September 30, 2008
An Open Letter to the People of the Ninth District on
the Financial Bailout Proposal -
Dear Friends:
On September 29, 2008, H.R. 3997, the “Emergency Economic Stabilization Act of 2008” failed to pass the House of Representatives by a vote of 205 Yeas to 228 Nays. I joined a majority of my Republican colleagues in voting against this bill.
As you know, our economy is struggling amid record levels of home mortgage foreclosures, increased market volatility, and skyrocketing oil prices. I certainly share your concern about the state of our economy and for its future. I also have concern that over-involvement of the Federal government in free market enterprise can often-times yield negative, unintended consequences.
Over the past few years, there have been significant fluctuations in the housing market. While the market was up, interest rates remained low and most Americans had relatively easy access to credit. Unfortunately, these conditions led to risky decisions among lenders and borrowers, and when the economy started to slow, mortgage-holders began to default on their loans. This downturn in the housing market has affected other sectors of our economy as well. Many home loans packaged together into mortgage-backed securities were sold to investment banks. When mortgage-backed securities began to sour, investment banks such as Bear Stearns were unable to sell these assets. As a result of widespread defaults, banks began restricting lending.
In an attempt to alleviate the credit freeze, U.S. Treasury Secretary Paulson and Federal Reserve Chairman Bernanke came to Congress with an economic rescue proposal. The specific details of the rescue package have changed substantially since the original plan. After negotiation that continued throughout the weekend, the House of Representatives considered a compromise proposal which contains protections lessening the risk to taxpayer dollars.
H.R. 3997 “the Emergency Economic Stabilization Act of 2008” (EESA) provides up to $700 billion for the Secretary of the Treasury to be able to buy mortgages and other assets which have made it difficult for businesses to access credit. However, rather than giving the Treasury all the funds at once, the legislation gives the Secretary of the Treasury access to $250 billion immediately, then requires the President to certify that additional funds are needed ($100 billion, then $350 billion subject to Congressional disapproval). The Secretary of the Treasury must report on the use of the funds and the progress in addressing the crisis. EESA also establishes an insurance guarantee program that in lieu of purchasing assets with taxpayer funds is available to insure assets, thus lessening the cost to the taxpayer. Furthermore, EESA creates an Oversight Board so that the Treasury cannot act in an arbitrary manner and a special inspector general to protect against waste, fraud and abuse.
From the beginning, I have had great concern over allowing $700 billion of taxpayer dollars to be put on the line for this rescue proposal. I was encouraged to see improvements to the proposal that House Republicans were able to achieve during negotiations such as the insurance guarantee program. However, many provisions of the plan remain cause for concern in my view; we are still authorizing $700 billion of taxpayer money to be put on the line. No matter how many positive provisions have been added, there is no certainty the plan will actually achieve the goal of stabilizing the economy. I believe that it is a dangerous trend to have the U.S. Government taking over shares of companies. I also have concerns that foreign banks and companies are eligible for the bailout so long as they have “significant operations in the United States.”
Under normal circumstances, I do not believe the Federal government should regulate private companies’ ability to compensate their executives. However, given the fact these companies are seeking an economic bailout from the Federal government, I believe it is appropriate that any package should have strict requirements whereby executives of failed companies should not be rewarded with excessive severance packages. I remain skeptical the final version of this package effectively does so. Under the proposal, power to limit executive compensation is given to the Secretary of the Treasury. Thus, there is not a stated cap. The only other provisions in the legislation are a 20% excise tax on golden parachute payments triggered by events other than retirement and tax deduction limits for compensation limits above $500,000. Furthermore, if a company elects to choose the insurance provision, there are no restrictions on executive compensation.
Additionally, I am troubled that this rescue plan does not take steps to reform some of the failures of government institutions such as, Fannie Mae and Freddie Mac. This could include reforms such as limiting the Federal backing for high risk loans and transitioning Fannie and Freddie over a reasonable time period to truly private companies without special government privileges. Opening them up to real market competition would establish commonsense limits for their capital requirements and portfolio holdings.
I continue to believe that further consideration should have been given to other options such as market stimulating tax cuts, changes to mark-to-market valuation rules and taking real steps to solve the ongoing energy crisis our nation faces by increasing our domestic energy capacity. Even if this rescue package is successful, we will continue to face this energy crisis and continue to operate under an energy policy which does not allow us to employ an all-of-the-above approach to meet our energy needs. Doing so would have tremendous positive impacts on our economy. I have always had reservations about government involvement in the private sector. While I recognize the seriousness of the economic situation we find ourselves in, I remain unconvinced there are not better ways to deal with this crisis.
Because of these concerns discussed above, I could not support the “Emergency Economic Stabilization Act”. At the time of this letter being written, it is uncertain how Congress will proceed. It is my hope that Speaker Pelosi will now allow consideration of a bill which addresses the concerns of a majority of the American people.
Thank you for sharing your views with me on this issue. I take very seriously my responsibility to reflect the voice of my constituents, and it was abundantly clear that a majority of the people of the Ninth District of Georgia felt the same way as I did.
Respectfully,
Nathan Deal
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Dear Friends,
Like many of you, I thought Congress should have stayed in session until we could have a vote on whether to allow Americans to enhance our own energy capacity through environmentally sound drilling and exploration of our own natural resources. For that reason, I voted against adjourning for recess. I was unfortunately in the minority on that vote.
