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Friday, 26 September 2008 |
By MIKE BURKHOLDER
Managing Editor
WASHINGTON — An Ohio Republican says taxpayer dollars should not be used to bail out failing Wall Street executives and firms.
“Let's reward Main Street and not bail out Wall Street," U.S. Rep. Jim Jordan, R-Urbana, said during a teleconference with local media. "This is a serious time and this is an opportunity for us to address the real needs but to do it in a free-market oriented manner.”
Jordan chastised U.S. Treasury Secretary Henry Paulson and Federal Reserve Chair Ben Bernanke for requesting more than $700 billion to hand to failing Wall Street firms in what would be the largest bailout in U.S. history.
Instead, Jordan stressed the need to reduce the tax burden on business owner who could then purchase the failing securities and inject liquidity into the system.
"The initial proposal wasn't really a focus on market-oriented solutions," Jordan said. "It basically said to the taxpayer out there whose 401k had been hurt by the actions of former politicians and bankers on Wall Street that we want you to clean up this mess."
Jordan said any bailout proposal should include a provision to lower the capital gains tax.
By doing so, Jordan said more investors would be willing to spend money that could help sustain the market.
"Anytime you reduce the capital gains tax rates you reward those businesses who did it right," Jordan said. "They would be willing to take that risk and that's the way we need to go. People will then be more willing to risk purchasing some of these securities."
While members of the Bush Administration are pushing for swift action from Congress, Jordan said legislators should be hasty in their decision.
Jordan also said a bipartisan solution would be the best option to benefit the American people.
"Paulson and Bernanke are sharp people and they believe it's serious and I take them at their word," Jordan said. "We certainly should take it serious and I do believe the market needs to know there are some dollars coming into the system, but the way that's done is the question. You would like to be able to do what's best for the country and come together and make that
happen."
Jordan said he anticipates being in Washington, D.C. until a compromise is reached.
Despite the somber news, Jordan said he is confident the American economy can rebound from the recent turmoil.
"There is talk out there that they want to get it done this weekend," Jordan said.
"We will see how that plays out. I think we do have a serious situation here but we still have the strongest economy in history."
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Last Updated ( Thursday, 02 October 2008 )
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