GOVERNMENT AFFAIRS ARCHIVE

Manzullo: "This is Not the Health Care Reform Americans Deserve"
Congressman to Oppose Job-Killing Bill, Support Effective Alternatives

WASHINGTON – Congressman Don Manzullo today said the President’s $1 Trillion health care bill is a job-killing disaster that will slap Americans with massive tax increases and Medicare cuts immediately while delaying the bulk of the health care benefits until 2014. He will vote against the bill if it comes up for a vote today and support bipartisan alternatives that would make health care more affordable and accessible to the uninsured without having to wait 4 years for benefits. 

Manzullo said the President’s bill is a massive government takeover of health care that would:

• Increase taxes on Americans by $569 billion.
• Cut Medicare benefits for seniors by $530 billion.
• Increase Americans’ health insurance premiums $2,100 by 2014, according to the non-partisan Congressional Budget Office.
• Put another 3 to 5 million Americans on the unemployment lines due to the heavy mandates that require employers to provide health care coverage to their employees and families whether they can afford it or not.
• Require the IRS to hire up to 16,500 additional workers to enforce all the new tax penalties on Americans who can’t afford to purchase health insurance.
• Make Americans wait until 2014 to receive the bulk of the benefits. In fact, the ban on pre-existing conditions doesn’t kick in until 2014 for adults.
• Put another 15 million Americans on Medicaid, a struggling program that pays such low reimbursement rates that 121 Walgreens stores in Washington announced last week they would no longer accept Medicaid for prescriptions.
• Burden states with additional Medicaid share costs. The State of Illinois, already facing a $12 billion budget deficit with plans to cut $1.3 billion from local school funding, would have to pay $1.8 billion in additional Medicaid sharing costs to cover the additional enrollments.
• Create a new 2.9 percent tax on life-saving medical devices.

“This bill is a disaster that will increase taxes, cut Medicare, raise health care premiums, and put millions more Americans on the unemployment lines. And amazingly, most of the benefits – including the ban on pre-existing conditions for adults – won’t be available for another 4 years,” Manzullo said. “This bill is a hoax on the American people, and is certainly not the type of health care reform Americans deserve. We should instead be pursuing the bipartisan reforms that would make health care more affordable and accessible to Americans, and not make them wait 4 years for assistance.”

The former Chairman of the House Small Business Committee, Manzullo has long supported legislation that would help small employers purchase health insurance for their employees and their families. Of the 47 million uninsured Americans, 57 percent work for small employers who cant afford to offer them health insurance. The following two bills would go a long way to reduce the number of uninsured in America:

• HR 2360, the Small Business Health Options Program Act of 2009 (SHOP Act), would allow small employers to purchase health insurance at reduced group rates through national associations while still following state rules. Manzullo is one of 60 bipartisan cosponsors of HR 2360, which also enjoys support from the liberal Service Employees International Union (SEIU), AARP, and the conservative National Federation of Independent Business (NFIB). A companion bill in the Senate was authored by U.S. Sen. Dick Durbin (D-IL) and enjoys similar bipartisan support.
• HR 1470, the Equity for Our Nation’s Self-Employed Act of 2009, would let small employers deduct their health insurance costs from their Social Security and Medicare tax liabilities, giving them the same deduction as large employers. The self-employed pay on average $12,106 annually for family health care coverage, and H.R. 1470 would save them $1,852 a year, according to the Kaiser Foundation. Manzullo is one of 48 bipartisan co-sponsors of HR 1470.

“These bills would dramatically reduce the costs of health insurance for small employers so they can better afford to provide coverage for their employees and their families. And they will reduce the rolls of the uninsured without increasing taxes, killing jobs, forcing Americans into a government-run program, and burdening our children and grandchildren with even more debt,” Manzullo added.