Since that time, my Republican colleagues have been speaking out on the floor of the House of Representatives in protest of Speaker Pelosi’s decision to adjourn without even allowing a vote on the issue. Ms. Pelosi has turned off the lights and microphones, as well as shut down the cameras. However, Republicans continue to speak out on in the Chamber of the House of Representatives.
I recently concluded my annual Town Hall Meetings in the 15 counties of the Ninth Congressional District of Georgia. I soon realized, like myself, my constituents felt that gas prices and the overall energy situation are of grave concern for our nation right now. As such, I felt it was important to go back to Washington and join my Republican colleagues on the floor of the House to continue to press the energy issue.
On the House floor, I discussed many of the same issues surrounding the energy debate which I talked about at the Town Hall Meetings. Except here, there were Americans from all across the nation on the floor of the House listening to my colleagues and I discuss the need for an “All-of-the-Above” energy proposal.
Whether it has been on the House floor with these concerned citizens or the constituents at my Town Hall Meetings, there has been a great response on behalf of the American People to support an “All-of-the-Above” balanced energy approach and those who want their voice heard rather than silenced by one individual.
Speaker Pelosi has imposed on her Democratic colleagues an isolationist position and I believe that a growing consensus among the American people will eventually make that extremist position unsustainable.
The House of Representatives is the “People’s House” and as such, the people should have a say in this House. This is why as representatives of the people, my Republican colleagues and I will continue to fight until we get a straight up or down vote on a truly balanced approach which allows us to become energy independent.
Dear Friends,
I would like to share with you my July 2008 E-Newsletter, which contains information regarding my upcoming Town Hall Meetings in all fifteen Counties of the Ninth District. These meetings always prove informative to me, as they give me a chance to hear directly from you. In addition to hearing your concerns, I will share my perspective with you on legislative issues which we currently face in Washington and how certain issues affect you and your family, both as Americans and residents of Georgia’s Ninth Congressional District. Please find below a schedule of my upcoming Town Hall Meetings. I look forward to seeing you.
Respectfully,
Nathan
MONDAY – AUGUST 4, 2008
GORDON COUNTY
8:30 – 10:00 AM – GORDON CHAMBER OF COMMERCE
DADE COUNTY
1:00-2:30 PM – DADE COUNTY ADMINISTRATION BUILDING
CATOOSA COUNTY
3:00-4:30 PM – THE COLONNADE
WALKER COUNTY
5:30-7:00 PM – BANK OF LAFAYETTE, COMMUNITY ROOM
TUESDAY, AUGUST 5, 2008
WHITFIELD COUNTY
9:00-10:30 AM – NORTHWEST GA TRADE CENTER
MURRAY COUNTY
11:30 AM – 1:00 PM – MURRAY COUNTY SENIOR CENTER
GILMER COUNTY
3:00 – 4:30 PM – GILMER COUNTY BANK
FANNIN COUNTY
5:30 – 7:00 PM – FANNIN COUNTY COURTHOUSE
WEDNESDAY, AUGUST 6, 2008
UNION COUNTY
9:00-10:30 AM – NORTH GA TECHNICAL SCHOOL
LUMPKIN COUNTY
11:30 AM – 1:00 PM – LUMPKIN COUNTY COMMUNITY CENTER
PICKENS COUNTY
3:00 – 4:30 PM – APPALACHIAN TECHNICAL COLLEGE
THURSDAY, AUGUST 7, 2008
DAWSON COUNTY
9:00 – 10:30 AM – APPALACHIAN COMMUNITY BANK
FORSYTH COUNTY
11:30 AM – 1:00 PM – FORSYTH COUNTY ADMINISTRATION BUILDING
WHITE COUNTY
3:00 – 4:30 PM – UNITED COMMUNITY BANK
HALL COUNTY
5:30 – 7:00 PM – GEORGIA MOUNTAINS CENTER THEATRE
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Dear Friends,
I would like to share with you my June 2008 E-Newsletter, which contains legislative information from that particular month. It is because of your emails and phone calls that I will continue this monthly correspondence and provide insight on what is occurring in Congress. As always, should you have additional concerns please feel free to contact me.
Respectfully,
Nathan
Energy: A Balanced Approach
Democrats recently brought a bill to the House Floor for consideration that directs the Commodity Futures Trading Commission (CFTC) to utilize its authority, to curb the role of excessive oil speculation. I supported this measure, because it basically directs the CFTC to do its job. However, I believe we must do more than simply tell the CFTC to do its job. That is why I have cosponsored H.R. 6130, the “Protecting Consumers from Energy Speculators” which is part of the Republican’s American-Made Energy package. H.R. 6130 would require the Federal Trade Commission, in conjunction with the Energy Information Agency and the Federal Reserve, to study the effects of speculation in both the foreign and domestic energy futures markets to determine whether there are any anti-competitive effects on our retail markets and it directs the CFTC to begin writing rules to make sure that the requirements and limitations the United States imposes on speculators trading on U.S. futures markets are also applied when the speculators trade U.S. energy futures contracts on a foreign-regulated market.
Every time I visit the gas station, I am reminded of the energy challenge we face as Americans. This challenge is real and requires real, practical solutions. I have and remain committed to make these tough decisions.
I believe we must promptly move towards a balanced energy approach that makes use of both alternative energy and the resources within our own borders. There is no magic bullet that can single-handedly solve our nation’s energy challenge over night. However, there are real steps we can take towards becoming less dependent on foreign oil.
