I, along with 28 other members of the House Financial Services Committee, have sent a letter to the Committee's Chairman Barney Frank, urging him to invite former executives of Fannie Mae and Freddie Mac to testify at the scheduled hearing on October 21 on restructuring and reform of the financial system.

I've also requested hearings on alleged abuses by the Association of Community Organizations for Reform Now (ACORN), which receives significant funding from Fannie Mae, Freddie Mac, and the Department of Housing and Urban Development and has made many headlines in recent weeks for alleged election fraud.

The non-partisan Tax Foundation released their 2009 State Business Tax Climate Index earlier this week, and Minnesota was in the spotlight. Minnesota made the list of the ten WORST states for businesses, coming in at 41 - not exactly the place we want to be in today's already sluggish economy.

The foundation notes, "The modern market is characterized by mobile capital and labor. Therefore, companies will locate where they have the greatest competitive advantage. States with the best tax systems will be the most competitive in attracting new businesses and most effective at generating economic and employment growth."

The Index has been published yearly since 2003. It ranks states based on the taxes that matter most to businesses and business investment: corporate tax, individual income tax, sales tax, unemployment tax and property tax.  The states are scored on these taxes, and the scores are weighted based on the relative importance or impact of the tax to a business.

For more background on their findings, click here.

To read the full report, click here.

Last week, I voted twice against the nearly $1 trillion Wall Street bailout bill in the U.S. House. The first bill (with a $700 billion price tag for taxpayers) failed with an overwhelming bipartisan majority.  Then the Senate passed a second version that was loaded with tax "sweeteners" in an attempt to attract enough lawmakers in the House who voted "Nay" the first time around to switch their vote to pass the bill. That jacked the price tag up to $810 billion.  You've got to love Washington.

We were supposed to be voting on a financial bailout bill, but unfortunately we got much, much more.

Taxpayers for Common Sense have listed their Top 10 Tax Sweeteners in the recently passed Bailout Bill. As the organization notes, not all of these are outrageous on their own, but when we are supposed to be voting on a bailout package that is already putting the American people further in debt, these extras are the last thing that should be thrown into the mix as political currency to attract votes. They should have been dealt with at another time.

1.) Sec. 503. Exemption from excise tax for certain wooden arrows designed for use by children ($2 million)

2.) Sec. 317. Seven-year cost recovery period for motorsports racing track facility ($100 million)

3.) Sec. 308. Increase in limit on cover over of rum excise tax to Puerto Rico and the Virgin Islands ($192 million)

4.) Sec. 301. Extension and modification of research credit ($19 billion)

5.) Sec. 504. Income averaging for amounts received in connection with the Exxon Valdez litigation ($49 million)

6.) Sec. 601. Secure rural schools and community self-determination program ($3.3 billion)

7.) Sec. 201. Deduction for state and local sales taxes ($3.3 billion)

8.) Sec 502. Provisions related to film and television productions ($478 million)

9.) Sec. 325. Extension and modification of duty suspension on wool products; wool research fund; wool duty refunds ($148 million)

10.) Sec. 309. Extension of economic development credit for American Samoa ($33 million)

Check out Taxpayers for Commonsense for more information on these provisions and several others.

The bailout bill that the U.S. Senate passed late Wednesday night is not the remedy for what ails this nation's economy. While we are all anxious to take action to help America recover from it's current financial crisis, it does us no good to pass a bill that does not address the underlying problem before us, and that's the credit crunch.

After the defeat of the original proposal in the House on Monday, Congress had an opportunity to really address some of the shortfalls of the failed bill. Instead they loaded on millions of dollars in pork barrel spending and a couple of other "treats" to lure members of Congress who voted "Nay" the first time around to reconsider their vote. From tax incentives to mental health parity (which, by the way, deserve their time to be considered and voted upon), they should not be strategically placed into a bill of this magnitude that is supposed to specifically address the credit crunch facing our nation. It is irresponsible, and proof enough that Congress deserves its 10% approval rating. Instead of being a source of calm in the eye of a storm, a good many lawmakers have lost their good sense and jumped overboard to back a bill that does nothing to really address our current financial crisis, other than give Americans a false sense of economic security.

There are simple steps that we can take to make the problem in front of us much smaller, and much easier to handle. The Free Market Protection Act (H.R. 7223) is an alternative economic rescue plan that puts us on a better path to attack the roots of the current crisis. Among other things, it would suspend the capital gains tax, schedule the government-sponsored enterprises (Fannie Mae and Freddie Mac) for privatization, and suspend mark-to-market accounting requirements.

Take a look at it in more detail here .

And, there are steps that the SEC, FDIC, and FASB can take already within their regulatory authority to make a real difference.

We must be calm, and while we should work speedily, we must not work hastily. Sadly, the bill passed by the Senate that is now in the House is a result of the "urgent" need to pass "something," rather than the "right thing."

