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:

  • Sponsored by G Suite

    Cross-Agency Teamwork, Anytime and Anywhere

    Dan McCrae, director of IT service delivery division, National Oceanic and Atmospheric Administration (NOAA)

    Download
  • Data-Centric Security vs. Database-Level Security

    Database-level encryption had its origins in the 1990s and early 2000s in response to very basic risks which largely revolved around the theft of servers, backup tapes and other physical-layer assets. As noted in Verizon’s 2014, Data Breach Investigations Report (DBIR)1, threats today are far more advanced and dangerous.

    Download
  • Sponsored by One Identity

    One Nation Under Guard: Securing User Identities Across State and Local Government

    In 2016, the government can expect even more sophisticated threats on the horizon, making it all the more imperative that agencies enforce proper identity and access management (IAM) practices. In order to better measure the current state of IAM at the state and local level, Government Business Council (GBC) conducted an in-depth research study of state and local employees.

    Download
  • Sponsored by Aquilent

    The Next Federal Evolution of Cloud

    This GBC report explains the evolution of cloud computing in federal government, and provides an outlook for the future of the cloud in government IT.

    Download
  • Sponsored by LTC Partners, administrators of the Federal Long Term Care Insurance Program

    Approaching the Brink of Federal Retirement

    Approximately 10,000 baby boomers are reaching retirement age per day, and a growing number of federal employees are preparing themselves for the next chapter of their lives. Learn how to tackle the challenges that today's workforce faces in laying the groundwork for a smooth and secure retirement.

    Download
  • Sponsored by Hewlett Packard Enterprise

    Cyber Defense 101: Arming the Next Generation of Government Employees

    Read this issue brief to learn about the sector's most potent challenges in the new cyber landscape and how government organizations are building a robust, threat-aware infrastructure

    Download
  • Sponsored by Aquilent

    GBC Issue Brief: Cultivating Digital Services in the Federal Landscape

    Read this GBC issue brief to learn more about the current state of digital services in the government, and how key players are pushing enhancements towards a user-centric approach.

    Download

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