Congress Should Look For Ways to Reduce Spending in Current Economy
Allowing the Export-Import Bank to Expire is One Way to Cut Costs
(Washington, D.C.) – Although the federally-chartered Export-Import Bank is scheduled to expire on September 30th, the Senate may soon vote on a bill to reauthorize the agency. The Ex-Im Bank was created in 1934, and has provided taxpayer-subsidized, low-interest loans that enable large American exporters to sell more products to foreign buyers. The Congressional Budget Office (CBO) recently reported that the Export-Import Bank costs taxpayers billions under traditional accounting rules – approximately $27 billion in 2013. Under the complicated accounting rules used by the federal government however, the Ex-Im Bank supposedly generates savings, a rationale used by supporters to justify this spending.
With an annual federal deficit in the hundreds of billions of dollars, Members of Congress should consider all responsible ways to cut spending and curb the nation's growing debt. The total U.S. debt is now in excess of $17 trillion, and growing every day. Congress needs to carefully consider all spending for possible savings, and determine whether it makes sense to spend billions in taxpayer dollars on a program that many consider to be corporate welfare.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
"The Export-Import Bank funds loans that benefit many of this nation's largest and most successful companies – helping them expand their sales abroad. Is that an appropriate use of taxpayer dollars when the elimination of government waste and unnecessary spending is a priority? The United States continues to struggle to emerge from a lengthy economic slowdown. Congress must ensure that well-connected corporations and high-paid lobbyists aren't rewarded just for their connections and influence.
Allowing the Export-Import bank to expire is one way for Congress to save money and curb our annual deficits. America's small businesses and hard-working citizens don't have access to billions of dollars in federal funding to grow their enterprises. Congress needs to ensure proper use of taxpayer money – and not allow the well-connected, already profiting few to reap the benefits of a costly federal program."