Taxpayers are getting less back than promised from economic bailout, with inadequate transparency with the program

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From: TCS- Taxpayers for Common Sense

Stressed Out by the Bailout

Volume XIV No. 22: May 29, 2009
Picture: Former CEOs of Fannie Mae and Freddie Mac before Congress.


Cha-Ching! That’s the sound you’ve heard over the last several months as about 600 companies walked away from the federal cash register, their pockets stuffed with wads of cash. We’ve never been too thrilled with how the economic bailout has been implemented, but now, eight months in, more problems are emerging. Taxpayers are getting less back than promised, transparency has barely increased and the program seems to be turning into a revolving loan fund without Congressional scrutiny.

Since the Troubled Asset Relief Program (TARP) was created in the fall, about $600 billion has been committed to supporting the financial sector, leaving about $100 billion to go. Throw in the money promised to Fannie Mae and Freddie Mac and the price tag hits $1.1 trillion. And we’re not even counting the Fed’s commitment to shore up financial institutions.

Most of the TARP money is going to banks through the Capital Purchase Program (CPP), under which banks receive money in exchange for preferred stock, theoretically enabling them to maintain or increase lending.

As more and more eyes scrutinize the way the bailout dollars are being used, many concerns arise. First, the Congressional Budget Office estimated that Treasury paid $356 billion more to banks than the value of assets received in exchange – a 51% subsidy rate.

Treasury recently completed a series of “stress tests” on 19 of the country’s largest banks to determine whether TARP was indeed helping them avoiding shutting down. While Treasury’s view of the test results was optimistic, the banks could lose $599 billion by the end of 2010 under the worst case scenario. Also, Treasury is requiring 10 of the banks to raise billions in additional capital to shore up their balance sheets. But by requiring banks to bolster their capital cushions, some banks may reduce lending – the opposite of the Bailout’s goal. And for those banks unable to meet the capital goals, Uncle Sam may become their owner.

Other banks are considering getting out of the TARP game altogether, and some have already bought back their stock and warrants. Initially the public was led to believe that we might actually profit from TARP investments after the economic dust settled. But it looks like Treasury is content with taxpayers swallowing all of that $356 billion overpayment. Warrants that were part of most of the TARP deals represent the Treasury’s potential for profit. A warrant holder has the right to purchase a company’s stock, and can thus profit in the future if that stock is sold at a higher price. In one recent example Old National Bancorp bought back all of its preferred stock from Treasury and negotiated a $1.2 million buyback of its warrants. But a separate analysis put the potential value of those warrants at $6.9 million.

We agree that Treasury shouldn’t be in the business of playing the stock market. But allowing other private investors to bid on the warrants would result in a fairer valuation without increasing risks to taxpayers.

Treasury Secretary Geithner now wants to recycle the returned cash and give it to banks that are not yet participating in the program – TARP II. Sequels are rarely better. We’ve argued for months that one of the biggest problems with the first bailout was the failure of Congress and Treasury to lay out clear, measurable goals. Before recycling the dough, Congress should force Treasury to come back to the table and tell taxpayers just how we are benefitting from the money already doled out and explain TARP’s effectiveness in shoring up the economy. We can’t afford a rerun of the same mistakes.


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Join the April 15 (Wed.) Taxpayer's Tea Party

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From: National Taxpayers Union

A Taxpayer's Tea Party Is Happening Near You!

If you're fed up with the perpetual growth of government taxes, spending, and regulation, you have a great opportunity to make your voice heard this coming Wednesday!

A couple months ago, CNBC reporter Rick Santelli sparked the birth of a nationwide grassroots movement in opposition to government bailouts with his call for a "Chicago Tea Party" protest. Organizations including the National Taxpayers Union and its local allies have run with the idea, and "Tea Parties" have been scheduled in hundreds of locations around the country for this Wednesday, April 15. Angry citizens will be able to unite against reckless federal, state, and local fiscal policies that could ruin this great nation and condemn future generations to poverty.

