PITTS’ WORST VOTES: BIG BUCKS FOR BAILED-OUT BANKERS
When you’ve taken enough money from Wall Street lobbyists, it’s kind of hard to cut their bosses’ pay. That was the message as the Herr 2010 campaign came across this Joe Pitts baddie:
Vote Number 30: H.R. 1664 — Amend Executive Compensation Provisions of the Emergency Economic Stabilization Act of 2008
The Emergency Economic Stabilization Act shown above sought to prevent a total collapse of America’s banking system by creating the Troubled Asset Relief Program to buy up the worst loans on the books of endangered banks. It became known as the Bank Bailout, and in time achieved its goals, and has become unpopular with many people.
It soon became evident that banks which had taken bailouts were continuing to pay their executives multi-millions as if nothing were amiss. This bill sought to rein in those abuses by prohibiting unreasonable and excessive compensation not based on performance standards. On April 1, 2009, the House voted on this bill, and guess who decided that it was too tough on those under-appreciated bankers?
Pitts votes NO.
The bill passed the House 247-171. But Joe’s lobbyist chums knew it wasn’t because of him.
Rep. Pitts pretends to be careful with tax dollars, unless they’re being shovelled into the pockets of his pals. Twenty-nine Bad Pitts Votes to go, one each day.
Helm Says Marcellus Shale Tax Would Hurt the State’s Economy
HARRISBURG – Rep. Sue Helm (R-Susquehanna Township) today issued the following statement after casting a dissenting vote on the Marcellus Shale severance tax, which passed the House by a vote of 104 to 94:
“I believe a fair natural gas severance tax may be appropriate, but the proposal put forward in Senate Bill 1155 is too high and has the potential to further harm the state’s economy.
“The natural gas drilling industry is moving full steam ahead by providing good-paying jobs to the citizens of Pennsylvania. What House Democrats have pushed through is nothing more than excessive taxation at the expense of the people of Pennsylvania. We cannot continue the policies of high taxes and expect our economy to recover. We must foster job growth that will put people back to work in family sustaining jobs.
“If this bill becomes law, Pennsylvania would be the only state in the union to have this high of a severance tax rate. Our neighboring states have low tax rates, which would attract natural gas drilling companies to those areas since they would be viewed as business friendly and pro-economic growth.
“A common misconception is that drilling companies that are already operating in Pennsylvania are not paying taxes. This is completely wrong; these companies are subject to paying the Corporate Net Income Tax and the many other business taxes.
“Pennsylvania has the opportunity to become a leader in the natural gas drilling industry and a significantly high tax rate right out of the gate will hurt the local and state economies as well as forcing more of our citizens into unemployment.
“This legislation also fails to return a significant portion of the revenue generated to those municipalities that host these drilling sites. I believe it is prudent for a large portion of the tax revenue to be used to benefit those communities.”
MSC Statement on the PA House Passed Severance Tax
Senate should consider alternative to House’s uncompetitive approach
Canonsburg, Pa.– This evening, the Pennsylvania House of Representatives passed a massive, uncompetitive new tax on the responsible development of clean-burning natural gas from the Marcellus Shale formation, which has helped create nearly 88,000 jobs in Pennsylvania alone as the state’s unemployment rate continues to remain near double-digits. This massive new tax – 39 cents per mcf of natural gas – represents the nation’s highest among shale gas producing states. In fact, this onerous tax on shale gas production is twice as high as West Virginia’s, currently the nation’s highest.
Equally problematic, this enormous tax does not allow for natural gas producers to recover and reinvest the millions of dollars required to produce shale gas from the Marcellus, as virtually every other major shale gas producing state does. Many members of the House of Representatives voted against this massive tax, recognizing the negative impact it would have on job creation and investment in Pennsylvania.
Kathryn Klaber, president and executive director the Marcellus Shale Coalition (MSC), issued this statement following the vote:
“Votes for this misguided, unprecedented tax that narrowly passed this evening, are votes against job creation and the responsible development of clean-burning domestic natural gas, which is helping to lower energy prices for Pennsylvania consumers and driving down our nation’s dependence on foreign sources of energy.
“We are confident, based on Senator Scarnati’s public comments this evening, that the Senate will remain steadfast in their commitment to realize a competitive climate for growth and prosperity for Pennsylvanians.
“To make certain that Pennsylvania’s economy and workforce remain ahead of the curve in the increasingly competitive global economy requires commonsense solutions that encourage capital investment in the Commonwealth. A competitively structured tax in Pennsylvania, that allows for critical capital reinvestment, coupled with smart regulatory and legislative modernizations, is key to ensuring that this historic opportunity is realized in ways that benefit each and every Pennsylvanian.”