As you may know, I recently took part in the introduction of a package of 15 pieces of energy legislation which will increase the supply of American-Made Energy. This package addresses every portion of the energy sector, and is focused on a balanced energy plan that provides real energy solutions to Americans without hurting American jobs or the American economy.
Alternative fuels and methods such as wind, solar and sensible bio-fuels should be part of a long-term solution. However, I remain committed to the belief that a responsible and truly balanced energy plan should not rely solely on the promise of technologies which are not yet commercially viable, nor should it jeopardize our nation's economy.
A balanced approach would make use of a variety of solutions, many of which could be set in motion tomorrow, were it not for their blockage by foolish energy policies. This includes allowing environmentally sound exploration of the Outer Continental Shelf (OCS) rather than sitting back and watching Cuba do it for us. This also includes allowing for environmentally sound oil exploration in the Alaska National Wildlife Refuge (ANWR) which would be limited to just 0.01% of ANWR’s total acreage.
I believe it is important to realize that any serious discussion about the future of clean alternative energy must incorporate nuclear energy production. Those who demonize nuclear power and use fear to prevent it from even being considered need only look to countries like France who produce over 80 percent of their energy from nuclear and have been doing so safely for over 25 years. That is why the Republican’s American-Made Energy package includes H.R. 6132, which enhances our nation’s nuclear energy capacity by allowing the Department of Energy to recycle “spent” nuclear fuel rods as is currently being done in Europe. The uranium in these fuel rods can be reprocessed for more nuclear energy production, thus significantly reducing the amount of unusable nuclear waste.
Now the Majority Party continues to ignore these real solutions and dismiss a balanced energy approach. It is time that Congress stop playing politics with the current energy crisis and start providing immediate assistance for American families. I will continue to work with my Republican colleagues to push Speaker Pelosi to consider a balanced energy approach that can provide real solutions.
For more information on the Republican’s American-Made Energy Package, please follow the link below to my website. http://www.house.gov/deal/press/AmericanEnergy.shtml
Funding for Iraq and Afghanistan, Bolstered G.I. Benefits Becomes Law
As you may know, in late June, House and Senate Leadership were successful in resolving differences on H.R. 2642, the “Iraq and Afghanistan Supplemental Appropriations Act.” This critical piece of legislation, which provides $186 billion in Department of Defense funding for the remainder of FY08 and FY09, expanded G.I. benefits, and a 13-week extension of unemployment insurance benefits, was strategically crafted to give lawmakers the opportunity to support or oppose war funding and domestic spending items separately. To this end, on June 19, 2008, the House passed war funding and domestic spending items through two separate amendment votes, which were ultimately agreed to by the Senate and signed by the Administration on June 26, 2008.
Under the current funding system for our efforts in Iraq and Afghanistan, all funding was scheduled to cease on July 1, 2008, resulting in thousands of civilian employee layoffs and furlough notices being sent to our men and women in uniform. Clearly, this emergency measure is critical to maintain our obligation to support our men and women in uniform.
The amendment containing troop funding provided $165 billion for Department of Defense funding for maintaining operations in the War on Terror without imposing artificial timelines for troop withdrawal. I am certainly pleased to see this change from previously considered versions of the Bill as it provides our troops with the resources they need without hamstringing our commanders in the field through politically-motivated war restrictions.
Additionally, the amendment which contained domestic spending items represented a much-improved version over previous ones, providing much-needed expansion of G.I. benefits, emergency disaster funding for recovery from mid-West flooding, and a uniform 13-week extension of unemployment benefits to address concerns with increased rates of unemployment throughout the nation.
I joined a majority of my Colleagues on both sides of the aisle in supporting this compromise as it represents a satisfactory balance between providing necessary funding for our troops while conservatively addressing domestic concerns which have developed in recent months.
Alternative Minimum Tax
As you may know, the Alternative Minimum Tax (AMT) was enacted in 1969 to ensure a select group of the nation’s wealthiest individuals and families did not utilize the tax code to unfairly avoid paying income taxes. When passed into law, the AMT affected fewer than 20,000 taxpayers, but failure to index the AMT to inflation rates has exposed roughly 4.2 million taxpayers to this unfair tax burden. Since 1998, Congress has passed a series of short-term “fixes” to the technical AMT problem, permitting certain tax credits to offset AMT liability as well as short-term increases in the basic income exemption level to avoid negatively affecting unintended middle-class families. H.R. 6275, the “Alternative Minimum Tax Relief Act of 2008,” would increase exemption levels from $33,750 to $46,200 for individuals and from $45,000 to $69,950 for couples filing returns in 2008.
While I certainly support “fixing” the AMT to avoid exposing many families for which this tax was never intended, I have serious concern with any increase in other taxes to offset the cost of patching AMT. H.R. 6275 includes several tax increases which, in a time of economic uncertainty and record-breaking gas prices, would be ill-advised and dangerous to the long-term viability of our nations’ financial and energy sectors. Specifically, the bill would establish new rules pertaining to “carried interest,” the amount of compensation paid to fund managers for well-performing and profitable securities. Under current law, these revenues are taxed at the capital gains rate, as they represent the value generated off of the purchase and sale of assets. H.R. 6275 seeks to increase the 15% capital gains rate to 35%, treating carried interest as ordinary income for tax purposes. The Joint Committee on Taxation estimates this provision alone would raise taxes by $31 billion over the next 10 years.