If you haven't made plans to attend a Tea Party already, please visit the following Web site, www.teapartyday.com/Locations.aspx.

You'll be in the good company of thousands of National Taxpayers Union supporters who are committed to participating in these rallies.

In the National Taxpayers Union's 40-year history, we have rarely seen such an outpouring of spontaneous activity from communities of taxpayers throughout America. If all of us do our best to attend a local Tea Party and encourage others to do the same, we may very well be launching the beginning of a taxpayer revolt that will rival the American Revolution itself!

Please, take an hour or so this coming Wednesday, April 15, to stand up and be counted among millions of modern-day patriots who want to take back the government that once served taxpayers rather than special interests. See you there, and let's raise a ruckus politicians won't be able to ignore!

Sincerely,

Your Grassroots Action Team at NTU

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• The 'Tea Party' goes national (hsh.com)

Subsidyscope.com: Comprehensive data on the financial interventions by the federal government

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From: The PEW Charitable Trusts

Project: The Financial Bailout

In recent months, the federal government has intervened in the nation’s economy in unprecedented ways. Those actions have raised citizens’ awareness about the role of subsidies in the economy and heightened concerns about their size and scope. However, it is hard to find comprehensive data on the financial interventions in a single, easy-to-use Web site.

To fill this gap, Subsidyscope – an initiative of The Pew Charitable Trusts – is pulling together data on the financial institutions that are receiving benefits from the various federal programs so users can understand how and where taxpayer dollars are being spent.


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National Taxpayer Union weekly Internet radio program and social networking

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From: National Taxpayers Union

NTU Launches Weekly Program

At last -- a voice for those who pay big government's bills, not those who create them. NTU has begun a weekly Internet radio program called "Speaking of Taxpayers" on gmmy.com. GMMY (Golden Music Memories of Yesteryear) Radio is an online destination dedicated to providing music and other entertainment from the 30s, 40s, and 50s.

Every Sunday from 3 to 3:30 p.m. Eastern time, NTU's on-air personalities provide news and views of interest to taxpayers -- not just from Washington, DC, but from all 50 states and thousands of cities and towns from across the nation. Sponsored and produced by NTU, "Speaking of Taxpayers" will feature special guest interviews with NTU's policy experts, along with lawmakers, citizen activists, and other figures in the movement for limited government. The show also offers up an "Outrage of the Week" -- a ridiculous example of wasteful government spending modeled after the popular feature in NTU's research arm's award-winning newsletter, Capital Ideas.

In addition to online radio, NTU & NTUF are online whenever you connect to the Internet. We have RSS feeds for our home page, ntu.org, and for our blog, governmentbytes.com. You can also follow us on Facebook, Twitter, and YouTube.

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US taxpayers pay for deep illegal political campaigning for Republicans by White House officials

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From: POGO - Project on Government Oversight

[Another symptom of the politicization of the George W Bush administration on official time and taxpayer expense. -David Weller]

White House Puts Agency Officials on the Campaign Trail; Taxpayers Foot the Bill

-- Michael Smallberg
October 17, 2008

In the months leading up to the 2006 congressional elections, the White House organized a staggering number of campaign appearances for cabinet secretaries and other agency officials, often in violation of the Hatch Act and at great cost to the taxpayer, according to a draft report released this week by the House Oversight and Government Reform Committee.

The White House's Office of Political Affairs (OPA) was created during the Reagan administration to, in the words of its first director, "make sure the White House bestows its favors--campaign appearances, endorsements, coordination of grant announcements--in the most effective way possible." Throughout its existence, OPA's operations have repeatedly tested the limits of the Hatch Act, which is supposed to restrict the political activity of executive branch employees and protect taxpayers from having to fund any such activity.

