Last week, I voted twice against the nearly $1 trillion Wall Street bailout bill in the U.S. House. The first bill (with a $700 billion price tag for taxpayers) failed with an overwhelming bipartisan majority.  Then the Senate passed a second version that was loaded with tax "sweeteners" in an attempt to attract enough lawmakers in the House who voted "Nay" the first time around to switch their vote to pass the bill. That jacked the price tag up to $810 billion.  You've got to love Washington.

We were supposed to be voting on a financial bailout bill, but unfortunately we got much, much more.

Taxpayers for Common Sense have listed their Top 10 Tax Sweeteners in the recently passed Bailout Bill. As the organization notes, not all of these are outrageous on their own, but when we are supposed to be voting on a bailout package that is already putting the American people further in debt, these extras are the last thing that should be thrown into the mix as political currency to attract votes. They should have been dealt with at another time.

1.) Sec. 503. Exemption from excise tax for certain wooden arrows designed for use by children ($2 million)

2.) Sec. 317. Seven-year cost recovery period for motorsports racing track facility ($100 million)

3.) Sec. 308. Increase in limit on cover over of rum excise tax to Puerto Rico and the Virgin Islands ($192 million)

4.) Sec. 301. Extension and modification of research credit ($19 billion)

5.) Sec. 504. Income averaging for amounts received in connection with the Exxon Valdez litigation ($49 million)

6.) Sec. 601. Secure rural schools and community self-determination program ($3.3 billion)

7.) Sec. 201. Deduction for state and local sales taxes ($3.3 billion)

8.) Sec 502. Provisions related to film and television productions ($478 million)

9.) Sec. 325. Extension and modification of duty suspension on wool products; wool research fund; wool duty refunds ($148 million)

10.) Sec. 309. Extension of economic development credit for American Samoa ($33 million)

Check out Taxpayers for Commonsense for more information on these provisions and several others.

The bailout bill that the U.S. Senate passed late Wednesday night is not the remedy for what ails this nation's economy. While we are all anxious to take action to help America recover from it's current financial crisis, it does us no good to pass a bill that does not address the underlying problem before us, and that's the credit crunch.

After the defeat of the original proposal in the House on Monday, Congress had an opportunity to really address some of the shortfalls of the failed bill. Instead they loaded on millions of dollars in pork barrel spending and a couple of other "treats" to lure members of Congress who voted "Nay" the first time around to reconsider their vote. From tax incentives to mental health parity (which, by the way, deserve their time to be considered and voted upon), they should not be strategically placed into a bill of this magnitude that is supposed to specifically address the credit crunch facing our nation. It is irresponsible, and proof enough that Congress deserves its 10% approval rating. Instead of being a source of calm in the eye of a storm, a good many lawmakers have lost their good sense and jumped overboard to back a bill that does nothing to really address our current financial crisis, other than give Americans a false sense of economic security.

There are simple steps that we can take to make the problem in front of us much smaller, and much easier to handle. The Free Market Protection Act (H.R. 7223) is an alternative economic rescue plan that puts us on a better path to attack the roots of the current crisis. Among other things, it would suspend the capital gains tax, schedule the government-sponsored enterprises (Fannie Mae and Freddie Mac) for privatization, and suspend mark-to-market accounting requirements.

Take a look at it in more detail here .

And, there are steps that the SEC, FDIC, and FASB can take already within their regulatory authority to make a real difference.

We must be calm, and while we should work speedily, we must not work hastily. Sadly, the bill passed by the Senate that is now in the House is a result of the "urgent" need to pass "something," rather than the "right thing."

 

Yesterday, Congress voted on what is arguably the single most important issue facing our country today.  A $700 billion, taxpayer-funded Wall Street bailout package was presented for a vote with absolutely no opportunity for debate or consideration of alternatives.  Every Member of Congress who spoke on the floor, every Administration official involved in the negotiations on the package, and every commentator has said that this is a bad package.  Many of them, however, have said that Congress had no alternative but to pass it.

