Congressman Peters' Response To The State Of The Union Address

Statement

In his first State of the Union Address, President Barack Obama supported a number of measures championed by Congressman Gary Peters.

In December, Congressman Peters announced a plan to use $40 billion from unspent or repaid TARP (a.k.a. the Wall Street Bailout) funds to spur small business lending. Tonight, President Obama called for $30 billion of TARP funds to spur small business lending.

Last March, the first bill Congressman Peters introduced as a U.S. Congressman called for an expansion of the child care tax credit. Congressman Peters' Helping Families Afford to Work Act called for an expansion of the child care tax credit from 20 -- 35%. Now, President Obama is calling for exactly the same rate expansion.

Last July, Congressman Peters was one of 19 Democrats to vote for caps on discretionary spending. Tonight, President Obama called for a three year freeze on non-defense discretionary spending.

In December, the House passed an amendment authored by Congressman Peters to ensure that the nation's largest banks paid back any shortfall in the TARP program. Tonight, President Obama reiterated his support for this plan.

Following President Obama's address, Congressman Gary Peters released the following statement:

"Spurring small business lending to create jobs, enacting new middle class tax cuts and forging real deficit reduction have been my top priorities. Now that the president is stepping up and taking the lead on these issues, I am hopeful we can work together in a bipartisan way to see some real action on items that could be extremely helpful for Michigan families."

On small business lending:

"I am extremely happy the president has adopted my plan to redirect funding from the Wall Street bailout to help spur small business lending. Business owners tell me this is one of the largest impediments to creating jobs in Michigan. I hope to learn more details in the coming days to ensure the president's plan takes into consideration Michigan's specific challenges. Large banks have admitted they are not lending much to Michigan businesses, especially manufacturers, so unlocking capital for Michigan community banks is a must to create the environment necessary for small businesses to create jobs.

On middle class tax cuts:

"I was encouraged to hear the president now taking the lead on middle class tax relief, one of my top priorities. In particular, I am heartened that the president is supporting an expansion of the child care tax credit and college tuition support, the subject of my very two first bills in Congress."

On reducing budget deficits:

"I fully support the president's call for a discretionary spending freeze. I was one of only 19 Democrats to vote for caps on discretionary spending last summer. The Senate also needs to pass statutory pay-as-you-go legislation to force Congress to keep the deficit in line. I hope the president will soon send Congress a 2011 budget with detailed steps for turning the record deficits we've seen in the last decade back into surpluses like we had in the 1990s."

On ensuring taxpayers do not pay for the Wall Street bailout:

"As large banks return to health, there is no reason why taxpayers should pay to clean up Wall Street's mess. I am extremely pleased that the White House is now also taking action to ensure that large financial institutions, rather than taxpayers, are responsible for losses from TARP."

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