If the general outline of this story might sound familiar (astute blog readers will recall that we released an OSC Task Force document a few months ago that mentioned an investigation into OPA abuses), the Committee's latest report describes in even greater detail the improper use of executive branch resources and taxpayer dollars to assist in political campaigning.

From January 1 to November 7, 2006, during which time the OPA was headed by Sara Taylor, cabinet secretaries appeared at over 300 OPA-proposed events with Republican candidates, the vast majority of which occurred outside of Washington, D.C. Topping the list was Commerce Secretary Gutierrez, who appeared at 59 events:

You might notice that White House "Drug Czar" John Walters appeared at 19 of these events, in blatant violation of a federal law which explicitly states that the Director of the Office of National Drug Control Policy (ONDCP) "may not participate in Federal election campaign activities." At a follow-up meeting, Karl Rove specifically thanked Walters for going "above and beyond the call of duty." When the ONDCP's White House liaison wrote to express his gratitude for Rove's kind words, an OPA official responded: "Yes, you guys were super helpful. We wanted KR to know exactly who our superstars were."

It's also worth noting that the majority of the events that took place outside of Washington, D.C., were deemed to be "official" rather than "political," which meant that taxpayers were forced to foot the bill. The White House often encouraged agencies to use taxpayer funds to pay for events that were unmistakably political in nature: "Needless to say, trying to save the campaign as much $$ as possible."

In a letter obtained by Government Executive, former-GSA-chief-turned-radio-commentator Lurita Doan--who was accused of violating the Hatch Act during her time in office--had some choice words for Committee Chairman Henry Waxman (D-CA) in response to the report: "I note that you have, once again, initiated your unique brand of vicious, partisan politics by releasing a deliberately false report prior to an important election....I now understand you and your ubiquitous hypocrisy. I know how your witch hunts and kangaroo courts work. So please, invite me to testify. I can't wait." If it's anything like her last appearance before the Committee, we can't wait either.

To be sure, Republicans aren't the only ones to blame for OPA abuses. During the Clinton administration, the Washington Times and others reported that the OPA was improperly arranging for federal officials to appear at campaign events in support of Clinton's reelection and Democratic congressional campaigns. Rep. Tom Davis (R-VA), the ranking member on the Committee, argued that "the same kind of things [were] done by every administration since Eisenhower." Nevertheless, the Committee's report concludes that the current administration's "deep and systemic reach into the federal agencies [is] unprecedented."

Nearly all of the OPA directors named in the report, including Ken Mehlman, Matt Schlapp, Sara Taylor, and Scott Jennings, have left office, which means they can't be investigated for Hatch Act violations. However, the Committee recommends eliminating the office altogether, or at least reforming it to ensure that taxpayers are no longer footing the bill for blatantly political activities. POGO would also strongly support any measure to do away with the OPA, whose recent abuses have done great damage to the integrity of the executive branch.

[POGO article accepts comments]


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• Tell your congress members to support strong whistleblower rights for government employees

Passed bailout bill includes IRS sharing information with federal agencies

Internal Revenue Service.
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From: Government Bytes

IRS snooping in the bailout bill?

Posted by Kristina Rasmussen - October 04, 2008

What you need to know (thanks to this CNET article by Declan McCullagh):

There's another section of the bailout bill worth noting. It lets the IRS give information from individual tax returns to any federal law enforcement agency investigating suspected "terrorist" activity, which can, in turn, share it with local and state police. Intelligence agencies such as the CIA and the National Security Agency can also receive that information.

The information that can be shared includes "a taxpayer's identity, the nature, source, or amount of his income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability, tax withheld, deficiencies, overassessments, or tax payments, whether the taxpayer's return was, is being, or will be examined or subject to other investigation or processing, or any other data received by, recorded by, prepared by, furnished to, or collected by the Secretary with respect to a return."
That provision had already existed in federal law and automatically expired on January 1, 2008.