I disagree, and so did a solid bipartisan majority of the House of Representatives who voted against this package.  Congress must sit back down and demand that the Bush Administration take into consideration some of the very valid alternatives being discussed.  There is no reason that Congress needs to rush into passing a bad bill that would saddle generations with debt.  The American people deserve a more thoughtful response.

Check out an alternative proposal to which I'm a co-sponsor of here.

For anyone trying to submit an email to a Member of Congress, the U.S. House is limiting e-mails from the public to prevent its websites from crashing due to the enormous amount of mail being submitted on the financial bailout bill. 

As a result, some constituents may get a 'try back at a later time' response if they use the House website to e-mail their lawmakers.

We apologize for the inconvenience, and you're encouraged to call our Washington or Minnesota offices with comments or questions.

Washington, DC: 202-225-2331
Woodbury, MN: 651-731-5400
Waite Park, MN: 320-253-5931

Thanks for your patience.

Yesterday, I joined several House colleagues to urge the Democrat controlled Congress, the Treasury, and the Federal Reserve to act with greater transparency and responsibility for the taxpayer when it comes to the financial markets crisis rattling our nation.

Check out the Wall Street Journal's Market Watch coverage of the press conference here.

Taxpayers must not be left on the hook to the tune of billions of dollars -- possibly in the ballpark of $500 billion -- in government-backed bailouts. If government is propping up Wall Street and taxpayers foot the bill for the government, that makes Americans the last line of insurance in these unstable financial times.

The question becomes:  Who will left to bail-out the taxpayer who is already saddled with a debt of about $455,000 per household just for runaway entitlement spending?

The government is embarking on a very dangerous path, and the recent financial takeover of AIG Insurance is an action we must not be quick to replicate. Privatizing reward and socializing risk is essentially rolling the dice with our nation's financial security and it is a surefire recipe for disaster for our economy.

If we bail out one, another lines up for their hand out, then another, and another, and another. If this keeps up, everyone from Starbucks to JC Penney's will see themselves as too big to fail and they too may be knocking on the doors of the Treasury looking for their bail-out.

Investor's Business Daily had a great editorial on this issue yesterday, too.  Check it out here.

With the recent news of the Fannie and Freddie takeover, it is vital that we take steps to ensure that taxpayers are protected as Treasury Secretary Henry Paulson and Director of the new Federal Housing Finance Agency (FHFA), Jim Lockhart, launch their four part plan to stabilize the two mortgage giants.

On one hand, I’m satisfied that the FHFA is acting swiftly to secure the GSE’s, and is incrementally doing so to maximize American taxpayer protection. However, we must all be concerned and keep a watchful eye on the plan as it moves forward to ensure that already struggling taxpayers are not left footing the bill for this multi-billion-dollar bail-out program.

While monitoring the plans progress, it is vital that we reform the institutions so that the same thing doesn’t happen again in the future. I believe that once Fannie and Freddie are ready to be released from government control, they should be privatized. Similar to Ma Bell, we should break up the GSE’s and have smaller, privatized mortgage companies. By doing that, we will ensure that we do not go through this exercise in the years ahead. The bottom line is that the taxpayer must be fully protected while we work to stabilize the market.

Cross-posted at The Hill's Congress Blog

Today, the Democrat majority in the House of Representatives got their wish. By a mere one vote (213 to 212), the Democrats will be able to sneak out of Washington for the entire month of August without doing anything to address our nation's sky-rocketing energy prices. Just 17 Democrats broke ranks with Speaker Pelosi and joined the 195 Republicans in voting against this measure, but we still fell one vote short.

With gas prices over $4 a gallon, the Democrats have voted to give themselves a vacation at the same time gas prices are preventing Americans from taking vacations of their own. And some around here wonder why Congress' approval rating is at 9%. 

The July 28th issue of Time Magazine showcased a rather scathing essay lambasting the inaction of the 110th Congress entitled, Throw the Bums Out.

