February 5, 2009

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National Taxpayers Union Vote Alert

NTU urges all Senators to vote “NO” on the Ensign “Fix Housing First” amendment to H.R. 1, the so-called economic “stimulus” package.

Language to buy up and convert mortgages to a 4% rate would exacerbate the many problems of our bloated federal government by effectively nationalizing tens of millions of loans. This policy, which repeats and worsens the problems with the federal takeover of Fannie Mae and Freddie Mac, will pile enormous expenses on the backs of already-struggling taxpayers. Though other sections of the amendment would eliminate many wasteful spending items and provide permanent tax reductions for low-income Americans, the noxious housing provisions regrettably outweigh these worthy proposals. Senators should instead vote for “cleaner” amendments proposed by Senators DeMint, Vitter, Coburn, Thune and others to provide stand-alone tax relief and spending restraint.

Congress has already enacted too many policies that distort the market and help to cause the misallocation of capital that has brought our economy to its knees. Heaping on more preferences for housing while further expanding the role of the federal government will only make our problems worse over the long term. Washington should be divesting, not enshrining, its taxpayer-backed loan portfolio.

Roll call votes on the Ensign amendment to H.R. 1 will be heavily weighted in our annual Rating of Congress.

If you have any questions, please contact
NTU Government Affairs Manager Andrew Moylan at (703) 683-5700
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