Jack Kingston

Less than a week after rejecting a similar bill, the House today passed a bailout intended to shore up the nation’s financial markets.  Congressman Jack Kingston (R/GA-1), who voted against the package both times, expressed concerns that the bill will not accomplish the task at hand.

“Rather than righting the ship, we’ve run for the lifeboats,” Congressman Kingston said.  “While the core bill has been improved since Monday, I’m still unconvinced it will avert an economic downturn.  I hope I’m wrong but suspect we will be back soon for further debate.  The economy will remain my highest priority and I will continue to fight for the alternatives not included in this bill.”

Largely the same as the version the House previously rejected, the bill authorizes the Treasury Department to spend up to $700 billion in a Troubled Asset Relief Program to purchase “toxic” mortgage-backed securities.  It also gives the Treasury Secretary the option to create an insurance program for the securities in which participating companies would be required to pay premiums.  Participating firms would be subjected to executive pay restrictions, limits on “golden parachutes” for departing executives, and would allow the government to take equity stake in their company.

Changes to the bailout, added by the Senate which passed the measure overwhelmingly on Wednesday evening, included a provision allowing banks that held Fannie Mae and Freddie Mac to count any losses as ordinary losses against their income.

The Senate also added tax provisions that extended breaks for producers of renewable energy, an Alternative Minimum Tax patch that prevents 22 million taxpayers from paying a tax originally meant for the wealthy and optional deduction for state sales taxes.  The package also included tax earmarks that for such things as rum production in Puerto Rico and the Virgin Islands, wooden arrows for children, and NASCAR racetracks.

Public outcry against the bailout was unprecedented.  Calls from constituents strained the Capitol’s phone systems and caused crashes of several websites as well as email services.  In an effort to better educate his constituents about the issue, Congressman Kingston created a website locate at http://kingston.house.gov/bailout to provide timely information.  Meant to serve as a clearinghouse, the website contains bill text, summaries, and analysis as well as opinion pieces, press coverage, and multimedia.

The President must now sign the bill into law before it is enacted.
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