"The 260 laws passed by the 110th Congress represent a 30-year low, and they include the naming of 74 post offices, not to mention the nonbinding resolutions designating July National Watermelon Month and recognizing dirt as an essential natural resource. Approval of Congress has sunk to a record low: 9% of people in a Rasmussen poll think lawmakers are doing a good or excellent job. The happiesth news in this for the Democrats running the place is that about 40% of voters think the Republicans are still in charge."

Let me tell you something:  If the Republicans were in charge, we’d be taking action to tap into American energy resources and cut the price of gas now. 

The Democrats are demonstrating politics at its worse. Rather than acting now on crucial issues like energy reform, they're simply going through the motions, pointing fingers and playing political games.  And, they’re skating by unscathed:  As this essay points out, most Americans wrongly believe that Republicans are still in charge.

We can act now to bring energy costs down, but sadly the Democrats have chosen political posturing over political action.

Here is the video of my appearance on Fox Business this morning discussing the fall-out sure to come if the Senate passes and the President does not veto H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act of 2008.



I was extremely disappointed that the House passed the housing bail-out bill. This legislation misses the mark and does nothing to address the foreclosure problems our nation is currently facing. Instead of making it easier for America’s hard working taxpayers to make their monthly mortgage, this bill forces them to pay more to fund a misguided, massive housing program.

At a time when so many families are struggling to pay skyrocketing food and gas costs, the last thing they need is another bill from Washington.

While rewarding irresponsible lenders and borrowers, and propping up the overextended, financially unstable Fannie Mae and Freddie Mac, it does absolutely nothing to ensure that we don’t get into this situation again sometime down the road.

Washington should be concerned about helping families that can’t pay their mortgages, but increasing government and taxes doesn’t help them – it hurts them. Congress should truly consider the consequences of this action before it makes matters worse.

Following up on the Democrats’ Budget Conference Report that passed the House last Thursday, I'd like to reiterate again how irresponsible and damaging the budget will be if appropriated in its current form.  However, I think Democrat Congressman Bill Foster (IL-14) does a pretty good job blowing the lid off exactly how bad his own party's plan actually is.

His release from last Thursday states:

“I can’t support a budget, from either party, that raises taxes on the middle class. This bill hurts families all across the 14th District by eliminating the 10-percent bracket for lower-income taxpayers, reinstating the marriage penalty and increasing taxes on small businesses and investments."

Rep. Foster is one of 14 Democrats who joined with 196 House Republicans in voting against it. To all the detractors who say that my colleagues and I are only offering partisan rhetoric about this budget, I don't think Rep. Foster and other Democrat House colleagues would agree. There is bipartisan agreement that the budget in its current form destroys the wallets of the American taxpayer.

Recently, Congress passed what it calls "critical" funding measures to protect our "great cats" and "rare canids" and to "conserve our cranes." Pressing legislation, right? Let me fill you in on what Congress is doing with your tax dollars.

H.R. 1464 - the Great Cats and Rare Canids Act of 2007, brought to us by Rep. Udall (D-NM), would establish a new grant program to provide money to individuals or groups that work to conserve rare cat and canine species in foreign countries. In order to fund the grant program, H.R. 1464 would establish the "Great Cats and Rare Canids Conservation Fund" within the Multinational Species Conservation Fund and authorize $25 million through FY 2013.

$25 million to fund rare cat and dog conservation in foreign countries?  Animal preservation programs overseas should be funded by private philanthropic organizations and not taxpayers – or at the very least, the foreign countries in which they’re being conserved.  What’s worse:  H.R. 1464 would increase direct spending without any offset.  If this program is so important, the Democrats should have cut spending elsewhere to pay for it.  Instead, the cost will be borne by taxpayers in the form of higher taxes or by our children in the form of a growing government budget.

H.R. 1771 - Crane Conservation Act of 2007, brought to us by Rep. Baldwin (D-WI), would establish a new grant program to provide money to individuals or groups that work to conserve crane species in Africa, Asia, Europe, or North America.  In order to fund the grant program, H.R. 1771 would establish the “Crane Conservation Fund” within the Multinational Species Conservation Fund and authorize $25 million through FY 2013.

