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Senator Richard Lugar


      Remember those emails and letters we wrote to our representatives asking them to spare us from the wasteful spending of President Obama's "stimulus" package? Well, I thought I'd copy two of them for you here. Bet you couldn't guess which Party each represents just by their answers, could we?


Dear Mr. Matthews:
Thank you for contacting me. I did not support the Democratic Party stimulus package that was signed into law by President Obama on February 17, 2009.

I support responsible, targeted action to stimulate economic growth, create jobs, encourage exports, and assist those who have been impacted by the downturn in the economy. And while there were several provisions in the stimulus bill that I supported, on balance, a heavy package of spending proposals that will not take effect for years does not achieve these goals. Regrettably, the package does make certain that our children will face hundreds of billions of dollars of additional debt.

The stimulus bill was a sprawling affair, with massive spending for a wide variety of projects, some of which are completely unrelated to the immediate economic challenges before us. Further, the bill contains provisions that threaten to undermine the very economic growth it purports to stimulate, placing American businesses and their workers in danger of trade-based retaliations and escalating financial protectionism.

The U.S. Treasury Department estimates that new net borrowing could increase more than three times from $788 billion in 2008 to as much as $2.5 trillion in 2009. This is more than 10 times greater than the level in 2006 or 2007. This raises serious questions as to whom in what countries around the globe will buy our bonds to cover this debt, especially with hostile trade provisions in place. Already, more than half of our treasury debt obligations are held by foreigners, most significantly by China and Japan, who are also facing financial difficulties. Thank you, again, for contacting me.

Sincerely,

Richard G. Lugar
United States Senator
   

Congressman Baron Hill


      Dear Mr. Matthews,
Thank you for contacting me about H.R. 1, the American Recovery and Reinvestment Act. I received numerous calls and emails from constituents as Congress debated how to revive the U.S. economy, and hearing your insights was extremely important during this process.

Our nation is currently in the midst of a severe recession. The U.S. has shed more than 3.6 million jobs since this recession began, with 600,000 of these jobs lost in the last month alone. The nation's poor economic climate is being felt locally in Indiana as well. The unemployment rate for Hoosiers is now higher than the national average at 8.2 percent, and 266,469 Hoosiers were unemployed in December.
The New Year has not brought a respite to our nation's economic troubles. Every day another company is announcing massive layoffs and more individuals are watching their hard-earned retirement savings deplete. During the last few weeks, Congress considered legislation to help jumpstart our shaky economy. On February 13, 2009, I voted to approve the conference report of H.R. 1, the American Recovery and Reinvestment Act. The President signed H.R. 1 into law on February 17, 2009. While my fiscal conservative nature gave me pause at spending so much money, I believe the cost of doing nothing would have been far more devastating to our economy.

Further, I am pleased to report I was successful in getting many of the provisions I believe will not immediately stimulate our economy removed from the package. With the support of my Blue Dog colleagues, we removed provisions that would have: provided a tax break for Hollywood film producers, funded sodding the National Mall, allocated money for the prevention of Sexually Transmitted Diseases, and funded the creation of a polar-ice breaking ship for the U.S. Coast Guard.

Although not perfect, this legislation addresses both our immediate and long-term economic issues. The bill provides significant tax relief for Hoosier families and businesses. The bill would cut taxes for more than 95% of working families in the United States by providing a refundable tax credit of up to $400 for working individuals and $800 for working families. The bill also makes large investments to the states for short-term transportation and infrastructure projects, and allocates much-needed funding to restore state Medicaid and education programs. H.R. 1 also provides new incentives for renewable energy projects and science and research-based programs that will help us stay competitive in the global economy.

In addition, the stimulus package delivers critical support to the State of Indiana to ensure individuals receive their full unemployment benefits. With the Indiana Department of Workforce Development's funds almost exhausted and more people applying for unemployment benefits daily, this federal assistance is imperative.

I am also pleased that the legislation is directed at those who need it most-hard-working families, not Wall Street or big bank executives. To this end, I helped secure a provision that would provide a homeownership tax credit to first-time homebuyers. H.R. 1 also imposes new compensation limits for executives at financial institutions receiving government funds.

While I believe it is not the time to be ideologically rigid at the expense of Hoosier families, my support of this stimulus package should not serve as an indication of future fiscal measures that will receive my vote. I am now more than ever committed to making sure Congress returns to long-term fiscal reforms, such as statutory pay-as-you-go budgeting (PAYGO).

Thank you again for contacting me about this important legislation. The President has created a website (www.recovery.gov) which will detail how the stimulus funds are spent, and how grants and awards are allocated. If you would like additional information, or have further questions or comments, please do not hesitate to contact me at 202.225.5315. If you would like to receive periodic email updates on my Congressional activities, please visit http://baronhill.house.gov.




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Floyd County Republican Party - Floyd County, Indiana 2008
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Dave Matthews, Chairman
 

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