 

While the focus of everyone's attention right now is on the economy, it wasn't too long ago that the big issue in front of Congress was energy. It's safe to say that at least some of the economic hardship that Americans are facing today can be directly related to our lack of energy independence.

Today, the Congressional moratorium on off-shore drilling and oil shale expires, and Republicans can take solace in knowing that our insistent calls for the Speaker of the House to address this issue paid off... at least for now. Even more so, the pressure that Americans put on Congress to address the energy issue went a long way in forcing Speaker Pelosi's hand on this issue.

However, much more work needs to be done so America can actually start tapping into this energy potential. We must pass legislation that expedites the leasing and permitting processes and safeguards energy companies from frivolous and unwarranted lawsuits that can stall the production process for several years.

To see the letter to Speaker Pelosi I signed with 154 other members calling for the expiration of the moratorium, click here.

Yesterday, Congress voted on what is arguably the single most important issue facing our country today.  A $700 billion, taxpayer-funded Wall Street bailout package was presented for a vote with absolutely no opportunity for debate or consideration of alternatives.  Every Member of Congress who spoke on the floor, every Administration official involved in the negotiations on the package, and every commentator has said that this is a bad package.  Many of them, however, have said that Congress had no alternative but to pass it.

I disagree, and so did a solid bipartisan majority of the House of Representatives who voted against this package.  Congress must sit back down and demand that the Bush Administration take into consideration some of the very valid alternatives being discussed.  There is no reason that Congress needs to rush into passing a bad bill that would saddle generations with debt.  The American people deserve a more thoughtful response.

Check out an alternative proposal to which I'm a co-sponsor of here.

For anyone trying to submit an email to a Member of Congress, the U.S. House is limiting e-mails from the public to prevent its websites from crashing due to the enormous amount of mail being submitted on the financial bailout bill. 

As a result, some constituents may get a 'try back at a later time' response if they use the House website to e-mail their lawmakers.

We apologize for the inconvenience, and you're encouraged to call our Washington or Minnesota offices with comments or questions.

Washington, DC: 202-225-2331
Woodbury, MN: 651-731-5400
Waite Park, MN: 320-253-5931

Thanks for your patience.

For those who want to learn some more about the roots of the financial markets crisis we are experiencing today, check out this editorial from Investors Business Daily. I think it's important to examine the past to prevent a similar crisis in the future.

'Crony' Capitalism Is Root Cause of Fannie and Freddie Troubles

"In the past couple of weeks, as the financial crisis has intensified, a new talking point has emerged from the Democrats in Congress: This is all a "crisis of capitalism," in socialist financier George Soros' phrase, and a failure to regulate our markets sufficiently."

The country is buzzing with news of a potential $700 billion bailout of our financial services sector by the taxpayer. I've received hundreds of calls this week from constituents who share my skepticism about this potential bailout. Most of them have asked how we got into this problem in the first place, and they deserve an answer.

Fox News has does a nice job tracing the steps of this crisis. You'll notice that many of the Congressional leaders responsible back then are now the ones trying to steer us out of this mess. Scary, huh?

It seems that Democrats have come to their senses, at least for now anyway.  Appropriations Chairman David Obey (D-WI) has reportedly said that the funding resolution for Fiscal Year 2009 will NOT extend the moratorium that currently prevents exploration in the Outer Continental Shelf and for Oil Shale.  That moratorium is currently set to expire on October 1.

Republicans and all Americans can claim victory knowing that our tireless dedication, most notably during the August recess when the Democrats were on vacation and Republicans continued to press for opening up our energy resources, has forced the Democrats' hand.  But this is by no means the end of the story.

The Democrats will wait out the election and if they take the White House, you can bet that the executive branch moratorium on offshore drilling lifted by President Bush will once again be put in place. Not to mention that there's still a chance that the Democrats' "no energy" energy bill that they forced through the House last week could find its way through the Senate and onto the President's desk.

Furthermore, simply because this moratorium will expire on October 1 does not mean that energy production will start on October 2. What it does mean is that we can now begin setting plans that will allow for American energy production and eventual energy independence. My legislation to cut the red tape on energy production can certainly fast track things, but the Democrat leadership is sitting on it.  In fact, they’re sitting on most any real energy legislation.

We won a battle, but the fight for American energy independence wages on.
  

For those who may be reading from outside the district, more than 120 people were displaced from their homes Saturday when a fire destroyed the 60-unit Lions Park Apartments in Elk River, Minnesota. Luckily, no one was injured in the blaze, but so many people lost their homes and their belongings.

Here is a link to the Elk River City website for folks affected by the incident and for those citizens who are looking to help. Information about giving and receiving donations is provided below.

Donations:

Alliance Church, 829 School Street, will be open every day through Sunday, September 28, from 1:00 p.m. to 8:00 p.m., to allow fire victims to receive household items. They will also be accepting donations from citizens.

The following items, in particular, are needed:

Household items - there is no need for clothing at this time but household items are still needed.