House Ways and Means Chairman Charles Rangel (D-NY) brought H.R. 6275 to the floor under a Closed Rule, a very restrictive procedure which eliminates the opportunity to incorporate amendments in the underlying legislation. The bill was passed by the House, despite strong opposition, by a vote of 233 – 189 and currently awaits Senate action. I joined a number of my Colleagues in opposing the unacceptable “pay-for” provisions and will continue to compel House Leadership to bring a clean AMT “patch”, with no tax increases, similar to the bill which became law last year.
FY2009 Budget Resolution Passes House
On June 5, 2008, the House considered and passed S.Con.Res. 70, the Budget Resolution for Fiscal Year 2009. I joined a large number of my Colleagues on both sides of the aisle in opposing this measure which represents the largest tax increase in U.S. history. By increasing marginal tax rates, eliminating the 10% income tax bracket for lower-income taxpayers, raising taxes on marriage, children, small businesses, and estates, and resulting in higher tax rates on investments, Democratic Leadership seeks to pay for a bloated budget by imposing $683 billion in additional taxes over the next five years.
This budget resolution assumes the expiration of the 2001 and 2003 tax cuts which have provided much-needed relief to families and small businesses across the country already feeling pressure from stagnant economic conditions. Not only should these tax provisions be made permanent, which have proven to economically benefit our country, Congress must make every effort to put hard-earned taxpayer earnings back into the pockets of struggling middle-class families. Instead of feeding Washington with billions in additional revenue to fund inefficient and wasteful federal programs, we should reorient our efforts to cut spending and reduce taxes. Despite my strong opposition to this misguided budget resolution, it passed the House on June 5, 2008 by a narrow margin vote of 214- 210.
Medicare
This month, the House passed a major piece of legislation impacting many aspects of the Medicare program. The most significant component of the bill was a payment update for physicians who provide services in Medicare. Physician reimbursement in Medicare is influenced by the Sustainable Growth Rate (SGR) formula which dictated a 10% reduction in physician payment effect July 1, 2008. The bill provided a 0.5 percent update to the Medicare physician reimbursement rate from July 1, 2008 through December 31, 2008, and a 1.1 percent update for 2009. However, physicians will be facing a 20 percent cut in 2010. While this kind of temporary fix is not ideal, I am afraid if the projected cut occurred, it would have a devastating impact on physician participation in the Medicare program and would severely undervalue the service physicians provide to Medicare beneficiaries. It is disappointing that the Congress continually relies on these temporary fixes to a very serious problem in the Medicare program. Already, some Medicare beneficiaries are having difficulty finding physicians who accept new Medicare patients and a payment reduction would further compound this problem. As the Ranking Member for the Subcommittee on Health, I look forward to continuing to work on the issue of SGR reform during the 110th Congress to design a suitable solution to reform the system.
Unfortunately, the Senate failed to act on the bill prior to leaving for the Independence Day recess. I expect that when the Senators return, they will work quickly to avert the cut to physician services and will adopt many of the provisions contained in H.R. 6331, if not the very same provisions. The Centers for Medicare and Medicaid Services has decided to place a temporary hold on payment of claims for services performed in July in an effort to minimize any disruptions caused by the failure of the Senate to act on the issue of physician payment.
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May 2008 E-Newsletter
Dear Friends,I would like to share with you my May 2008 E-Newsletter. This is my 5th publication since the initial issue in January 2008, kicking of the New Year with new ways to reach out to the Ninth District of Georgia. It is because of your emails and phone calls that I will continue this monthly correspondence and provide insight on what is occurring in Congress. As always, should you have additional concerns please feel free to contact me.
Respectfully,
Nathan
Republicans Unveil American-Made Energy Package
I believe the U.S. must promptly take steps to provide Americans with an adequate energy supply from resources within our own borders. There is no magic bullet that can single-handedly solve the energy challenges our nation faces in the foreseeable future. However, there are real steps we can take towards becoming less dependent on foreign sources of oil through a variety of solutions.
As a member of the House Committee on Energy & Commerce, I recently took part in the introduction of a package of 15 pieces of energy legislation which will increase the supply of American-Made Energy. These bills address every portion of the energy sector, and are focused on providing real energy solutions to Americans without hurting American jobs or the American economy.
Alternative fuels and methods should be part of a long term solution to the energy challenges we face. However, I remain committed to the belief that a responsible energy plan should not rely solely on the promise of technologies which are not yet commercially viable, nor should it jeopardize our nation's economy.
This legislative package demonstrates the actions we can take today to address our nation’s energy challenges by increasing access and use of American-Made Energy.
American-Made Energy means utilizing the over 10.4 billion barrels of recoverable oil in the Arctic National Wildlife Refuge that the Department of the Interior says is our nation’s best single opportunity to increase significantly domestic oil production over the next 40 years. In my time in Congress, I have voted over 13 times in favor of increasing our domestic energy supply through environmentally sound exploration of ANWR.
American-Made Energy means taking action to allow environmentally sound exploration of the Outer Continental Shelf (OCS) rather than ignoring the fact that Cuba has leased drilling rights to China to explore oil and gas production just 50 miles off the coast of Key West, Florida. I do not believe it wise for the United States to sit by and watch the Chinese come right up against U.S. waters and slant drill into the Florida pool, draining out what is technically the crude oil of the United States.
American-Made Energy means ensuring that government subsidized corn-based ethanol does not drive up feed and food prices for American consumers.
