September 30, 2008 - 17:03
News: Texas

Congressmen, challengers speak out on bailout legislation

Lawmakers across Texas spoke out about Monday's bailout. In fact, so many people tried to access their members' House of Representatives websites that most people were unable to access the sites due to high traffic. Below are reactions from Texas congressmen and their challengers in races analysts say are more competitive contests. Each of these incumbents voted against the proposed bailout.

TX-7

U.S. Rep. John Culberson (R-Houston)

"This bailout will saddle our children and grandchildren with at least $700 billion in new debt on top of the existing $9.8 trillion national debt. It will double the budget deficit overnight, and it will lead to additional bailouts as the multi-trillion dollar credit default pyramid scheme collapses," Culberson said. 

"I will not vote to bankrupt future generations to protect Wall Street investment banks from their own mistakes. The best solution to this crisis is to suspend mark-to-market accounting rules, establish a mandatory insurance/guarantee program to cover the banks' losses at no expense to taxpayers, cut the capital gains rate to zero, cut taxes for offshore dollars repatriated back into the U.S., and slash corporate tax rates to encourage investment and lending."

Michael Skelly (Democratic challenger)

"The House voted to reject a massive bailout plan that is woefully insufficient in addressing the systemic problems in our financial markets," Skelly said. He criticized Culberson for "presiding" over financial problems that led to the market meltdown.

"The bailout compromise plan does not go nearly far enough in protecting taxpayers and ensuring that such an event will not happen again.  There is not enough specificity as to how taxpayers will be able to recuperate their money in five years.  The provisions that limit executive compensation are not nearly deep enough, covering only the top five executives."

He added the plan gave Treasury Secretary Paulson "too much authority" and needed a "much tighter governance authority."

TX-10

U.S. Rep. Michael McCaul (R-Austin)

"Fundamentally I have deep concerns about government intervention into the private sector.  We cannot allow responsible taxpayers on Main Street to bail out irresponsible banks on Wall Street," McCaul said. "I believe there is a way to rescue our economy without placing the bulk of the burden on home owners and businesses who struggle to meet their own bottom line."

"Instead, we have rushed into a rescue plan that taxpayers may very well need to be rescued from.  If this Congress doesn't get this right this could result in the largest sub-prime loan ever issued.  If we don't make the necessary reforms to fix the fundamental problems with our economy we are throwing good money after bad.  It will be on the backs of the taxpayers and the debt will be passed down to our children.  That's the result we want to avoid."

Larry Joe Doherty (Democratic challenger)

Doherty repeated criticisms he made about McCaul during a press conference last week.

TX-22

U.S. Rep. Nick Lampson (D-Stafford)

"The solutions to the financial crisis need to focus on the people who are victims of it, not the executives on Wall Street who are responsible for it," Lampson said.  "Sticking the bill to bailout Wall Street risk takers on people who have worked all their lives responsibly to provide for their families is outrageous."

"Americans are struggling to keep their houses, get a small business loan, or pay for everyday expenses in this troubled economy. It is absolutely unacceptable for our answer to the American people's hardship to be a blank check to those who put us there."

Pete Olson (Republican challenger)

"Congress rejected a compromise bill to address the looming crisis in our economy.  While the financial dangers are real and impending, Congress must first make sure that they do not cause further unintended consequences with hasty action today," Olson said.

"I have received dozens of calls from concerned citizens in our district - all with one message:  that the American taxpayer should not foot the bill for financial malfeasance or government-mandated programs that forced banks to make bad loans.  There is plenty of blame to go around, but the American taxpayer is not at fault, and should not be forced to pay the price."

TX-23

U.S. Rep. Ciro Rodriguez (D-San Antonio)

"I could not in good conscience support a blank check to those who were irresponsible and got us in this position in the first place," said Rodriguez. "While an improvement from the original proposal, I believe this new bill did not go far enough to ensure taxpayers are protected and that this would not happen to us again.  It is my hope that we can move swiftly ahead to forge a bipartisan agreement that will help to fix our ailing economy."

Lyle Larson (Republican challenger)

Larson spoke out about the bailout in a Sept. 24 newsletter.

"As a small business owner, I am a strong advocate for the free market. I disagree with these practices as they set a precedent for all businesses and individuals to expect that the government will be their safety net if they make poor decisions," Larson said.

"We cannot allow Congress to continue handing out our tax dollars based on this unsound economic policy. Our country was founded on individual freedom. With individual freedom comes individual responsibility, not reliance on government assistance."

Jason Thurlkill is a PolitickerTX.com Reporter and can be reached via email at noreply@politicker.com.

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