Pence Opposes Housing Bailout BIll

Press Release

U.S. Congressman Mike Pence gave the following speech on the floor of the U.S. House of Representatives today in opposition to H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act:

"The American housing market is in turmoil and homeowners are anxious. I believe Congress is right to act decisively to cure what ails our housing markets.

"But, with the American Housing Rescue and Foreclosure Prevention Act, the cure may be worse than the disease.

"H.R. 3221 increases the national debt by $800 billion, and it raises taxes on the very entities that we say we are trying to help, putting the money in the pockets of special interests and politically motivated groups.

"In a time of crushing national debt and rising deficits, we're considering a package that would give a blank check to the Administration for bailing out Fannie Mae and Freddie Mac even as the Chairman of the Federal Reserve and regulators of those entities insist they're solvent and fiscally sound.

"The most troubling part to me is that whatever we do for Fannie Mae and Freddie Mac, we shouldn't be raising taxes on them. This legislation includes a tax of 4.2 basis points for each dollar of unpaid principal balance of total new business purchases.

"In plain language, CBO estimates that 4.2 basis points could equal a slush fund of $710 million dollars for 2009, $9 billion dollars over ten years. Those funds could go to organizations like ACORN and the National Council of La Raza, which in addition to being involved in legitimate pro-housing programs, are also unquestionably involved in political mobilization, voter turnout, registration and the like.

"Congress can do better than H.R. 3221 to quell the anxious housing markets that beset our nation today.

"The American people deserve a housing bill without corporate bailouts, without tax increases, without slush funds for politically motivated organizations.

"The American people deserve better than the American Housing Rescue and Foreclosure Prevention Act and I urge my colleagues to join me in opposition to this legislation."

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