American-Made Energy means enhancing our nation’s nuclear energy capacity by allowing the Department of Energy to recycle “spent” nuclear fuel rods as is currently being done in Europe. The uranium in these fuel rods can be reprocessed for more nuclear energy production, thus significantly reducing the amount of unusable nuclear waste.
American-Made Energy means streamlining the permitting processing for the construction of fuel refineries. A key barrier to new plant development, including coal-to-liquid and biofuel energy projects, is the complexity of permitting and as a result, no new refineries have been built in the past 30 years.
Collectively, these pieces of legislation are a real energy plan that would lower our dependency on foreign oil as well as lower prices at the pump for Americans without harming our economy.
Many of these initiatives, including streamlining refinery permitting and the opening of ANWAR and the OCS, have been passed by Republican Congresses in the past, only to be blocked by Democrats.
Now in the majority, the Democratic leadership continues to ignore these real solutions. It is time that Congress stop playing politics with the current energy crisis and start seeking immediate assistance for American families. I look forward to working with my Republican colleagues to push Speaker Pelosi to allow their consideration on the House floor.
Below is a complete list of the bills that make up the American-Made Energy package.
(Click on links for the bill texts and summaries.)Health Information Technology (HIT)
This month I worked with my colleagues on the Energy and Commerce Committee to introduce a proposal to encourage the adoption of Health Information Technology (HIT). Expanding the use of information technology in health care holds the potential to save lives as well as money. HIT was a top priority for me last Congress and I am glad the committee is moving forward on this issue in a bipartisan way this year. The creation of an electronic system to track medical records will sharply reduce the number of medical errors and help eliminate inefficiencies and waste in the system. Electronic health information systems hold the potential to significantly improve health care by eliminating illegible handwritten prescriptions, providing immediate access to laboratory test results and making a patient's full medical history available to their treating physician no matter where that patient seeks treatment. The proposal we released also included important safeguards to provide patients with the assurance that their personal medical records will remain private and will not be subject to inappropriate disclosures. Many health care providers have already added electronic systems to their practice and hopefully this proposal will encourage full HIT adoption across our health care system.
Farm Bill
As you may know, Congress recently voted on and passed an override of President Bush’s veto of H.R. 2419, the “Food and Energy Security Act of 2007,” more commonly referred to as the “Farm Bill,” without my support. While I certainly recognize the importance of the Farm Bill as a safety net for small farmers, the 2007 Farm Bill package goes far beyond supporting those to whom tax dollars should be directed. First, program benefits (direct payments, counter-cyclical and marketing loan programs) remain available to farmers as long as the previous three-year average of non-farm Adjusted Gross Income (AGI) remains below $500,000. Second, farmers with a three-year average AGI may earn up to $750,000 before becoming ineligible for direct payment benefits under the bill. Even so, counter-cyclical and marketing loan benefits remain in tact for these high income farmers. Finally, a farmer’s AGI may also rise to $1.25 million, so long as the aforementioned farm and non-farm caps are not violated, and still remain eligible for farm support programs, all at a cost which is therefore shifted to American taxpayers. This bill could continue to pay federal subsidies to farmers who do not harvest a crop. At a time of heightened concern with regard to food prices and global food supply, I have serious reservations with the Congress encouraging farmers not to maximize production through benefits paid for by the American taxpayer. It is my belief that commodity support is best allocated to smaller-scale farming operations with limited revenues, not by funneling scarce federal resources to well-capitalized corporate agribusiness interests.
Additionally, the 2007 Farm Bill Conference Report includes dramatic increases to Nutritional Programs, representing $10.4 billion in added funding over the next 10 years. To pay for expanded food stamp benefits, increased funding for food pantries, food assistance programs and school lunch programs, this Farm Bill cuts crop insurance by $5.75 billion and agricultural research by $1.2 billion. Clearly, instead of enacting a Farm Bill which benefits farmers and agribusiness in North Georgia, this legislation cuts farm support funding in lieu of bolstered food stamp benefits and various food assistance programs for eligible low-income citizens. In addition, this Farm Bill continues to subsidize the production of Ethanol while jeopardizing the solvency of the poultry industry, which represents Georgia’s largest agricultural commodity throughout the entire state.
I also have concern with the establishment of a permanent disaster relief program as prescribed by this bill. Statistics clearly indicate that nearly half of those who received federal disaster aid in 2007 went to a limited number of states with drought-prone conditions. During this period, 45% of disaster funding authorized by Congress was distributed to farmers in Kansas, North Dakota, South Dakota, and Texas. Again, although I recognize the need for a farming ‘safety net’ during unforeseen circumstances, a permanent disaster program will only encourage financially-dependent farmers to sustain their reliance on the federal government, and in turn, the taxpayer.
As you may know, on May 14, 2008, the House passed the Farm Bill Conference Report by a vote of 318-106 and the Senate followed suit with passage shortly thereafter. The President subsequently vetoed the bill, forcing the Farm Bill Conference Report to be returned to Congress for consideration of a veto override, which requires two-thirds majority approval in both Chambers for passage. Despite my continued opposition to the bill, the House managed to pass a veto override by a vote of 318-106 on May 21, 2008. The Senate took a similar course of action, voting 82-13 to override the Administration’s veto, one day later.