Manzullo also supports the following additional changes to America’s health care system:

1. Reforming our out-of-control medical liability system – Medical malpractice insurance continues to surge, skyrocketing health care costs and forcing doctors and other medical professionals to practice “defensive medicine,” which entails ordering costly and often unnecessary tests to cover all the bases from lawsuits. Manzullo is a cosponsor of the HEALTH Act (H.R. 1086) that would fully compensate victims for medical injuries but place reasonable caps on punitive and non-economic damages that often inflate the awards and contribute to out-of-control liability and health care costs.
2. Expanding tax-free availability to Health Savings Accounts -- HSAs allow small business owners to offer more affordable high-deductible health insurance plans to their employees and make tax-deductible contributions to employee savings accounts to allow their employees to build equity and assume personal control of their health care needs. Congress should increase the tax deductibility for these insurance plans.
3. Preserving high-quality health care through America’s community health clinics – Manzullo supports continued funding of our community health clinic system, which provides high-quality health care to America’s low-income families. Manzullo has been a strong supporter of Rockford’s Crusader Clinic, which serves more than 40,000 needy patients in northern Illinois each year.
4. Creating refundable tax credits to help low-income Americans purchase health insurance – Low-income children are already covered through the federal SCHIP program, and Manzullo supports refundable tax credits to help low-income adults purchase health insurance.

A Message From Illinois State Representative Michael W. Tryon  |  District 64 March 19, 2010

Dear friends, With an unprecedented budget deficit of $13 billion facing Illinois, it’s no secret that things need to change in Springfield. The wrong solution is to propose a tax increase. Gov. Quinn’s proposal would increase the income tax by 33 percent and would result in an, on average, a $1,000 tax increase per household. To saddle the families of Illinois with an even greater tax burden, when many are struggling to make ends-meet, would be irresponsible. The fact is, this crisis was created by years of irresponsible spending and complete financial incompetence. If we are serious about addressing the deficit, and erasing the mistakes of the past 10 years, we must immediately enact a number of responsible, reasonable budget cuts and reforms. For example, I have proposed legislation called the Truth in Accounting Act of 2010 which will move Illinois to full accrual accounting standards. This will put everyone involved in the budget process on the same page by offering a real look at the fiscal condition of the state. I’m also supporting efforts to reform the Medicaid system which will result in more than $2 billion in savings to the state. Under Gov. Rod Blagojevich, Medicaid spending alone increased by almost 50 percent, from $9.5 billion to $14 billion, in only four years. We need to repeal some of those expansions, and include other reforms, such as residency requirements and a renewal process for Medicaid recipients. Unfortunately, for reasons that I cannot understand, House Speaker Mike Madigan has refused to allow these bills and others like them, to be heard for a vote. These are common sense, bipartisan approaches to reforming state government. I urge you to contact both Gov. Pat Quinn and Speaker Mike Madigan to ask them to support responsible budget cuts and reforms to reduce the deficit and move our state forward. Governor Pat Quinn                Speaker Mike Madigan     207 State House                     300 State House Springfield, IL 62706              Springfield, IL 62706 (217) 782-0244                     (217) 782-5350 Looking for Volunteers Groups and individuals throughout the state are already feeling the affects of the state’s budget crisis, and many have contacted my office directly to ask for help. It is our hope to respond to these questions and requests as quickly as possible. To help us accomplish this we are looking for volunteers to help us work through all the correspondence we have received.   If you are interested in helping or know someone who is, such as a high school or college student looking for an internship, please contact my office at mike@miketryon.com or 815.459.6453. As always, do not hesitate to contact me with any questions or concerns regarding state issues.  It is an honor to serve you in Springfield. Sincerely, Michael Tryon State Representative – 64th District

A Message From Illinois State Representative Michael W. Tryon  |  District 64 March 3, 2010