What's a little odd is that there's been little to no discussion of the IRS sections of the bailout bill, even though they raise privacy concerns. Treasury Secretary Henry Paulson said this week: "I will continue to work with congressional leaders to find a way forward to pass a comprehensive plan to stabilize our financial system and protect the American people by limiting the prospects of further deterioration in our economy." He never mentioned the necessity of additional IRS undercover operations.

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Urgent: Tell Your Congress members to Vote "NO" on the $700 Billion Financial Industry Bailout

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From: National Taxpayers Union

Urgent: Tell Your Elected Officials to Vote "NO" on the $700 Billion Financial Industry Bailout

Today, Sunday, September 28, Congress is scheduled to vote on the $700 billion bailout package. Below is a Vote Alert sent by NTU to each Capitol Hill office.

As a concerned taxpayer, you can help by picking up your phone and urging your elected officials to oppose this plan.

Contact information can be found by clicking here.

******************************************
National Taxpayers Union Vote Alert

NTU urges all Members of Congress to vote "NO" on the $700 billion financial industry bailout plan.

This unconscionable scheme forces the vast majority of taxpayers who were honest and prudent to bail out firms on Wall Street that made bad business decisions. Furthermore, it does nothing to address the root causes of today's market difficulties. The long-term effects of this fiasco, including inflation, a weaker dollar, and an even more precarious federal balance sheet, are almost certain to outweigh the shallow short-term stabilization of moneyed interests who have been twisting arms on both ends of Pennsylvania Avenue.

Congress helped to create this debacle with the Community Reinvestment Act, poor tax policies, hastily designed mark-to-market regulations, and spectacular negligence with regard to the systemic risks posed by Fannie Mae and Freddie Mac. Rather than addressing those core problems, this disgraceful plan instead snatches $700 billion from the pockets of hard-working Americans, the vast majority of whom had no part in this horrific play.

Congress apparently decided to listen to a few political heavy-hitters in the financial community about the need to shovel boatloads of taxpayer money into their faltering businesses, rather than listening to their constituents who oppose this giveaway almost unanimously. The legislation before you has made nips and tucks to the Treasury's original proposal that ultimately cannot conceal its fundamental flaws. Surely some Members will reap what they have sown at the ballot box for their shocking negligence of taxpayers' concerns.

Roll call votes on the bailout will be one of only a handful of votes in the last decade to receive the highest weight of 100 in our annual Rating of Congress.

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Tell Pres. Bush and your Congress members NO to company bailouts

US Sec. of Energy Bodman, US Sec.
of Treasury Paulson, Pres. Bush
and VP Cheney.
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From: National Taxpayer Union

No More Bailouts!

Are you tired of hearing about how your tax dollars are going to bail out government-sponsored enterprises and private institutions? We are.

Did you send your hard-earned money to the IRS to cover the fiscal mismanagement at Fannie Mae, Freddie Mac, Bear Stearns, and AIG? We didn’t.

Do you like the sound of a new $25 billion bailout for big auto companies? We don’t.

It’s time to say “enough is enough!” Sign our “No More Bailouts” petition to Congress and the President today.

Unless people like you speak out, there’s no end in sight to this abuse of taxpayer dollars. Act today!

Sign this petition and notify:
President George W. Bush
Your Congressperson
Your Senators

As a taxpaying American, I demand an end to the public bailouts of government-sponsored enterprises and private institutions.

America's economic success is largely due to our free-market system, in which risk is a fundamental element. Some businesses succeed tremendously, some fail spectacularly. But they should do so on their own, not with the backing of millions of reluctant citizens' paychecks.

If troubled institutions seek relief, they should restructure their businesses the way millions of families have had to restructure their budgets, rather than bellying up to Congress' trough.

Bailouts that keep mismanaged organizations afloat delay natural corrections to unsound business practices. In the long run, bailouts do not "rescue" anyone because they stall the adoption of necessary reforms that would prevent future repeats of bad choices.

Enough is enough. No more bailouts. Not with my tax dollars.