NOTE: In a statement, Rep. Dwight Evans (D-Philadelphia), chairman of the House Appropriations Committee, underscored the fact that “We need a tax that is competitive with other shale states.” Rep. Evans adds: “I also recognize the industry will want to weigh in and argue for a tax with a rate and characteristics that allow for capital recovery, a tax it can support as it does in every other state where drilling occurs. These issues are all negotiable.”
CARNEY VOTES TO STAND UP FOR AMERICAN WORKERS AND BUSINESSES
House passes legislation to end currency manipulation by foreign governments
WASHINGTON, DC – Today the U.S. House of Representatives passed H.R. 2378, the Currency Reform for Fair Trade Act, commonly know as the China Currency Bill. The bill, which Congressman Carney co-sponsored, will address China’s fundamental undervaluation of its currency, protect American manufacturing jobs and cut our trade deficit.
“Saving and creating American jobs is a top priority for me,” said Congressman Carney. “We live in the greatest country in the world but we know that America must stay competitive in the global market. Each year we lose far too many jobs because of unfair competition from overseas companies and we must do all we can to keep manufacturers here in the US.”
Last March Congressman Carney introduced the Made in America Act of 2009. This bipartisan legislation creates tax cuts to support American companies that keep their jobs and businesses “made in America”. The US currently has one of the highest corporate tax rates in the world at 35 percent. The Made in America Act lowers the tax rate to 30 percent, which will attract new businesses and keep American jobs right here at home.
Currently, China suppresses the value of its currency (the RMB), making China’s exports cheaper than they would be if China allowed its currency to be set by the market. This policy places a drag on US economic growth and job creation. If China allowed its currency to respond to market forces, it would create a million US manufacturing jobs and cut our trade deficit with China by $100 billion a year, with no costs to the US treasury.
“For too long China, and other foreign governments, have intervened in their currency markets artificially making US products more expensive. The Currency Reform for Fair Trade Act will protect, create and encourage economic growth in American manufacturing without adding a single dime to the deficit and I was proud to support it.”
H.R. 2378 amends the Tariff Act of 1930 to require the Department of Commerce to determine whether the exchange rate of the currency of an exporting country is fundamentally undervalued or overvalued against the US dollar and take actions under a countervailing duty or antidumping duty to offset such misalignments. The bill passed the House with a vote of 348 to 79 and now moves to the Senate for final passage.
HARRISBURG – Rep. Seth Grove (R-Dover) released the following statement regarding his negative vote on Senate Bill 1155, which would institute the nation’s largest severance tax on natural gas:
“Not only was the way in which this proposal was brought to the floor dubious, but I also question the constitutionality of the measure because revenue bills must originate in the House. If you have to use procedural tricks to get legislation to the floor, it says a lot about the bill’s merits. Because of the way in which the bill came up, we were only able to consider one amendment to improve the legislation, which required a rule suspension.
“This is an excessive tax that could kill one of the only job-creating industries we have in the Commonwealth right now. Not only will the tax be extreme at its implementation, but it will also grow exponentially as the index on which it is based increases. The bottom line is this tax will be passed onto the consumers who rely on gas for heating their homes, heating their water and cooking their food.
“I find the distribution of the revenues from this tax disturbing. The General Fund will get the lion’s share of the funding, which will only add to the tax and spend mentality of the administration. The 16 percent allocated to local governments will not even cover one mile of road paving, but it is these local governments that will feel the impact of the drilling. The programs directly impacting Marcellus Shale gas extraction oversight and clean up will only receive 19 percent of the total allotment. Like gambling expansion, which was supposed to be for property relief, this severance tax is a ploy for more government spending, not a genuine effort to protect the environment.”
ALTMIRE VOTES TO HOLD CHINA ACCOUNTABLE FOR CURRENCY MANIPULATION
(WASHINGTON, D.C.) — Today, U.S. Congressman Jason Altmire (PA-04) voted for legislation that safeguards American jobs by holding China and other countries accountable for manipulating their currencies. Congressman Altmire is an original cosponsor of the Currency Reform for Fair Trade Act (H.R. 2378), which passed the House today by a vote of 348-79. Last week, Congressman Altmire joined a bipartisan group of Members of Congress and petitioned the House leadership to hold a vote on this important legislation.