Funding for Iraq and Afghanistan
On May 15th, the House considered H.R. 2642, the “Supplemental Appropriations Act of 2008,” which would provide $249 billion in additional funding for ongoing efforts in Iraq and Afghanistan, war policy provisions, and domestic spending items. Recognizing that most Members have reservations with specific components contained within this legislation, votes were taken individually on each of three amendments to the underlying Senate Bill which served as its legislative vehicle for passage.
First, Members voted on Amendment #1 which provides $186.3 billion for FY2008 and FY2009 for continued operations in Iraq and Afghanistan. Secondly, the House voted and passed Amendment #2 which contains a number of controversial Iraq policy provisions, including issues stemming from suspect interrogation by U.S. intelligence officials, reiteration of previously-passed law which prohibits installation of permanent base facilities in Iraq, and sets forth artificial time tables for troop withdrawal. Finally, the House voted and passed Amendment #3 which provides increased support for domestic spending items, including extension of unemployment insurance and expanded G.I. benefits. While I am certainly pleased to see inclusion of bolstered G.I. funding, I have serious concern with expansion of unemployment benefits and its resulting cost on taxpayers. Under this legislation, unemployment insurance benefits would be extended 13 weeks for all states, and an additional 13 weeks for states with an unemployment rate which exceeds six percent. Currently, according to Georgia Department of Labor statistics, the state of Georgia unemployment rate of 5.0% would disqualify all residents of Georgia from receiving the additional 13 week extension beyond the baseline increase set forth by the bill. With a national unemployment rate of 4.8%, this amendment seeks to benefit a targeted set of eligible beneficiaries while unfairly taxing those not equally qualified for benefits. Instead of holding our nation’s veterans subject to controversial domestic spending priorities, Democratic Leadership must bring a clean G.I. Bill to the floor, one which both sides of the aisle and the President can agree upon.
Procedural rules set forth during floor debate also contained a self-enacting provision, which did not allow Members a vote on final passage of the overall Bill. For these reasons, I joined a number of my Colleagues in voting ‘present’ on the first Amendment, demanding that the House be given an opportunity to vote on a clean supplemental package for our troops, not a bill laden with domestic spending projects. Amendment #1 consequently failed by a vote 141 – 149 with 132 Members voting ‘present.’ The Second and Third Amendments both passed, despite my opposition, by votes of 227 – 196 and 256 – 166, respectively. As the House and Senate reconcile differences in Conference, I look forward to supporting our troops and working to eliminate wasteful domestic spending initiatives.
House Passes Misguided Housing Legislation
In an attempt to provide relief to struggling homeowners facing foreclosure, House Democratic Leadership was successful in their efforts to pass near-sighted legislation, ignoring the unintended consequences of their actions on the 98% of American mortgage-holders who are currently meeting their monthly payments on time. H.R. 5818, the “Neighborhood Stabilization Act of 2008,” and H.R. 3221 the “American Housing Rescue and Foreclosure Prevention Act,” both passed the House in early May.
H.R. 5818 crafted by Rep. Maxine Waters (D-CA) establishes a $15 billion federal program to fund $7.5 billion in loans and $7.5 billion in grants to states and localities to purchase and rehabilitate foreclosed properties. While the stated goal of this legislation aims to ‘stabilize’ housing markets, this legislation will do little to address the underlying problem—an excess in supply of housing and the depreciation of over-inflated home prices. At a cost of $15 billion to hardworking, financially solvent taxpayers, this bill is a costly bailout for lenders and real estate speculators who made risky bets.
Similarly, H.R. 3221 represents another ineffective, costly attempt to rescue a select group of those facing foreclosure. First, this legislation provides $10 billion in additional tax-exempt bond authority to refinance sub-prime loans into fixed-rate mortgages. Additionally, H.R. 3221 increases Federal Housing Administration (FHA) loan limits, as well as establishes increased Government Sponsored Enterprise (GSE) conforming loan limits. These actions directly increase financial exposure, and therefore risk, of the federal government. At a time of economic uncertainty, Congress must remain steadfast in its efforts to reduce the financial risk on American taxpayers.
We also must remain mindful that foreclosures are costly to financial institutions and are clearly an option of ‘last resort.’ Homes under foreclosure are usually sold at prices insufficient to satisfy amounts owed under the preexisting contract, resulting in a net loss to the lender, another home on an already-flooded real estate market, and a family in a desperate hunt for alternative means. These factors, among others, provide an inherent incentive for lenders to engage in mortgage restructuring to help both parties avoid default. Lenders have taken voluntary steps to reduce foreclosure rates, and should continue to do so, without the need to involve the federal government. Borrowers and lenders both benefit through this process, restructuring volatile adjustable-rate loans into stable, fixed-rate mortgages. I will continue to support efforts in Congress to help facilitate private borrower-lender negotiations which allow normal free-market economic factors to operate as they should.
I joined a majority of my Republican Colleagues in opposing these measures as they were brought to the floor for a vote. It is my hope that this Congress will reprioritize its efforts to enact meaningful legislation to provide stability to housing markets. I will be monitoring this issue closely and look forward to representing the interests of the people of North Georgia as Congress continues to evaluate various proposals for mortgage market reform.
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April 2008 E-Newsletter
Dear Friends,
April was a bustling month in Washington! The 96th Annual Cherry Blossom Festival brought over 1 million people to the area including those from the 9th District. Thank you to those who stopped by the Capitol for a visit. Please find my e-newsletter for April 2008 below which gives some insight as to what has been occurring legislatively. Should you have additional concerns, please feel free to contact me.
