Paul Tonko Statement on Economic Recovery Plan

Statement

Paul Tonko Statement On Economic Recovery Plan

Tonko supports bill, but with reservations

"I support the action taken by the House of Representatives yesterday to pass the Economic Stability Act. Although I strongly disagree with several aspects of this legislation, these actions are necessary to ensure the continued flow of credit that allows families to buy homes and send their children to college. I believe the threat to the well-being of working families caused by not acting far outweighs the reservations I have about this legislation.

"This bill does not go far enough to help people who are in danger of losing their homes. More foreclosures will mean more instability for the housing and financial markets. I believe that bankruptcy judges must be allowed to change the terms of distressed mortgages to prevent more foreclosures. This bill also includes questionable add-ons, including more tax breaks for oil companies, which certainly are not struggling.

"Another part of this bill that I find very troubling is what I believe are serious conflicts of interest in the administration of this plan. The bailout will be orchestrated by five Bush administration officials, including Treasury Secretary Henry Paulson who is the former CEO of Goldman Sachs, one of the firms that will benefit significantly from this plan. The Congressional oversight committee must watch very closely to ensure that no conflicts of interest affect the disbursements of taxpayer dollars.

"The bill does include protections for taxpayers, including provisions that will allow taxpayers recover their investment when the financial industry returns to profitability. The bill is also an improvement from the Bush Administration's original plan

"There is more work to be done. Despite this rescue plan, we will still face serious economic challenges in the months ahead. Leaders in Washington need to address the factors that led to the failure of the markets and take steps to provide responsible and effective regulation that will make sure this crisis never happens again.

"There are more immediate issues that Washington failed to address, like the record home heating prices facing families this winter. These record prices, combined with record gasoline and food prices, will leave many Capital Region families struggling. Congress must act to increase funding for the Low Income Home Energy Assistance Plan (LIHEAP). In Congress, I pledge to work in a bipartisan manner to increase LIHEAP funding so people on low and fixed incomes don't have to make the choice between feeding their families and heating their homes."

Paul Tonko is the former President and CEO of NYSERDA and served in the New York State Assembly from 1983 to 2007. He announced his bid for the 21st Congressional District on May 20, 2008 among friends, elected officials and union members.

On September 9, Paul won the Democratic primary. On Election Day, November 4, Paul will appear on the Democratic and Working Families Party lines.

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