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On House Passage of HR 1424, The Emergency Economic Stabilization Act

Press Release

By:
Date:
Location: Washington, DC


"My priority in supporting this bill has always been to protect Wyoming taxpayers, retirees, families, college students, and mainstreet businesses. Anyone who depends on a sound financial system was being threatened by this worldwide economic crisis. This bill includes maximum protections for taxpayers, no golden parachutes for irresponsible executives, and puts taxpayers first in line to recoup losses from institutions.

"Doing nothing to address this financial crisis is not an answer or an option. Banks are already tightening their credit making it tougher for folks with good credit to get car, home and school loans. Allowing our economy to falter, causing the failure of businesses large and small, is not an option. Allowing retirement accounts and family assets to be reduced to worthless paper is not an option.

"This was not an easy vote. The importance of it ranks with the Iraq war vote and the vote for impeachment. The politically safe and popular vote on this issue was a no vote. That was also the wrong vote in my opinion. I will not stand idly by while this nation's financial system is near collapse. My final vote as Wyoming's Member of the U.S. House will be recorded as a vote to support the financial foundation of this nation and to ensure a brighter future for our children and all Wyoming families."

Listed below are a number of provisions in HR 1424.

· Up-front Treasury authority cut in half

· Taxpayers protected against losses

· No golden parachutes for Wall Street

· Protection for community banks from Wall Street excess off losses on Fannie and Freddie mortgage assets they hold.

· Federal insurance program protects taxpayers, forces Wall Street to share the burden

· Increases the amount of bank deposits insured by the government from $100,000 to $250,000 through 2009.

· Protects 21 million middle-class families from getting hammered by the Alternative Minimum Tax (AMT) for tax year 2008.

· Extends tax deductions on state and local sales taxes.

· Provides full, mandatory funding for Payment in Lieu of Taxes

· Renewable Energy Tax Credits

· No liberal slush funds

· No trial lawyer giveaways

· No Big Labor paybacks

· Bipartisan oversight and accountability: Democrats wanted to stock a seven-member oversight board with five Democrats and only two Republicans. House Republicans successfully demanded the panel be truly bipartisan with an equal number of Democrats and Republicans.: Democrats wanted to continue their two-years-long Big Labor payback by giving union bosses seats on the boards of participating financial companies. This bill does not do so.: Democrats wanted trial lawyer giveaways that would punish responsible borrowers and help their political allies by allowing bankruptcy judges to unilaterally rewrite mortgage terms. This bill does not do so.: Democrats wanted to direct 20 percent of the revenues from the program into a slush fund for ultraliberal allies like ACORN. This bill does not do so.: The bill extends and modifies the production tax credit, through the end of 2009, for generating electricity from sources such as wind. Other energy sources such as geothermal; closed-loop biomass; hydropower; landfill gas; and trash combustion facilities are also extended. Increases funding for the PILT program that compensates local governments for federal land (which reduces the tax base), within their jurisdictions by mandating funding from 2008 to 2012 instead of leaving it up to discretionary authority. In fiscal year 2008, Wyoming counties received over $15 million in PILT payments.: In past years through Republican tax relief, taxpayers have been given the option to claim state and local sales taxes instead of state and local income taxes when they itemize deductions. This deduction mainly benefits taxpayers in states with a state or local sales tax but no income tax — including Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming. The economic rescue plan protects working families from the AMT - an unfair tax, initially intended to affect only the wealthy, that middle-class Americans were never meant to pay. Without action, 21 million middle-class families will be hit with an average tax hike of $2,500. The rescue plan protects individuals and small business owners by increasing the amount of bank and credit union deposits insured by the government. The current limit of $100,000 was set 28 years ago and has not been adjusted for inflation. This will help small business owners and entrepreneurs meet their bottom lines and make payroll. Requires the establishment of an insurance guarantee program that in lieu of purchasing assets with taxpayer funds is available to insure assets at no cost to the taxpayer. Costs would be fully paid for by participating companies (i.e. those receiving the assistance). Assets insured by the program would count against the total funds the Secretary would otherwise have available to make purchases. :: The rescue plan helps local community banks across the country by allowing them to write: Irresponsible corporate executives at participating institutions will not be rewarded with golden parachutes or severance pay. : Taxpayers would be first in line to recoup losses from participating financial institutions in the event they fail or lose money - not shareholders and certainly not corporate executives. : Secretary Paulson's original proposal sought $700 billion in up-front, immediate authority. The new economic rescue plan cuts this up-front authority in half. The Treasury would have $250 billion in immediate authority, with another $100 billion available after the Secretary reports to Congress. Congress has the authority to withhold the remaining $350 billion.


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