“By consistently undervaluing its currency, China artificially makes American-made goods more expensive and hampers our ability to compete in the global economy,” Congressman Altmire said. “This bill will help American manufacturers fight back against underhanded trade practices and ultimately strengthen our economy here at home.”
The Currency Reform for Fair Trade Act directs the U.S. Department of Commerce to treat currency manipulation as an illegal subsidy and allows it to impose duties on imports from countries that undervalue their currencies. This carefully crafted legislation is consistent with America’s commitments to the World Trade Organization (WTO).
The International Monetary Fund (IMF), the U.S. Treasury Department, and several leading economists have determined that China’s currency is undervalued by as much as 40 percent. According to the Economic Policy Institute, between 2001 and 2008 more than 2.4 million American jobs were lost as a result of China’s currency manipulation and unfair trade policies.
HARRISBURG – Rep. Dave Reed (R-Indiana) today voted against a bill approved by the state House that would enact a new tax on natural gas harvested in Pennsylvania.
Reed disagreed with the way the new tax revenues will be distributed. The tax is set to take effect beginning Jan. 1, 2011. Between that date and June 30, when the state fiscal year comes to an end, the tax is expected to bring in approximately $120 million. Of that money, only approximately $9 million – or 7.5 percent – will go directly to local governments with natural gas drilling sites inside their borders. The other 92.5 percent or $141 million would go to the state to control in one way or another.
“A greater share of the revenue should go to the communities where the natural gas is being harvested,” Reed said. “This bill unfortunately short changes the communities that will most need the funding. This proposal isn’t a fair deal.”
The natural gas tax, at 39 cents per thousand cubic feet, would be the highest in the nation. Pennsylvania already consistently ranks as one of the most antagonistic states toward businesses. Pennsylvania employers already pay some of the highest taxes in America through the Commonwealth’s existing corporate net income tax, capital stock and franchise tax and personal income tax.
“This bill combines an astronomical tax rate with an unfair revenue distribution plan,” Reed said. “This legislation certainly would not help to make Pennsylvania more economically competitive.”
The bill now heads to the Senate for consideration.
Passage of Murphy-Ryan Bill A Win For US Jobs and Manufacturing
(Washington, D.C.) – Upon passage today of the Currency Reform for Fair Trade Act (HR 2378) by the House of Representatives, Congressman Tim Murphy, the bill’s co-author, released the following statement:
“This is truly a historic moment. For years American manufacturers and workers have been pleading for Washington to stand up for US jobs and enforce global fair trade. Passage of the Currency Reform for Fair Trade Act sends a clear message that Congress heard those pleas and is taking a giant step forward to help revitalize the American manufacturing sector. We are no longer waiting for empty promises to come true, we took action.”
“The US has lost more than 5 million manufacturing jobs in the past decade. That’s an astounding 17% of all manufacturing jobs in our nation lost. Did we stop making great products, did innovation cease? No. What did happen was that while we were working, innovating, and producing better than ever, we were being undermined by unfair trade practices.”
“By deliberately undervaluing its currency, China gives its manufacturers a government subsidy upwards of 40%. When a Chinese company manufactures a product in China, exports it to the US, then brings dollars back to China, it is required to exchange those dollars for yuan. When the yuan is undervalued, that Chinese company receives more yuan for the dollar than it should. This is a direct financial contribution by the Chinese government because it overpays the exporter in yuan for each dollar it brings back to China. Add this to money lent at rock-bottom rates and reimbursement for interest paid, preferential access to domestic natural resources, and other trade-distorting benefits enjoyed by Chinese companies, and no American manufacturer – no matter how well-run its business, or pioneering its product, or efficient its workforce – can fairly compete.”
“Our currency reform bill will give US manufacturers hurt by currency manipulation a critical tool to level the competitive field. American manufacturers, who already operate at a competitive disadvantage to Chinese companies that pay their workers pittance and observe no workplace or environmental standards, will be able to seek redress for illegal trade practices. By giving them the tools to ensure other countries play fairly by the rules, the American manufacturer will win in the global marketplace every time. With our dedicated workforce and demonstrated ingenuity, American manufacturing has the chance to not just repair our economy, not just lead us out of debt and deficit, but create hundreds of thousands of new, well-paying, high-quality jobs.”
“There was a time when “Made in the USA” was the standard for the world. It wasn’t just a matter of pride to own a “Made in the USA” product, it was a matter of fact that you owned the best. We earned that esteem. And with the passage of the Ryan-Murphy bill, we’re on track to getting back to the top spot as the world’s greatest manufacturing economy.”
