Madam Speaker, I rise today to express my support for H.R. 1424 the Emergency Economic Stabilization Act. Nearly two weeks ago the President presented legislation to Congress requesting a $700 billion recovery package, with the Treasury…
Madam Speaker, I rise today to express my support for H.R. 1424 the Emergency Economic Stabilization Act.
Nearly two weeks ago the President presented legislation to Congress requesting a $700 billion recovery package, with the Treasury Secretary empowered to set the rules for all transactions. The bill included no safeguards, no transparency, no accountability, and no oversight. This plan was wrong for the American people and we rejected it.
The House, through bipartisan negotiations, completely reshaped the bill to include three crucial elements to rebuild our financial system. One, we reinvested in troubled financial markets to stabilize our economy and insulate Main Street from Wall Street. Two, we guaranteed that the taxpayer will be first in line to be reimbursed through ownership shares and asset recovery as the plan begins to work. Finally, the bill reformed how business is done on Wall Street including the prohibition of golden parachutes.
While I voted for the bill, it failed to gather the necessary votes for it to pass. Following the vote I returned home this week and saw, not only in my District, but all over the country, the negative effects of our continued inaction. Already, our commercial and consumer credit markets are drying up and if we continue to do nothing, the ability for my constituents to obtain home mortgages, car loans, student loans, loans for small businesses, or even credit cards will become highly difficult or impossible. Even more financial institutions and businesses could fail and millions could lose their pensions and retirement savings, thousands of jobs could be lost, and large parts of our economy could cease to function. The repercussions would be far greater than the cost of a financial rescue program.
Not only have small businesses and families felt the effect of the credit crunch, my home state of California is feeling it. According to our State Treasurer, Bill Lockyer, this current crisis threatens to deplete California's cash reserves. Without those reserves the state will be unable to pay teachers, first responders, or nursing care workers. Additionally, he thinks without action the state, ``. . . will be unable to sell voter-approved bonds for highway construction, schools, and housing or water projects.'' If we don't pass this bill the effects will almost immediately be felt throughout the country and the world.
H.R. 1424 includes strong independent oversight and transparency through an establishment of an independent bipartisan board to provide oversight, review and accountability of taxpayer funds. The Government Accountability Office will have a presence at Treasury to oversee the program and conduct audits to ensure strong internal controls, and to prevent waste, fraud, and abuse. There will be an independent Inspector General to monitor the Treasury Secretary's decisions in regard to this program and all transactions will be posted online for the public to review.
Rather than giving the Treasury all the funds at once, the legislation gives the Treasury $250 billion immediately, then requires the President to certify that additional funds are needed ($100 billion, then $350 billion, subject to Congressional disapproval) and there are limits on golden parachutes for executives whose companies participate in the program. We will help homeowners by allowing the government to change the terms of mortgages to help reduce the 2 million projected foreclosures in the next year. It will also assist school districts, cities and counties who held investments in failed institutions.
The bill temporarily raises the FDIC insurance cap to $250,000 from $100,000. It also includes three additional pieces of legislation that are critical to the health of our economy and our constituents. This legislation will extend tax credits and incentives that are important to encourage innovation and entrepreneurship. It extends tax benefits to the renewable energy industry. Solar and wind energy, fuel cells, and biofuels are but a few of the technologies that will benefit from the legislation that we are considering today, and they will all play a role in our nation's energy future. While I remain committed to totally eliminating the Alternative Minimum Tax, this bill includes a ``one- year fix'' that will prevent an additional 25 million American taxpayers from being subject to the AMT on their 2008 tax returns and it will reduce or eliminate the AMT obligation for 121,033 tax filers in my Congressional District. Finally, the legislation includes the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act, which will provide for equity in the coverage of mental health and substance use disorders when compared to medical and surgical disorders.
The vote I took earlier this week was as tough as any I've ever taken during my time in Congress and today's vote will not be any easier. I will vote ``yes'' because I believe it's the right thing do for our country.
I believe doing nothing is a higher risk to our country and would hurt millions of Americans across the nation. I didn't come to Congress to hurt people. My ``yes'' vote is to help restore confidence in our economy, help move the country move forward, protect taxpayers, help Main Street, protect pensions, protect 401Ks, and restore our credit markets and, with no rewards for those whose greed and foolishness have so jeopardized our economy.