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Taxpayer research online advances for Tax Freedom Day

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From: Institución Futuro

I have the great pleasure of sharing with fellow American citizens Spain's excellent way to calculate annual "Tax Freedom Day". Here in the US, the nonpartisan tax research group Tax Foundation calculates each year what our own Tax Freedom Day is; but, Institucion Futuro goes one step further and provides an online calculator for more individualized results. Below is text from a letter from Ana Yerro; the links she provides are English-language web pages.

Dear David,

This is Ana Yerro, head of communications of the Spanish think tank Institución Futuro (www.ifuturo.org). I read your blog “All things reform” on regular basis and also we are friends in Facebook.

I am writing you to inform you about Institución Futuro (www.ifuturo.org) new initiative. We have launched the Tax Freedom Day campaign (www.diadelcontribuyente.org/en) in Spain. The official presentation took place on June 5^th and it was a full success in terms of media coverage and citizens participation. Our ‘best man’ was Pedro Schwartz, a renowned Spanish liberal economist who supports our cause. Until July 21st , over 2.000 citizens have calculated their own Tax Freedom Day with our taxes calculator, and the web site, which includes many resources, has obtained until now more than 5.000 sessions, and this is just the beginning!

The results are as follows: the Navarra Tax Freedom Day is April 26^th, while the Spanish Tax Freedom Day is May 21^st. (http://www.diadelcontribuyente.org/en/cifras.php).

The Instituto Futuro online Tax Freedom Day calculator helps the individual citizen; it takes advantage of the latest internet technology for taxpayer research in determining at what point in the year you stop paying for the government and start paying for yourself.

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Bipartisan domestic tyranny propels greed driven plutocracy

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From: Progress Report

Poisonous Plutocracy Pushes Economic Inequality

[...] In 2009, Americans who make over $1 million a year will save an average $32,000 from the Bush tax cuts on capital gains and dividends. The average American household will save $20.

Between 1986 and 2005, the income of America's top 1 percent of taxpayer jumped from 11.3 to 21.2 percent of the national total. Their federal income taxes dropped from 33.13 percent of total personal income in 1986 to 23.13 percent in 2005. From 2001 to 2008, the net worth of the wealthiest 1 percent grew from $186 billion to $816 billion.

Economic inequality and injustice reflect a political disaster, even with regular elections. It has resulted from government decisions on tax cuts, spending, trade agreements, deregulatory measures, labor unions, corporate handouts, and regulatory enforcement. All crafted to benefit the rich and powerful and leave the rest of us behind. It has happened under Democratic and Republican presidencies and congresses. Bipartisan domestic tyranny propels greed driven plutocracy.

What do we desperately need? A national discussion and referendum on inequality-pumping plutocracy, that none of the major presidential candidates shows any interest in having. Certainly not Barack Obama with his vacuous talk of change (but not about the political system) and John McCain's incredulous talk of reform. [...]

.
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.

Loophole spared oil companies billions in royalty payments to American taxpayers

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From: Public Citizen

Another Sweetheart Deal for the Oil Companies

A bureaucratic oversight has allowed 24 oil companies to skip out on more than $1.3 billion in royalties for the privilege of extracting oil and natural gas from U.S. territory in the Gulf of Mexico. But this $1.3 billion in forgone royalties pales in comparison to the $60 billion that Americans stand to lose in royalty revenue over the life of these leases. If Congress repeals the moratorium on offshore drilling, these freeloading oil companies will gain more record profits while American families are left holding the bag.

.
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.

Say NO to costly and unnecessary nuclear weapons projects

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POGO (Project on Government Oversight) is asking us who are represented by US Senators in the Senate Appropriations Committee, to tell them NO to costly and unnecessary nuclear weapons projects. This week, the Senate Energy and Water Appropriations Subcommittee and the full Senate Appropriations Committee will be marking up the Senate's version of the Energy and Water Appropriations bill.

