Smith Voices Opposition to Economic Bailout

Press Release

Rep. Adrian Smith (R-NE) today voted again in opposition to legislation establishing a $700 billion economic bailout to deal with the crisis in the financial markets. The measure is similar to the economic rescue legislation which failed to pass the House earlier this week by a vote of 205 to 228.

"This was not an easy decision to make. I have friends and colleagues who I respect deeply who are on both sides of this issue. I have heard from Nebraskans of all ages, from financial industry experts, and community leaders. I appreciate their input.

"While the bill was improved from the legislation I voted against earlier this week, it is still short of workable legislation which will help correct our economy. Congress owes the American people more than political sweeteners and rushed deadlines - which rarely result in legislation we can be proud of.

"This wasn't an ‘either-or' situation. Instead of greatly increasing our national debt by over $700 billion, we should instead be looking at proposals to make tax credits available to private investor groups which agree to purchase bad loans. We should reduce corporate and capital gains taxes to encourage capital formation and boost asset values. We should also look at breaking up Fannie Mae and Freddie Mac, as Congress did with Ma Bell. But because this legislation was negotiated by just a few Members and brought to the floor with no possibility of amendment, these ideas were not even debated. We didn't have a single Congressional hearing. Instead, we rushed to bring a bill which does exactly what we shouldn't be doing - adding a crushing financial burden to American taxpayers," Smith said.

The bill authorizes the Treasury Secretary to spend up to $700 billion to relieve faltering banks and other firms of bad assets backed by home mortgages, which are falling into foreclosure at record rates. The plan also contains amendments added by the Senate providing $192 million over ten years for rum excise taxes to Puerto Rico and the Virgin Islands, $100 million over ten years for motorsports race track properties, and $81 million over ten years to encourage film and television productions in the United States.

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