Sen. Cornyn Statement In Support Of The Economic Rescue Bill

Statement

Sen. Cornyn Statement In Support Of The Economic Rescue Bill

Says Costs of Inaction For Texas Families & Small Businesses Is Far Too Great

U.S. Sen. John Cornyn, R-Texas, a member of the Senate Budget Committee, made the following statement this evening regarding his support for the Emergency Economic Stabilization Act.

"Over the last several weeks, we have been presented with a complex and difficult choice about how to repair our faltering economy and prevent a very serious financial collapse. Like many Texans, I am incredibly frustrated and angry that we find ourselves in this situation.

"Those who got us into this economic mess must be held accountable. Heads ought to roll starting with the Wall Street executives who engaged in irresponsible, risky, and perhaps even illegal conduct. That is why I've called on the Attorney General to conduct a swift and immediate investigation. I will also insist that the Department of Justice and FBI have all the necessary resources to investigate and hold responsible those who broke the law.

"Congress should also hold itself accountable. More than two years ago, a group of Senate Republicans, including myself, recognized the precarious financial situation of Fannie Mae and Freddie Mac, and tried to pass real reforms that would protect taxpayers. Unfortunately, our efforts were blocked by partisan politics and backroom deals. That was unacceptable then, and it's unacceptable now. With passage of this economic rescue bill, Congress must now work together on bipartisan economic reforms to prevent this from ever happening again.

"But right now, we cannot allow taxpayers, families and small businesses in Texas to pay the steep price of inaction. A widespread financial collapse will have a domino effect throughout our State. It might begin on Wall Street but it will ultimately hit Texas families and small businesses the hardest. This is not a theory or hyperbole or a scare tactic. It is a fact.

"If credit markets freeze, local banks will be unable to provide loans for small businesses, which are the backbone of our economy. I've heard from small business owners across Texas in recent days and already credit is disappearing while interest rates are rising. As small business budgets tighten, paychecks for workers will be in jeopardy, and families across Texas may be unable to pay their bills, send their kids to college or even put food on the table. We cannot allow this to happen.

"Like most Texans, I'm always wary of bills that include little accountability and transparency. The President's initial three-page proposal that gave the Treasury Secretary unlimited authority to spend up to $700 billion was unprecedented and absolutely unacceptable. That is why Republicans and Democrats in Congress worked together to make a number of improvements. This bipartisan bill provides greater management oversight and transparency, limits executive pay and eliminates golden parachutes, and places strict conditions on the use of taxpayer money. It also extends expiring tax relief for families and businesses, including the state and local sales tax deduction, which effectively provides Texans with more than a billion dollars in annual tax relief. Incentives for energy conservation and renewable energy, and a provision to keep the Alternative Minimum Tax (AMT) from hitting millions of middle-income Americans this year are in the bill as well. Finally, it includes critical tax relief measures for those communities in Texas that were hit hardest by Hurricanes Ike and Dolly.

"As I said, I am as angry and frustrated as anyone by the current situation, but the cost of inaction is too great. The retirement accounts, college education funds, and budgets of families across Texas are at stake."

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