The US Senate has the opportunity to eliminate three projects worth billions of taxpayer dollars; otherwise, these projects would create unnecessary national security risks and costs. This savings can be made without diminishing the national security mission of the US nuclear weapons complex.

Take action right now on this urgent action alert-- first, please check to see whether either of your two senators are on the Senate Appropriations Committee. If so, then go to POGO's campaign webpage, make any personal changes you might want to the sample letter and fill out the short address form.

If you prefer to call their official senate offices personally and leave this message with their staff, you may call the Capitol Switchboard at 202-224-3121 (this is not a toll-free call).

Then, tell all your friends about this timely alert. Also, please share this alert with your social networks!

Thank you

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> US House/ US Senate Mobile- is.gd/D8V
> "Ready, set, contact your reps.!"
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Tell your US Rep. and two US Senators NO to political manipulation of procurement process

Citizens Against Government Waste is returning to a fight in Congress they thought they had already won-- open and competitive bidding in the defense procurement process. Yet, despite a scandal, a massive federal fine, and even criminal penalties for some of those involved, Boeing Co. is once again trying to use its political connections in Congress to secure an Air Force refueling tanker contract.

While the $35 billion cost to taxpayers of the tanker contract is significant, more is at stake in this battle than dollars and cents. Letting Congress disrupt the competitive procurement process will set a dangerous precedent for all future federal contracts. Members of Congress will simply select their favored pet contractors, regardless of the cost to taxpayers or the impact on our Armed Forces.

Please tell your U.S. Representative and Senators today that you won’t stand for this blatant political manipulation, by sending a customizeable letter from CAGW's website. Or, call them directly through the Capitol Switchboard at 202-224-3121. Thank you

Tell your two US Senators and US Representative YES to a strong whistleblower protection bill

Public Citizen is asking us to send a message to our respective two US Senators and US Representative in support of government whistleblowers. Last year, strong whistleblower protection bills were passed in both houses of Congress. Now, the Senate and the House have both passed bills by a veto-proof majority, but they must be reconciled- now it's time for Congress to finish the job by passing a final bill; emphasis should go to the House version.

When scientific research is altered or suppressed, government contractors waste millions of taxpayer dollars, or national security documents are falsified, witnesses need to know that they can blow the whistle without reprisals endangering their careers and their lives. Please go to this Public Citizen whistleblower campaign's webpage and send your message to emphasize the House version for strongest whistleblower protection (you can edit the message if you wish). If you prefer to call the Capitol Switchboard, the phone number is 202-224-3121. Thank you

Tell your US Rep. and two US Senators NO to the 2008 Farm Bill

The National Taxpayers Union is asking us to send a letter to each our US Representative and two US Senators, asking them to uphold President Bush's veto of the 2008 Farm Bill.

Congress is poised to pass a five-year, $300 billion agricultural policy plan. Known simply as the Farm Bill, it includes provisions that deliberately aim to keep certain food prices (like sugar and dairy products) high. It allows millionaires to continue receiving subsidy handouts from the government, and it will also spend more money on fraud-ridden food welfare programs.

If we value efficient, fiscally-disciplined government, please send this letter (you can edit it if you wish). Or, you can reach your congressmembers through the Capitol Switchboard at 202-224-3121. Your representatives want to hear from you- tell them NO to the 2008 Farm Bill. Thank you

Tell your two US Senators to vote YES for full-vote Washington, DC representation

Public Citizen is asking us to call or write our US Senators in favor of having a US Representative for Washington, DC residents. Our more than half a million District of Columbia citizens have been paying federal income taxes, fighting in wars and all of the other things Americans have done over the years, but they don't have a vote in Congress!