Dear friend, The spring legislative session has begun in earnest, and already hundreds of bills have been introduced for consideration by the legislature. Last month, the House of Representatives approved a bill that I sponsored which will require legislative input and consent on certain property transactions by the state. The legislation, House Bill 4744, would require the State to receive approval from the General Assembly prior to selling any piece of surplus property that is worth more than $1 million. This is a change from current law which states that if a piece of property is “surplus” property, then the State can sell it immediately after appraisal and without any requirement for the consent of the General Assembly. I strongly believe that properties worth more than $1 million, like the Thomson Correction Center, should not be sold in the dead of night by administrative procedure, but in the light of day with legislative approval. Other state legislatures are required to approve similar transactions in their respective states, and there’s no reason it should be any different in Illinois. It is my hope that my colleagues in the Senate will also approve this bill to provide safeguards to the rightful owners of state property in Illinois, the taxpayers. Truth in Accounting Weighing heavy on the minds of legislators, as well as residents throughout the state, is the financial crisis facing Illinois.  With a $13 billion budget deficit, service providers, state contractors and even local schools are already making drastic cuts and in some cases closing their doors due to the state’s inability to pay its bills on time and in full. To help shed light on the state budget, and improve the state budget process, I’ve introduced the Truth in Accounting Act of 2010. This bill, House Bill 5212, is the culmination of work between me, the Institute for Truth in Accounting and the Americans for Prosperity. Among other things, the legislation would: Require all state government agencies to switch to full accrual accounting standards as promulgated by the Governmental Accounting Standards Board (GASB); Prohibit the General Assembly from approving any appropriations bill during a fiscal year until both houses of the General Assembly have adopted a joint resolution scrutinizing, accepting, and if necessary amending the budget estimates generated by the Commission on Government Forecasting and Accountability (COGFA);  Require the electronic publication of all appropriation bills;  Requires the Comptroller to publish a Consolidated Annual Financial Report (CAFR), prepared in accordance with the principles of full accrual accounting, no more than 90 days after the end of each fiscal year. This report must explain any differences that exist between the estimates accepted by the General Assembly prior to the fiscal year, and the actual outcomes achieved by the State during that fiscal year. If we truly want to reign in spending, put an end to borrow-and-spend budgeting, and address the massive debt facing this state, we must reform the budget process through accountability and transparency. This legislation will put everyone involved in the process on the same page by offering a real look at the fiscal condition of the state annually and allow the legislature to focus on long-term, responsible budgeting, instead of the ineffective, piecemeal approach that it currently takes. As always, do not hesitate to contact me with any questions or concerns regarding state issues.  It is an honor to serve you in Springfield. Sincerely, Michael Tryon State Representative – 64th District

Manzullo: 3 Million More Americans Out of Work on 
1st Anniversary of Failed $862 Billion Stimulus Bill
 
[WASHINGTON] Congressman Don Manzullo (R-Egan) today said the $862 billion stimulus bill he opposed a year ago has failed miserably in its primary objective – to create jobs for Americans. Instead, Congress and the President should focus on helping the private sector put Americans back to work.

When the stimulus bill was enacted one year ago today, the Administration claimed it would create 3.5 to 4 million jobs. In reality, another 3 million Americans lost their jobs since then. In addition, America’s unemployment rate rose from 7.6 to 9.7 percent since that time.

The big problem is that less than 5 percent of the bill was for job-creating infrastructure spending. The vast majority was spent on expanding and creating new social programs that are not heavy private sector job creators. And because of the record spending, the budget deficit has surged past $1.4 trillion and our national debt is beyond $12 trillion. In fact, the fastest growing part of the President’s just-released budget is interest on the national debt, which is estimated to be more than $800 billion annually by 2020.

Instead of continuing the out-of-control government spending that doesn’t create jobs, Manzullo has offered a plan to help the private sector expand and put Americans back to work. If more Americans work in the private sector, they would pay the taxes necessary to sustain public sector jobs. Manzullo’s American Jobs Agenda focuses on helping employers cut costs, become more competitive, and create jobs through tax incentives, lower health care and energy costs, leveling the international playing field, and helping employers export more overseas and sell more to the government.

“From the beginning, we knew the $862 billion stimulus would fail its primary purpose to put Americans back to work because so little of it was focused on private sector job-creation. In fact, we have lost 3 million more jobs since it was enacted a year ago,” Manzullo said. “Government can’t create self-sustaining jobs. We need to focus on helping the private sector become more competitive so they can expand and put Americans back to work. One answer is my American Jobs Agenda, which gives our employers tax incentives, cuts health care and energy costs, levels the international playing field, and helps our employers export more and sell more to the government.”

