McKeon Votes to Protect Americans' Retirement Accounts and Stabilize the Financial Markets

Press Release

Rep. Howard P. "Buck" McKeon (R-Santa Clarita) today voted in favor of the Emergency Economic Stabilization Act of 2008, an emergency measure to help the troubled financial markets recover and prevent further destabilization in the economic system.

"I joined my colleagues today in taking a bold step to salvage the financial markets by passing the economic rescue package," said McKeon. "This bipartisan package includes substantial taxpayer protections and will ultimately protect the savings accounts and money market accounts of millions of American citizens. The bad actors on Wall Street will take a significant loss with this legislation, but that loss will be contained and our economy will be protected. Through this legislation, the federal government lifts the current freeze on the credit market and allows that capital to move back into the economy. I am also pleased this bill stands against golden parachutes and giveaways for corporate executives and includes $110 billion in tax relief, including a provision that will extend tax relief to around 20 million middle-class Americans that would be inadvertently hit with the onerous alternative minimum tax."

Yesterday, California Governor Arnold Schwarzenegger called on Congress to pass the rescue plan, because the state of California is facing a credit crisis, leaving it unable to support schools and other government entities. The Governor indicated that the state may have needed to borrow $7 billion in aid from the federal government in order to fund day-to-day operations if the rescue plan wasn't passed.

"Without this package, Americans would have seen the negative impact of a paralyzed financial market directly in their own lives," McKeon continued. "Governor Schwarzenegger made it clear this week that Congress had to pass the rescue plan or California would be forced to lay off state employees in order to stay afloat financially. States and citizens across the nation are facing these same dire circumstances. By passing the rescue plan, Congress is saving bank accounts and jobs and saving the free market from crumbling."

The economic rescue package includes many provisions aimed to protect taxpayers while ensuring credit and confidence is restored to our markets. These include:

Increase in the FDIC insurance cap from $100,000 to $250,000,

Alternative insurance program so Wall Street pays to rebuild its own credit,

Alternative Minimum Tax (AMT) relief that will protect 25 million middle class families from paying higher taxes,

No golden parachutes for Wall Street Executives,

An evaluation of accounting rules to ensure we accurately value the debts and assets of companies

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