Moderate Democrats pitch bailout repayment bill

Six leaders of the Blue Dog Coalition are pressing for legislation to recoup the cost of the $700 billion Troubled Asset Relief Program and pay down the growing deficit.

In a letter sent last week to Speaker of the House Nancy Pelosi, D-Calif., and House Majority Leader Steny Hoyer, D-Md., the Blue Dogs said they wanted to "ensure that any legislation engineered to recoup the outstanding costs of expenditures authorized under [TARP] is fair [and] equitable."

The debate has picked up steam ever since estimates suggested TARP will cost far less than initially projected. Congressional Budget Office recently put the price tag at just under $100 billion.

President Obama proposed in January imposing a 0.15 percent tax on the liabilities of banks, thrifts, securities dealers and other entities with more than $50 billion in assets, which the White House estimates would raise $90 billion over ten years to help pay down the deficit.

Meanwhile, House Democrats are exploring using a variant on the bank fee proposal to help offset job-creation initiatives. Several lawmakers of both parties have said they want to exempt firms that did not take any TARP assistance from the fee.

Rep. Heath Shuler, D-N.C., a Blue Dog whip and one of the signers, said in a separate release that it is imperative to get the money back.

"Billions of dollars went to wealthy bank executives whose reckless decision-making contributed to our nation's economic downturn in the first place," he said. "Making sure that bailouts do not add to the national debt is the only responsible option."

"Our nation's fiscal outlook is bleak. It is imperative that the cost of this [TARP] package be recovered without adding an additional hundreds of billions of dollars to our federal debt," said Rep. John Tanner, D-Tenn., another letter signer and a member of the Ways and Means Committee.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

    Download
  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

    Download
  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

    Download
  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

    Download
  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care

    Download

When you download a report, your information may be shared with the underwriters of that document.