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Inglis to file House Resolution that all TARP income be used for debt reduction

July 13, 2009

Office of U.S. Rep. Bob Inglis (R-SC)

Immediate Release: Monday, July 13, 2009

Contact: Price Atkinson

864.232.1141 or 864.494.8754

Inglis to file House Resolution that all TARP income be used for debt reduction

U.S. Rep. Bob Inglis (R-SC) intends to file a House Resolution later today stating that all Troubled Asset Relief Program (TARP) interest and dividends repaid to the federal government will be used solely to pay down the national debt in accordance with the law Congress passed last year when approving the Tarp funds (see attached PDF draft).

The resolution also calls for all appropriation of funds to follow Article I Section 9 of the Constitution that no money can be drawn from the Treasury except through the appropriations process.

“Apparently, we have to remind our colleagues in the majority to follow the law and the Constitution to stop them from continuing to spend the taxpayers’ money,” Inglis said.

Inglis expressed outrage last week when the Obama administration signaled a willingness to use dividend payments accrued from TARP repayment from banks to create new government programs for homeowners.

The Emergency Economic Stabilization Act of 2008 that appropriated the Troubled Asset Relief Program states that proceeds from the program and revenues from the sale of the assets shall be paid into the general fund of the Treasury for reduction of the public debt.

A proposal by U.S. Rep. Barney Frank (D-MA) would shift approximately $6.5 billion in TARP repayment funds to programs aimed at helping struggling homeowners and low-income renters, including the National Affordable Housing Trust Fund and the Neighborhood Stabilization Program.

“After running to the rescue to save the financial industry from collapse, I couldn’t think of a worse idea,” Inglis said. “This is a horrible idea that would take the repayment of borrowed TARP money and spend it again on a new program. This $6.5 billion belongs to taxpayers and must be used to repay the deficit where it was borrowed in the first place.

“Are these people insistent on redistributing wealth? I think maybe so,” Inglis sad. “They want to take money that should be going to all taxpayers to repay the debt and instead spend it on a few select groups they want to favor.”

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