47 House Democrats Implore Pelosi to Stop Looming Tax Hike on Seniors
DREXEL HILL, PA – 47 House Democrats today signed a letter to House Speaker Nancy Pelosi calling for her to hold a vote to prevent the upcoming tax increase on dividends and capital gains. The letter includes signatures from Pennsylvania Democrats Kathleen Dahlkemper, Chris Carney and Jason Altmire.
“A dividends tax increase would impede our nation’s economic recovery by decreasing the amount of capital that companies would have access to, thereby slowing the private sector’s ability to grow and create jobs,” the letter said.
As the Democrats’ letter points out, “a recent study found that in 2007 over 27 million tax returns had dividends qualifying for the tax rate reduction. Of those returns, 61 percent were from taxpayers age 50 and older and 30 percent were from taxpayers age 65 and older.”
“Raising taxes on capital gains and dividends could discourage individuals and businesses from saving and investing. We urge you to maintain the current tax rate for both dividend and long-term capital gains taxes,” the letter concludes.
The letter comes less than two weeks after House Democrats authored a similar letter to Pelosi calling for her to hold a vote to extend all of the 2001/2003 tax cuts.
According to news outlets, Bryan Lentz opposes an extension of the tax cuts for all taxpayers. During the second debate between the 7th District candidates for Congress, Bryan Lentz “said tax cuts should be extended for the middle class, but he does not want to bring them back for citizens who make in excess of $250,000 a year” (Danielle Lynch, “Lentz, Meehan battle over ‘failed policies’”, The Delaware County Times, 8/27/10)
“While even some House Democrats are standing up to Nancy Pelosi and demanding a vote to prevent the dividends and capital gains tax increases on seniors, Bryan Lentz has again proven that he will serve as nothing but a rubber stamp for Pelosi’s tax-and-spend agenda,” said Bryan Kendro, Meehan for Congress campaign manager. “Seniors rely on dividends from investment holdings for income, but the tax policies of Lentz and Pelosi will take money out of seniors’ pockets at a time when many seniors are already struggling in this challenging economy.”
To help jumpstart the economy through consumer spending and investment, Pat Meehan has made the extension of the 2001/2003 tax cuts and a decrease in the capital gains tax rate central components of his Roadmap to Economic Recovery.
“The contrast between Pat Meehan and Bryan Lentz couldn’t be more stark,” Kendro continued. “Pat Meehan understands that now is the wrong time to raise taxes, while Bryan Lentz is more interested in rubber stamping Nancy Pelosi’s policies than preventing a tax hike on America’s seniors.”
House OKs Harper-Amended Marcellus Shale Bill; Ample Funding Directed to Key Environmental Programs
HARRISBURG – The state House has approved legislation imposing a tax on natural gas extraction in the Commonwealth, directing a substantial portion of the revenue to environmental programs, thanks to an amendment offered by Rep. Kate Harper (R-Montgomery).
“The growth of the drilling industry will have significant impacts on the Commonwealth both economically and environmentally,” Harper said. “While the new jobs are welcomed, I am pleased that a majority of the House also recognized the importance of investing in our environment to protect our clean air and clean water for future generations.”
In its original form, Senate Bill 1155 did not provide adequate funding for environmental protection and instead sent the vast majority of the tax revenue – a full 80 percent of it in the first year – back to the state’s General Fund. On the other hand, the state’s Environmental Stewardship Fund, also known as Growing Greener, was set to receive just 12 percent of the revenue.
Harper’s amendment, which passed on a 154-45 vote, cut the state’s General Fund share and upped the Environmental Stewardship Fund investment to 32 percent. If enacted, the fund would receive nearly $14.5 million this fiscal year and more than $80 million next year.
“Farmland and open space preservation, park and trail projects, and watershed protection and restoration are just a few of the initiatives that will benefit from this funding,” Harper said. “Communities across the state, including many here in Montgomery County, have benefitted from these programs in the past and will continue to do so with this additional investment.”
Senate Bill 1155 proposes a 39-cent tax per 1,000 cubic feet of natural gas. In addition to the state’s General Fund and the Environmental Stewardship Fund, revenue generated from the tax will also be distributed to a new Local Government Services Account to address infrastructure needs in communities where drilling is taking place, and to county conservation districts and a number of other state agencies related to drilling and its impacts.
“This bill is not perfect, but it’s much better with the addition of my language directing more of the proceeds to the Environmental Stewardship Fund,” Harper said. “I am hopeful that the Senate will address the problems and remember the environment when they take up the bill.”
Senate Bill 1155 was approved by a vote of 106-92 and now goes back to the Senate for consideration.
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