Vt. delegation against economy rescue plan

Welch, Sanders offer suggestions
Written By Michelle Monroe
Tuesday, September 30, 2008

    Vermont Congressman Peter Welch, D, announced Monday that he voted against a bailout proposal which would have allowed the federal government to purchase faulty securities, particularly those backed by mortgages, from financial institutions and banks.
    “The Paulsen plan does not offer a path to a strong economic future. Quite simply, it is the biggest taxpayer bailout in American history. It proposes to solve a problem caused by reckless borrowing and reckless lending by borrowing $700 billion more,” Welch said in an official statement.

    Welch also criticized the lack of funding for the plan, which did not include a mechanism to pay for the bailout. “It is yet another expense put on the taxpayers’ credit card,” Welch said. “Just as President Bush told us his tax cuts for the wealthiest Americans would pay for themselves, and Secretary Rumsfeld told us the Iraqi oil revenues would pay for the Iraq war, now Secretary Paulsen is telling us he can sell toxic debt securities that Wall Street can’t.”

    Welch supported paying for the plan by putting in place a small tax on stock and securities trades, something already in place in other countries.

    Vermont’s senators joined Welch in opposing the bill. Sen. Bernie Sanders, I-Vt., has proposed a five-year surtax on individuals who make more than $500,000 per year and couples earning more than one million to help pay for the bailout.

    In a formal statement, Sanders cited widespread opposition to the bailout. “I have received hundreds of calls and more than 2,000 e-mails from Vermonters, almost all of them against this plan,” Sanders said.  “More than 46,000 people all over the country have joined me in signing a letter to Treasury Secretary Paulson opposing any bailout paid for by the middle class.”

    Sen. Patrick Leahy, D-Vt., called popular opposition to the bailout a sign of the public’s lack of trust in the current administration. “An administration that squandered record surpluses and turned them into record deficits and debt does not have much credibility left,” Leahy said in a statement. “Apparently even many in the president’s own party have now come to agree with those of us who have long felt that ‘trust me’ is not enough when this White House asks for sweeping new powers.”

    Leahy said Congress must remain in session until a solution is found.

    The initial bailout proposal called for the Secretary of the Treasury to be allowed to distribute $700 billion in funds without any legislative or judicial oversight.

    Welch praised efforts by leaders within the Democratic party to introduce some accountability into the proposal. However, Welch said, “It is still a bad plan. I cannot in good conscience vote for a fundamentally flawed plan that puts so much financial risk on the backs of the already stretched middle class.

    “Resolving our economic problems will take more than a quick-fix, taxpayer funded bailout,” Welch said. “It will take a return to the core truth Vermonters know: our economic policies must focus on building and preserving our middle class.  We must reward work and entrepreneurship, not speculation, market manipulation and corporate self dealing.”