Gohmert: Geithner's Plan "Insufficient", Lacks Solutions

Texas Rep. renews call for his own 'tax holiday' plan to stimulate the economy

WASHINGTON, DC, Feb. 12, 2009 -- Representative Louie Gohmert (R-TX) Thursday joined numerous critics of Treasury Secretary Tim Geithner's plan to spend upwards of $2 trillion dollars in an attempt to stimulate our flagging economy, slamming the plan for it's lack of detailed solutions.

Testifying before Congress Tuesday and Wednesday, Geithner revealed that his financial stabilization plan might cost around $2 trillion, that being in addition to the $790 billion that Congress appropriated for the Troubled Asset Relief Program (TARP) last year. However, he provided scant details about how the money would be spent, or how toxic assets would be purchased or handled.

Markets in the U.S. and around the world reacted negatively on the news. The Dow Jones Industrial Average fell about 330 points Tuesday as word of the eye-popping proposal reached traders. The broad consensus of fund managers and bankers was that the plan lacked sufficient detail and specificity to allow the markets to make an educated judgment about its chances of success.


Geithner attempted to quiet critics during a second day of testimony Wednesday.

“I understand the desire for details and I understand the disappointment about the lack of details,” Geithner said. "But part of the disappointment is because people were hoping that we do things that, in my judgment, would have been too generous and not responsible for the taxpayers’ money.”

But in a statement released Thursday calling the Geithner plan vague and disappointing, Gohmert said the new Treasury Secretary was playing follow the leader behind Henry Paulson, the previous Treasury Secretary under President Bush.

"We must take very seriously the economic challenges facing our nation, and in the process of seeking solutions, one of our top priorities should be accountability to the American people. However, some arrogant leaders in Washington have forsaken this essential principle, believing the federal government knows all and controls all, recklessly forging ahead with failed policies that impose tremendous and increasing risk to Americans.

“Sec. Geithner openly admitted that his predecessor’s policy “was always behind the curve,” and “added to public anxiety and to investor uncertainty.” Yet in the same breath he unveiled his own so-called ‘plan’ that’s no plan at all, but rather a continuation of Paulson’s doomed design and an ambiguous outline that leaves Americans and investors without answers. But even without crucial details, our taxpayers, citizens, and Wall Street know enough to be able to discern that the government’s spending rampage and continued meddling is wrong, and they will not go along with Geithner’s game of follow the leader."

Gohmert, who has been pushing a two month tax holiday as an alternative method of stimulus, used his comments about Geithner's plan to renew his call

“There are more effective solutions that guarantee Americans immediate relief through free market solutions. My proposal for a two month federal tax holiday serves as an alternative to the bailout and has gained overwhelming support from across the country.

"It does not require new government spending in this time when every penny counts, and it puts money earned by taxpayers immediately and directly back in their hands. Individuals will be able to catch up financially and stimulate ailing industries by paying of mortgages and credit card debt, buying more efficient vehicles, investing in stock deals, remodeling homes, having enough cash to effectively refinance, buying long delayed but needed purchases, and spending it where we need it most.

"What is more, it will help them return to having some semblance of confidence in the economy again, which is one of the most critical needs in this nation.

“It is imperative that Americans contact their representatives, senators, and the White House to let them know they want to be the ones to decide on the recipients of their own hard-earned money through this tax holiday before Geithner squanders and demands even more.”