Published: 12-18-08
Congress Culberson and 25 other Members of Congress sent a letter to President Bush urging him not to use tax payers’ funds to bail out the Big Three Detroit Automakers. The letter stated the Members’ concerns that “a federal bailout of the automobile industry…would put taxpayer money at risk shield the companies from making the reforms necessary to restore competitiveness again and set a costly precedent that the federal government will bailout other failing companies and industries.”
“I remain unconvinced that providing a bridge loan at taxpayer expense will effectively fix the deep-seated problems facing the auto industry” Congressman Culberson said. “I urge President Bush to support mandating a Chapter 11 reorganization for the Big Three which would prompt a reshuffle in management and a complete restructuring of current operations.”
The letter reiterates that the Emergency Economic Stability Act allocated $700 billion to provide stability to the nation’s lending system by supplying leverage to “financial institutions” not favored private businesses.
The Treasury released the 2008 Financial Report of the U.S. Government yesterday as well revealing that our budget is in dire straits. According to the report “using accrual accounting (the method used by American businesses and states) the nation’s annual deficit exceeded $1 trillion this year. That would be 7 of GDP.”
Coinciding with the report the U.S. Comptroller stated that “the current recession could significantly affect the federal government’s future tax revenues and the value of certain of its assets and liabilities such as loans and loan guarantees. The ultimate effect of the recent unprecedented actions and the recession on the federal government’s financial condition are not yet known.”
As a member of the Appropriations Committee and a fiscal conservative Congressman Culberson makes balancing the budget a top priority. He co-authored the Balanced Budget Constitutional Amendment which would amend the Constitution and require Congress to pass a budget that balances projected expenditures with incoming revenue.
“We have to stop spending money and stop bailing out failed private companies with debt our children and grandchildren will have to repay” Congressman Culberson has said. “I hope President Bush will consider the concerns set forth in our letter before increasing America’s alarming unfunded liability.
Following the letter the American Conservative Union released the following statement: The American people do not want their tax money spent on failing businesses who were failing long before our nation entered economic uncertainty. We join these Members of Congress in hoping these American companies can survive and eventually thrive. However a taxpayer funded bailout is not the answer.”
