and geothermal electricity.

Senators inserted the timber provision as one of several sweeteners to attract more votes for the bailout bill, which was defeated earlier this week in the House. The House approved the revised version of the bill on Friday, two days after the Senate.

Two Northwest lawmakers switched their votes on Friday. Rep. Jim McDermott, D-Wash. voted no after supporting the initial bill, while Rep. David Wu. D-Ore., voted yes after opposing the bill on Monday.

McDermott said the Senate changes - primarily a series of tax breaks costing more than $100 billion - did not improve the bill, but made it worse.

"The Senate dug an enormous ditch alongside Main Street, and they want the House to drive into it. That is exactly where the president has driven this economy over seven years," McDermott said.

McDermott said thousands of people in his Seattle district were "absolutely enraged" by the bailout bill. He called it outrageous that the bill did not extend unemployment benefits for workers who have been laid off, while giving billions of dollars to Wall Street CEOs who caused the economic crisis in the first place.

"There is a credit crisis in America to be sure, but there is no question today that there is also a trust crisis in America, every bit as damaging and debilitating," McDermott said. "We cannot solve the first crisis before we address the second crisis."

Other Northwest lawmakers voted as they had Monday.

Voting in favor were Wu and Rep. Darlene Hooley, D-Ore., as well as Democratic Reps. Brian Baird, Norm Dicks, Rick Larsen and Adam Smith of Washington state, and Republican Reps. Greg Walden of Oregon and Mike Simpson of Idaho.

Voting no were McDermott and Rep. Jay Inslee, D-Wash., as well as Democratic Reps. Earl Blumenauer and Peter DeFazio of Oregon, Republican Reps. Doc Hastings, Cathy McMorris Rodgers and Dave Reichert of Washington, and Rep. Bill Sali, R-Idaho.