Saturday, April 24, 2010

McCarthy: financial regulatory reform bill misses the point and increases spending and limits consumer options


 Rep. Kevin McCarthy (R-Bakersfield) shares his thoughts with his weekly report from Capitol Hill.
 "As I travel back to Bakersfield each week, I am continuously reminded that what our nation needs is to focus on improving our business climate so our entrepreneurs and small business owners can create jobs.   ‪
  Last February, Congress debated a trillion dollar stimulus bill promised to “stabilize our economy and prevent unemployment from rising above 8%.”  The latest unemployment numbers are at double digits.  I believed there was a better approach and helped draft another proposal that focused on providing relief to struggling small businesses.‪‪

  "Then, in June the House passed a cap and trade bill. This legislation is estimated to increase Americans’ energy cost by thousands of dollars annually and cost jobs if it becomes law.  My colleagues and I worked on legislation that focused on an “all of the above approach” to increase all types of energy production ranging from wind, oil, solar, natural gas, hydrogen, geothermal and nuclear.‪

  "Then, last month, a health care bill was pushed through the Congress. Today, the Centers for Medicare and Medicaid Services (CMS) issued their latest analysis of the President’s new health care law.  CMS confirmed that our nation’s health care costs will increase ($311 billion more), rather than decrease, over the next 10 years.  All the while, our first priority should be focused on improving the businessclimate so private sector jobs can be created. ‪

  "This week, the debate in Washington center around a financial regulatory reform bill that raises many serious concerns.‪ First, this bill creates a new government entity that will approve the financial products that consumers can use, limiting credit and investment options for small businesses and families, which ultimately will not create more jobs.  Second, the bill does nothing to address Fannie Mae and Freddie Mac, both government-sponsored entities have cost taxpayers $126.9 billion and no one knows how much more in the near future as their financial stability is on questionable footing. Third, the bill does not allow for the fundamental principle of the free market: freedom to fail and innovate. ‪

  "The overarching problem is that we cannot afford these programs.  Many of you probably heard of the idea floated of imposing a “value added tax” (VAT).  A VAT would essentially be a national sales tax that would be collected by retailers on top of what state and cities already collect. I am very suspicious of this tax especially if it were coupled with our current income tax.‪ Ideas like the VAT, cap and trade, oil severance taxes, or additional health care taxes misses the broader point: we need more private sector jobs and we cannot continue to spend and borrow money we do not have.  We need to cut spending and improve our business climate in order to move toward a path of prosperity.  California continues to suffer from double-digit unemployment and Kern County is at 18.3% and I believe that proposing additional taxes and regulations are not the path to prosperity.

  "I was glad to see in DC this week Bonnie Kaufman and her husband George.  Bonnie is the Assistant Principal at James Monroe Middle School (Ridgecrest) and is also the National Association of Secondary School Principal’s California Assistant Principal of the Year.  Today,

  "I visited Liberty High School and spoke to two civics classes and this weekend, I will in attendance to help celebrate their 100 years of education"

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