Prominent constitutional scholars and former Congressmembers agree that they can legally have their own full-voting Congressmember. Why wait any longer? Please call both of your US Senators at the Capitol Switchboard: 202-224-3121; or, use Public Citizen's webpage to send them a message. Then email action@citizen.org with your senators' responses. Thank you

Call your two US Senators and ask them to support the Senate Campaign Disclosure Parity Act

Public Citizen is asking us to call our two US Senators, and ask them to support the Senate Campaign Disclosure Parity Act (S.223). It would require all senate candidates, both challengers and incumbents if office, to file their campaign finance reports electronically (as opposed to paper). Just as important, they need to support the bill without the Ensign Amendment, which is unconstitutional.

In addition to bringing technology up-to-date, it would save the American taxpayer $250,000. per year! Call both of your senators right now; you can reach them at the Capitol Switchboard at 202-224-3121. Then, if you can, please leave word with Public Citizen on whether they do already support the bill without the amendment. Thank you

Call your two US Senators and your US Representative and ask them to co-sponsor the Fair Share Act

A new bill has been introduced in both houses of Congress, called the Fair Share Act (US House bill: H.R.5602) (US Senate bill: S.2775). It would prevent government contractors from using offshore tax havens to avoid paying taxes. We need to show Washington that, this tax season, Americans expect tax-dodging contractors to be held accountable for their tricks.

Call your two US Senators and US Representative; the Capitol Switchboard number is 202-224-3121. They want to know what you think. Thanks

The 2008 Congressional Pig Book from Citizens Against Government Waste is published

The 2008 Congressional Pig Book Summary is here!

This morning Citizens Against Government (CAGW) shared with the American people the names of those in Congress who are responsible for the 11,610 pork-barrel projects costing you $17.2 billion in the fiscal 2008 budget. They were joined by leading opponents of this congressionally earmarked spending, including Sen. Jim DeMint (R-S.C.) and Reps. John Campbell (R-Calif.), Jeff Flake (R-Ariz.), Tom Price (R-Ga.), and Paul Ryan (R-Wis.).

Topping this year’s list of outrageous special-interest projects are:

* $4,840,870 for wood utilization research;
* $1,529,220 for the Appalachian Fruit Lab;
* $984,400 for Idaho's strategic plan for managing noxious weeds; and
* $98,000 for a walking tour of Boydton, Va. (population 474).

Earmark reform is a hot topic in Washington these days, yet Congress' taste for spending on personal projects stays. There has been a decrease in earmark spending in the last few years, but over $17B is still a lot of waste in a secretive budgeting process.

For a donation of $25 or more, Citizens Against Government waste can mail you a copy of their annual book. Your contributions also help the work of this non-profit in its fight for fiscal discipline in DC.

US senator honors fiscal discipline, transparency and accountability

US Senator John Cornyn (R-TX) replied to a letter I wrote to him as a constituent on the issue of spending earmarks. He agreed with me that we need more transparency and accountability in Congress, especially when it comes to spending the taxpayer's money. He co-sponsored the recent one-year earmark moratorium amendment that eventually failed to pass. He says the right words to me as a government reformer, and am honored to have him as one of my senators.

Here is a snippet of that letter of his:

" Members of Congress should have a say in how their constituents’ tax dollars are allocated, but every earmark should be openly debated and voted on. Taxpayers in Texas, and across the country, demand and deserve greater fiscal discipline and accountability in Washington, D.C. I have worked hard during my time in the Senate to reduce the size of government and eliminate wasteful spending—saving taxpayers’ money. Although the Senate did not pass this one-year moratorium amendment, it is my hope that by continuing to work together to fix the broken process by which we allocate federal dollars, Congress will send a clear message to the American people that we are listening.

America’s founding fathers understood a free society could not exist without informed citizens and an open, accessible government. That’s why strengthening government transparency and accountability has been among my highest priorities since coming to the Senate. The more information that we can put in the hands of the American people about what Congress does on a daily basis, the stronger our democracy will be. I can think of no area where accountability is more important than in the process of how Congress spends the money that Texans send to Washington. "