Respectfully,
Nathan
Energy Prices
I believe that Congress should increase access and use of domestic energy as an immediate first step. I have voted over 13 times in favor of increasing environmentally sound exploration of our domestic energy supply in areas such as the Arctic National Wildlife Refuge (ANWAR) and the Outer Continental Shelf (OCS).
Two years ago, Speaker Pelosi and the Democratic leadership promised the American people they would bring down the rising price of gas with their “Common Sense Plan”, which they have yet to produce. When the Democrats took control of Congress in January, 2007, the price of a barrel of crude oil was $58.31; today it is over $118. When the Democrats took control of Congress in January, 2007, the national average price of regular unleaded gasoline per gallon was $2.33; today that average is $3.42.
Recently, the Democrat chairman of the Committee on Energy and Commerce, Rep. John Dingell, has called for a 50-cent rise in the gas tax. The current federal tax on gasoline is 18.4 cents per gallon and the State of Georgia currently adds an additional tax of 7.5 cents to each gallon of gasoline purchased. If you are familiar with my voting record, you know that I am opposed to any attempt to increase the federal gasoline excise tax. I firmly believe that we can address our nation’s transportation and energy needs through a variety of logical solutions, rather than raising taxes on hard-working American families.
Another important area for increased domestic energy exploration is the OCS. According to the U.S. Department of Interior’s Minerals Management Service, the offshore areas currently banned from development likely contain a mean estimate of 18.92 billion barrels of oil and 85.79 trillion cubic feet of natural gas that are recoverable. Unfortunately, Congress has yet to allow exploration of these valuable offshore gas resources.
This fact is especially disturbing when one recognizes the competitive disadvantage the U.S. faces in regard to Cuba and China. Cuba recently announced that it has negotiated lease agreements with China to explore oil and gas production just 50 miles off the coast of Key West, Florida. I do not believe it wise for the United States to sit by and watch the Chinese drill right up against U.S. waters and slant drill into U.S. oil reserves, draining out what is the crude oil of the United States. It is time for Congress to remove the moratoria on offshore gas production.
Democrats have financially penalized American energy companies for seeking long-term domestic solutions. It is time that congress stop playing politics with the current energy crisis and start seeking immediate assistance for American families.
Food and Drug Safety
As Ranking Member on the Subcommittee on Health within the House Committee on Energy and Commerce, I have also begun working on the issue of food and drug safety. The integrity of the country’s food and drug supply has been questioned by the importation of contaminated Heparin from China and food borne illness outbreaks. We must be doing more to ensure the safety of foods produced in this country and abroad. However, at a time of rising food prices we must balance the goal of safer food with our desire to mitigate rising food prices. We must not do anything which would further increase the price of a bag of groceries. Our Subcommittee has already held one hearing on this issue and I look forward to working with my colleagues on the committee to bolster the FDA’s ability to protect the safety of the foods and drugs American families use on a regular basis.
Food Prices
As you likely know, subsidies of ethanol production have increased feed prices which have translated into drastically increased food prices. The renewable fuels mandate contained in the Democrat’s Energy bill requires the U.S. to produce nine billion gallons of fuel from renewable sources this year and 11 billion gallons next year, with exponential increases through 2022. Corn has been the primary source for biofuels and the mandate has encouraged farmers to focus agriculture production away from food production and toward fuel production. As many North Georgians know, the recent spike in the price of corn, which is a staple in food production and animal feed has contributed to increased food costs.
I recently signed on as a cosponsor to Rep. Flake’s newly introduced bill H.R.5911, which addresses the legislative provisions that have led to this artificial demand for ethanol. Currently, producers of ethanol receive a guaranteed market through the renewable fuels standard, incentives in the form of tax credits, and protection from international competition through prohibitive import tariffs. H.R. 5911 repeals each of these legislative provisions. It is my view that we must be mindful of market factors when considering approaches to increase our domestic energy production and we must be careful that such solutions do not result in unintended consequences that negatively impact our food supply and our economy.
Congressional Healthcare Debate
This month I participated in a debate at Cincinnati Children’s Hospital on health care issues. I joined three of my colleagues on the Republican side and four on the Democrat side to discuss how we can improve health care in America while lowering costs and increasing quality. Our conversation ranged across a number of issues from Medicare and Medicaid to mandating the purchase of health insurance. During our discussion, we agreed on the importance of health information technology and providing incentives to achieve better health outcomes through an improved health care reimbursement system. Of course, we disagreed as well. The Democrats favored mandates and an increased role for the Federal bureaucracy while Republicans advocated that health care decisions should be taken out of the hands of bureaucrats and insurance companies by empowering patients and families to make those decisions in consultation with their doctor. I am sure conversations like this one will be a focal point of the Presidential race in the coming months. I will continue to work to protect the rights of patients and to provide everyone access to high quality, affordable health care.
House Passes International Debt Cancellation Bill
The House recently passed H.R. 2634 would claim to provide for greater responsibility in lending and expanded cancellation of debts owed to the United States and the international financial institutions by low-income countries. Representative Maxine Waters (D-CA) introduced this bill on June 7, 2007 and it was ultimately passed by the House on April 16, 2008 by a vote of 285 – 132.
