-- Randy’s Roundup --

A Weekly Newsletter from Congressman Randy Neugebauer

March 2, 2009

President Obama’s Budget Proposal

The era of big government is back. With the budget deficit approaching $2 trillion, now is the time to reduce new government spending. Unfortunately, President Obama is proposing that the federal government borrow more, spend more and tax more.

During a time of economic instability, raising taxes on families and small businesses will not create long-term job growth or stabilize the economy.  A responsible federal budget would reign in government spending, not propose to increase spending by 24 percent this year and double the national debt over 10 years.

The American people deserve a budget that puts fiscal discipline and jobs first. As Congress and the President work through the annual budgeting and spending process, we must find a common ground and hold Washington fiscally responsible.

The Federal Government Must Stop Supporting Broken Banks

After hearing Citigroup’s and the U.S. Treasury Department’s announcements regarding conversion of preferred shares held by the government to common shares, I was outraged. I believe the federal government should not make taxpayers common shareholders in American banks. This action only expands the government's intervention in the financial sector and puts taxpayers at further risk.

Last week, I introduced H.R. 1180, which would prevent the U.S. Treasury Department from converting the preferred shares it now holds in banks into common shares.  My bill would also prevent Treasury from purchasing common shares moving forward and from purchasing preferred shares it intends to convert to common.

The federal government needs to keep the taxpayers’ investment in preferred shares because those pay dividends and because holders of preferred shares are first-in-line to recover their investment should a company go under.

I believe the federal government must be held accountable for the decisions made on behalf of America’s taxpayers. We need to stop sweetening bailouts for broken banks and instead bring more certainty to government policies in order to bring private capital off the sidelines and into the economy.  The federal government cannot continue down this path of beefing up balance sheets for institutions that are not performing.

Texas Independence Day

I would like to wish all my fellow Texans a happy Texas Independence Day.

Texas Independence Day marks the anniversary of the Texas Declaration of Independence, the formal separation from Mexico. The Texas Declaration was adopted on March 2, 1836 by the Convention of 1836.

The convention, which met at Washington-on-the-Brazos, was organized to draft a statement regarding the function and responsibility of government as well as provide a list of grievances with Mexico. The Texas Declaration, signed by 57 men, accused the Mexican government with abuse of power and failing to provide the citizens of Texas with the basic government principles like freedom of religion and trial by jury.

Upon completion of the declaration, the Republic of Texas was formed along with an interim government. Texas would remain a republic until December 29, 1845, when Congress admitted the republic into the United States.

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As always, when events unfold in Washington, I will be sure to update you. In the meantime, do not hesitate to visit my website or call my office toll free district wide at (888) 763-1611 or my Washington, DC office at 202-225-4005.