Sound familiar? Once again the problem is that we're authorizing $25 million over five years to fund crane conservation on four continents. Again, we’re increasing spending without any offset.

How’s that for fiscal responsibility!

This afternoon, the House passed the Budget Conference Report by the razor thin margin of 214-210. Close, but still a grave warning that we are one step closer to Congress' tax and spend bonanza. If the Democrats get what they want and this budget passes in its current form, Americans will be hit with the largest tax increase in American history.

The plan has been put in place, but now it has to be appropriated.  What that means is that now Congress will set specific funding levels for specific programs and agencies to fill in the blanks in this budget.  There’s still a chance for Congress to show some respect for hard-working taxpayers and keep government spending low, cut wasteful spending, and pass real tax relief.  Hopefully, Congress will come to their senses before it's too late.



My colleague Congressman John Campbell has a great post on his Green Eyeshade Blog about how this will affect a family with two children:

The Davis Family: A Middle Income Family in Middle America

This afternoon, the House is scheduled to take up  H.R. 3021, the 21st Century Green High-Performing Public School Facilities Act. The goal of this bill is to use federal funds for modernization and construction projects for schools across the country. Once again, we see the federal government substituting its judgement for local parents, teachers, and school boards.

Senior Republican Member of the Committee on Education and Labor Buck McKeon (CA) has been at the forefront of this battle against Washington-controlled school construction, and he does a great job laying out the facts against it:

"The problem is that the federal government has historically had an extremely limited, almost non-existent, role in financing school construction projects, which have been a state and local responsibility. The federal government has deliberately focused its attention and funding on programs that improve student achievement such as funding Title I grants to local educational agencies to help educate low-income and other disadvantaged students and the Individuals with Disabilities Education Act (IDEA), which helps states and school districts provide special education for children with disabilities.

"The 21st Century Green High-Performing Public School Facilities Act (H.R. 3021) creates a massive and unproven $20 billion federal school construction program that undermines efforts to increase funding for important education priorities such as Title I and IDEA. The bill would undermine efforts at the state and local level to build and modernize schools while significantly expanding the size and scope of the federal government."

Not to mention the fact that the $20 billion cost of this bill wouldn't even come close to the $112 billion price tag that the National Center for Education Statistics estimates would be needed to complete school construction and renovation projects across the nation.  But hey, what's $20 billion of your money haphazardly thrown at a project that we have no intention of completing? This bill is nothing more than feel-good legislating. It's not about education; it's about photo ops.

H.R. 3021 would seriously interfere with the responsibility of state and local agencies to handle school construction. It would drastically impact programs that serve disadvantaged students. And it does all this without having any real and meaningful impact on our educational infrastructure.

I told you yesterday I'd be posting a recent column I sent to local Chambers and Rotaries in my district, and here it is.

I'd love to know your thoughts about the legislation mentioned within it, namely the Spending Limit Amendment, the Truth in Accounting Act, and the Tax Increase Prevention Act.

If Congress was to successfully pursue these three measures, our economy would have the solid foundation it needs to get us going on all cylinders once again.

Hi everyone!

It's taken some time, but I'm finally here and ready to start blogging! It's unfortunate that many of my colleagues in Congress haven't yet tapped into this vital online resource (I should talk, it's taken me this long!), but there's an entire community to work with who have long abandoned the morning newspaper and 6pm newscast.

I've got my own channel going on YouTube. I'm making new friends on Facebook, and best of all,  I'm enjoying my time doing it.

I want to thank Townhall for facilitating this site and the work they do is second to none.

There's a lot going on in Congress including the Farm Bill and the War Supplemental, and I'm trying to figure out the best way to kick this blog off. I'll have a new post up very soon, but just wanted to start the conversation.

Michele

Oh and by the way, check out my blog roll to the right and you can see my other colleagues who have blogs of their own.