Monetary donations- The Bank of Elk River is accepting monetary donations. Please make checks payable to "ER Fire Victims." You may also mail your donations to Hope Filled Hands, PO Box 150, Elk River, MN 55330. The Red Cross is also accepting donations.

Food donations - CAER is in high need for food donations. You may drop them off at 19279 Watson Street NW, Elk River. You may also drop off food donations at Alliance Church, between the hours of 1 p.m. and 8 p.m. The church is located at 829 School Street, Elk River.

Faced with a looming bail-out of the financial sector hovering around the $700 billion dollar mark, I’ve signed a letter written by Congressman Joe Barton (Ranking Republican on the House Energy and Commerce Committee) urging the President to consider opening up ANWR and the Eastern Gulf of the OCS to improve our energy security, lower energy prices, and provide needed revenue to the Treasury to help shoulder the burden the bail-out will place on the American taxpayer.

Here's a portion of the letter:

"As we work to strengthen our markets through an assistance package, we should also offset some of the liability, without raising taxes.  This package should contain some means to pay at least part of the cost of rescuing these financial giants, and do it without asking the taxpayers to shoulder a burden which is, after all, not their responsibility.  We therefore encourage you to include legislative language that would open up ANWR to leasing, along with the Outer Continental Shelf of the Eastern Gulf. 

The Congressional Research Service reports that in ANWR alone, if producers were able to recover 10.3 billion barrels of oil over the life of the properties - with prices at $125/barrel - the federal government could collect $191 billion in revenues over the production period, estimated to be at least 30 years once production commences.

Allowing lease sales in these areas, will not only increase revenue to the Treasury through royalties and corporate income taxes, but will also improve our energy security...."

I think it's only fair for Congress to look for ways to help offset the cost to the taxpayer of this trillion-dollar bail-out with revenues. While this isn't the only solution, it sure is an innovative one to help us navigate through our current financial crisis while protecting the American taxpayer and increasing American energy independence.

Yesterday, I joined several House colleagues to urge the Democrat controlled Congress, the Treasury, and the Federal Reserve to act with greater transparency and responsibility for the taxpayer when it comes to the financial markets crisis rattling our nation.

Check out the Wall Street Journal's Market Watch coverage of the press conference here.

Taxpayers must not be left on the hook to the tune of billions of dollars -- possibly in the ballpark of $500 billion -- in government-backed bailouts. If government is propping up Wall Street and taxpayers foot the bill for the government, that makes Americans the last line of insurance in these unstable financial times.

The question becomes:  Who will left to bail-out the taxpayer who is already saddled with a debt of about $455,000 per household just for runaway entitlement spending?

The government is embarking on a very dangerous path, and the recent financial takeover of AIG Insurance is an action we must not be quick to replicate. Privatizing reward and socializing risk is essentially rolling the dice with our nation's financial security and it is a surefire recipe for disaster for our economy.

If we bail out one, another lines up for their hand out, then another, and another, and another. If this keeps up, everyone from Starbucks to JC Penney's will see themselves as too big to fail and they too may be knocking on the doors of the Treasury looking for their bail-out.

Investor's Business Daily had a great editorial on this issue yesterday, too.  Check it out here.

Late last night, the Democrat Rules Committee decided to allow debate on ZERO amendments to the Democrats’ new energy gimmick bill. It is a closed bill, so no amendments can be offered, and no compromise can be reached.

They made this decision over Republican objections, in the dead of night, and less than 12 hours before the House would begin consideration of the bill.

Not only is their approach wrong; but so is their bill. Their bill bans drilling in 9/10ths of our off-shore reserves and bans exploration in ANWR entirely. They’re blocking nuclear power. They’re blocking coal-to-liquids. They’re blocking oil shale and the list goes on. Really, they’re blocking All-of-the-Above.

At the same time, they’re increasing utility costs for consumers who are already concerned about imminent high heating bills. That’s the last thing our already tight family budgets need right now.

The Democrats know this bill is seriously flawed, and it’s simply a political gimmick. They’re not really trying to address the issue, but rather trying to cover their backs during a tough election season. The truth is the Democrat leadership has failed the American people on energy reform. Don’t be fooled by their charade.

Devil's Advocate of Copious Dissent is doing some nice work getting people's feedback about the direction our nation should be taking with our energy policy.

The Partnership for America's Energy Security is providing a way for citizens throughout the nation to voice their concerns, comments, or encouragement to the Minerals Management Service of the U.S. Department of the Interior about expanding offshore oil and gas development for the years 2010-2015.

The Minerals Management Service is the federal bureau that manages the nation's natural gas, oil, and other mineral resources on the outer continental shelf (OCS).

Now's the time to make your voices heard, but they ask that comments are sent no later than September 15th,  so you've got a small window to provide your feedback.

Here's the link to the MMS' 5-Year Program comments page.

I hope you'll go on record in support of expanding the ongoing search for oil and natural gas to the 85% (574 million acres) of the Outer Continental Shelf that is currently off-limits to exploration and production.