Sen. Cornyn On Relief Plan: "...Not The Time To Throw Another Trillion Dollars Into The Air..."

Sen. Cornyn Disappointed Democrats’ Economic Plan Fails To Employ Bipartisanship, Real Tax Relief, & Transparency.

WASHINGTON, D.C., Jan. 29, 2009 -— U.S. Sen. John Cornyn, R-Texas, a member of the Senate Finance Committee, today issued the following statement with regard to the $1 trillion bailout proposed by Democrat leaders in Congress:

“I was hopeful that my colleagues and I could work together in a bipartisan fashion to institute and promote real solutions to revive the economy, but sadly that is not the case. With a deficit projected to hit $1.2 trillion, this is not the time to throw another trillion dollars into the air and hope for the best.

“We need to come together to craft legislation that provides real relief for average, everyday Americans. It should begin with providing much overdo relief to the struggling housing market. Secondly, the majority of any economic stimulus plan should be tangible tax relief for families and small businesses. Hard-working Texans deserve to keep more of their own money to spend, save and invest how they see fit. Finally, any proposed new spending must be made fully transparent to ensure Congress is not spending taxpayer dollars on unnecessary or ineffective projects. If American families are having to tighten their belts and make tough financial decisions, the federal government should do no less.

“We should be able to present the American people with a final economic rescue product that reflects bipartisanship, true tax relief, and tangible economic growth measures that would yield immediate relief for our ailing economy. Today, I can safely say the $1 trillion ‘economic rescue plan’ is no such product.”

On ‘tax relief’:
“My frustrations are numerous. Chief among them is the Democrats’ attempt to pull the wool over the eyes of the American people when it comes to tax relief. President Obama requested that 40 percent of the plan be dedicated to meaningful tax relief. In reality, only 24 percent of the bill is dedicated to actual tax relief. During the Senate Finance Committee’s consideration of the proposal, the Majority voted against two amendments I offered that would have provided all taxpayers with more tax relief by lowering the 10 percent bracket to 5 percent and eliminating capital gains and dividends tax for middle-class taxpayers. Only 2.7 percent of the entire bill is slated for tax relief for small business owners—the backbone of our state and nation’s economy. Hard-working Texans and small business owners are my first priority when it comes to any efforts to stimulate the economy, and the Democrat proposal falls unacceptably short in real savings and true tax relief.”

On “stimulus spending”:
“With respect to Texas’ interests in the economic rescue plan, the most simple analogy that comes to mind is ‘robbing Peter to pay Paul.’ In Texas, we have embraced the ideals of low taxes and pro-growth policies that support our small businesses and middle class families. As a result, Texas has fared better than most during the current recession. While I fully support providing more tax and housing relief for Texans and putting policies in place that create jobs for Texans looking for work, I do not support capitalizing on Texas’ fiscal discipline to bail out less responsible states. Yet this is exactly what the Democrats’ plan would do. The plan would take billions in Texas taxpayer dollars and reward states who have been reckless spenders with pet projects dressed in ‘stimulus’ clothing.”

On ‘transparency’:
“As a strong advocate for open government, I am disappointed the economic rescue plan lacks the real kind of government transparency President Obama has promised. For starters, this plan was crafted largely behind closed doors without bipartisan input or support. Further, while the bill creates an ‘Accountability and Transparency Board,’ the non-partisanship necessary to make a board like this effective is missing. All members of this board will be hand-picked by the President, with no involvement from Congress. This board should include members from both parties who are committed to open government. As we’ve learned from past mistakes such as TARP, true transparency must be central to any new spending. The American people deserve to know how their tax dollars are being spent.”

Fast Facts about the Democrats’ economic rescue plan:

* The plan establishes at least 32 new government programs at a cost of over $136 billion. That means more than a third of this plan’s spending provisions are dedicated to creating new government programs.
* Even though the legislation contains at least 152 separate spending proposals, the authors of the plan can only say that 34 have any chance at keeping or growing jobs.
* The Congressional Budget Office has issued a report showing that much of the stimulus spending would not occur quickly and therefore won’t help the economy now.
* Although the proposal has been billed as a transportation and infrastructure investment package, in actuality only $30 billion of the bill – or three percent – is for road and highway spending.
* Examples of pet projects Democrats wanted included in the rescue plan:
- $600 million for new cars for the federal government.
- $335 million for STD prevention
- $50 million in funding for the National Endowment of the Arts.
- $44 million for repairs to U.S. Department of Agriculture headquarters.
- $200 million for the National Mall, including $21 million for sod.
- $4 billion in assistance for "nonprofit entities or consortia of nonprofit entities” including ACORN, which is currently under criminal investigation.