Simpson's Response to Economic Rescue Bill

Press Release

Idaho Congressman Mike Simpson today voted to support the Economic Rescue Bill. This vote was cast not to protect the fat cats on Wall Street, but to help Main Street by stopping the decimation of saving and investments, and the inability for businesses to borrow money for improvements and to pay their employees.

"I did not make this vote lightly. Rather, it was one of the toughest votes I have ever cast," said Congressman Mike Simpson. "I voted yes on the bill because I sincerely believe the greater risk for taxpayers is in not acting. The bill we voted on made substantial improvements over the President's initial offer including robust protections for taxpayers, an end to golden parachutes for corporate executives, and substantial limits on how the Treasury can use the funding made available. My first priority in looking at this bill was protecting taxpayers, retirees, small businesses, farmers, and Idaho families from the fallout of a major economic decline. I am not sure where we go from here but whatever course of action is required by Congress I will continue to focus on its impact on the people of Idaho - not the fat cats of Wall Street."

Simpson's support of the bill stemmed from several key changes made to protect taxpayers over the last week including:

· No Pet Projects for Special Interest Allies. The final measure directs all net benefits back to the Treasury to pay down the national debt.

·No Tax Increases. The proposed compromise simply required a proposal from the Administration to recoup any losses after five years. The final measure included tax cuts for struggling community banks.

·Real Accountability to Protect Taxpayers. In general, the initial Treasury Secretary is limited to purchasing up to $250 billion outstanding at any one time. If the Treasury needs to use another $100 billion, the President must certify this action and report to Congress. Further spending requires congressional action.

·Real Oversight to Strengthen Taxpayer Protections. Treasury's initial proposal had minimal oversight to protect taxpayer dollars and House Republicans rejected it. Instead, the proposal created a Financial Stability Oversight Board, a Special Inspector General, and a Congressional Oversight Panel.

·Equity Stake for Taxpayers. Any AIG-type deals in the future require mandatory equity interest in order to provide taxpayers with potential future benefits. All auctions require a percentage of equity or debt based on the level of participation in the program.

The bill failed with a final vote of 228-205.

Source