A richly-blessed nation, I share a bipartisan commitment to assisting those across the globe who have been presented with greater economic hardship and underdeveloped industries. We have a responsibility to respond to their call to assistance, but must do so mindfully of our own circumstances. I have serious concern with H.R. 2634 as it has been introduced because the claim of providing ‘greater responsibility’ in lending is far from accurate. While the goals of the bill are laudable, I am concerned about providing debt relief to countries who are currently able to pay their debt, including many additional countries which would be eligible to receive U.S. debt relief under H.R. 2634. In a time of economic uncertainty here at home, we must reevaluate our priorities to focus on those most in need. In addition to this concern, side effects of this legislation may result in even greater tightening of international lending markets for all nations. H.R. 2634 has been referred to the Senate Committee on Foreign Relations for consideration.
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February 2008 E-Newsletter
Dear Friends,
I want to share with you my February 2008 e-newsletter. It is because of your
correspondence that I am sending this email in order to keep you updated. If you wish to continue receiving updates after this e-newsletter, please click here to sign-up. Should you have additional concerns, please feel free to contact me.
Respectfully,
Nathan
Economic Stimulus Plan is Signed into Law
As you may know, the economic growth package which was signed by the President earlier this month will attempt to inject over $152 billion into the U.S. economy in an effort to curb the impending threat of an economic downturn. Coined as being “timely, targeted, and temporary,” this immediate boost in available cash aims to stimulate consumer demand for goods and services, thus increasing the demand for domestic labor. Several provisions were contained in the final package in an attempt to achieve this effect, including rebate checks, business tax incentives to make capital investment more appealing this year, as well as an increase in the maximum amount for Federal Housing Administration (FHA) loans. A provision which provides benefits for qualifying Social Security beneficiaries and Veterans was not included in the original House-passed measure, but was ultimately included in the final Senate Amendment. I was pleased to see this change.
I certainly agree that money should be put back into the hands of hardworking Americans, but I feel that other measures should be considered for a permanent fix. As evidenced by the Bush tax cuts of 2001 and 2003, decreasing the tax burden on the American people can have a profound affect on the U.S. economy. I was disappointed that these cuts were not made permanent by H.R. 5140, a move which would have a lasting positive impact on families and businesses across the nation. Additionally, I am concerned about the addition of $170 billion in deficit spending with no guarantee that this stimulus plan will achieve the anticipated result of curbing an economic downturn. If this strategy should fail, we may find ourselves in a more precarious situation than we are currently experiencing. For these reasons, I joined the Georgia Republican Delegation in opposing this measure as it was ultimately considered in the House. Despite my opposition, this legislation passed the House and was subsequently signed into law on February 13, 2008.
“Protect America Act” Allowed to Expire
The aim of the National Security Agency’s domestic surveillance program is to detect, warn and prevent terrorist attacks. The 1978 Foreign Intelligence Surveillance Act (FISA), which addresses electronic foreign surveillance, requires review by federal judges before conducting warrantless searches. The “Protect America Act”, which passed with bipartisan support in August 2007, modernized FISA to give intelligence professionals tools they need to gather information about our enemies, while protecting American civil liberties. On February 12, 2008, the Senate passed with bipartisan support S.2248, the “FISA Amendments Act of 2007” which extends the “Protect America Act” before its expiration on Feb 16, 2008.
Despite overwhelming pressure from both Republicans and Democrats in the House to consider the Senate passed bill before the expiration of the “Protect America Act”, Democratic House leadership continually stalled and finally refused consideration of the bill. Consequently, on February 14, 2008, I joined my House Republican colleagues in exiting the House chamber in protest of this refusal. House Democrats mistakenly believe our national security is not undermined by allowing the “Protect America Act” to expire, despite respected intelligence officials and experts agreeing that they are dangerously wrong. The Director of National Intelligence, Mike McConnell, told a Senate panel “that half of what we know comes from electronic surveillance, and the outdated Foreign Intelligence Surveillance Act had degraded those intercepts by two-thirds.”
It is my view that if a terrorist calls someone in the United States, we want our intelligence community to have both the tools and the authority they need to listen. I will continue to follow this issue closely and work to urge House Democratic leaders to allow us to vote on the Bipartisan Senate Foreign Surveillance Bill.
Corps of Engineers Instructed to Update Water Control Manuals
As you may know, Secretary of the Army Pete Geren took a positive step forward in early February in resolving our current drought situation, by announcing that work will soon begin on the update to both Apalachicola-Chattahoochee-Flint (ACF) and Alabama-Coosa-Tallapoosa (ACT) water control manuals. I am encouraged to see that this process, which could take as long as three years to successfully complete, is now being actively pursued. This long overdue update represents a fundamental component of getting our current water situation under control and establishing a long-term plan for water resources throughout our area.
Additionally, as you know, I have introduced legislation that would alleviate the current water crisis by allowing states suffering from droughts to be exempt temporarily from the Endangered Species Act, which in Georgia is threatening our low water supply by taking away large amounts of water from north Georgia and sending it downstream to protect mussels and sturgeon in Florida. Specifically, the bill, H.R. 3847 would amend the Endangered Species Act of 1973 to allow a state to be exempt from the Act when the Secretary of the Army or a Governor declares that drought conditions are threatening the health, safety and welfare of residents in a region served by a river basin managed by the federal government. I am proud to have the support of the entire Georgia Delegation as cosponsors of H.R. 3847.
The FY2009 Appropriations Process and the President’s Budget Proposal
The President submitted his 2009 budget proposal to Congress this month which included both policy proposals and appropriation suggestions for consideration. If you are familiar with the Federal budget process, then you know that each year, Congress has the opportunity to consider the budget s