Manzullo Supports Alternative GOP Bill that Will Reduce
Health Care Costs for Americans, Cut Deficit $68 Billion

Congressman Opposes Pelosi's Gov't Takeover of Health Care

[WASHINGTON] Congressman Don Manzullo (R-IL) will vote later tonight against Speaker Pelosi’s $1.3 trillion job-killing government takeover of health care and instead support the Republican alternative bill that cuts health care costs and insures more Americans without cutting jobs, raising taxes, and threatening the health insurance of millions of Americans. He issued the following statement:

“I will vote for the 230-page Republican alternative to the massive 2,032 page Democrat bill.  Our alternative is a common sense approach directly aimed at the problems Americans face with health care insurance.  Our bill provides tools for small businesses to pool together, like corporations and labor unions, to form massive purchasing pools (Association Health Plans) to help lower the cost and availability of health insurance to Americans, including those with pre-existing illnesses. State high risk pools are enhanced so that those with pre existing illness have an additional source for insurance. Our bill restores common sense to the legal system with meaningful health liability reform to help lower insurance premiums for doctors, cut health care costs for Americans, and reduce the federal budget deficit by $54 billion, according to the nonpartisan Congressional Budget Office (CBO). When Republicans controlled the House, we passed Association Health Plans and medical liability reform, but both died in the Senate where 60 out of 100 votes are needed. Our bill also provides options for young adults to stay on their parents’ plans, and eliminates yearly or lifetime caps on insurance payments.

“Best of all, the Republican plan, according to the CBO, will save$68 billion,  and reduce health care costs and  insurance premiums by up to 10%, while the Pelosi-Democrat bill will cost $1.3 trillion and increase insurance premiums, as stated by the CBO and the Joint Committee on Taxation.

“I could not in good conscience vote for the Pelosi-Democrat health care bill, which increases taxes by $766 billion, taken from badly needed capital for operations and loans for small businesses, and from taxes on medical equipment.  It also cuts $500 billion from Medicare, which will hurt seniors. The Democrat bill creates 111 new bureaucracies, commissions, agencies, or offices, which will require the hiring of thousands of new bureaucrats, and dramatically hikes Medicaid expenses for states, already behind on meeting existing Medicaid cost.  Americans will lose their choice of coverage by eventually being forced into a government run insurance scheme. And unbelievably, the Democrat bill not only contains no medical liability reform, but it actually incentivizes states to repeal their existing medical liability laws in exchange for money!”

As American Job Losses Continue to Rise, Manzullo Echoes 
U.S. Commerce Secretary's Call for Export Control Reform

[WASHINGTON] Congressman Don Manzullo (R-IL) today said America’s antiquated export control system continues to prevent U.S. companies from selling non-threatening goods overseas and is in critical need of reform, especially considering another 263,000 Americans lost their jobs last month and unemployment rose to 9.8 percent.

Manzullo, co-founder of the House Export Control Working Group, thanked U.S. Commerce Department Secretary Gary Locke for his proposal to fix two key export control problems that hamper American manufacturing and job growth. Locke offered his reforms yesterday during the Bureau of Industry and Security (BIS) Update Conference on Export Controls.

Secretary Locke proposed yesterday that the Commerce Department, in cooperation with other appropriate federal agencies, pursue two reforms that will provide substantial and immediate relief to U.S. exporters while strengthening U.S. national security and foreign policy interests: eliminating dual-use export license requirements for our closest allies and partner nations; and implementing a fast-track procedure for the review of dual-use export licenses for other key allies.

“American manufacturing workers takes a hit every time a U.S. company loses a sale to a foreign company when the customer chooses to avoid dealing with our unwieldy export control licensing system. Even worse, we’ve seen too many examples of U.S. technologies actively designed out of foreign and multi-national projects,” Manzullo said. “I wholeheartedly support Secretary Locke’s efforts, and I appreciate his emphasis on reform in conjunction with enforcement efforts. I will continue to work in a bipartisan fashion with my colleagues in Congress and our partners in the Administration to answer the President’s recent call for a broad-based interagency review of the U.S. export control system.”

A copy of the Secretary’s speech can be found here.

Manzullo: New Finance Bureaucracy Would Give "Blank Check" to Continue Wall Street Bailouts, Economists Say

[WASHINGTON] Congressman Don Manzullo (R-IL) today learned some alarming information during a Financial Services Committee hearing this morning when he questioned two economists about proposed legislation to create an extra bureaucracy to oversee the U.S. financial sector – it would actually create a “blank check” for future Wall Street bailouts.

During Thursday’s hearing on the Administration’s proposed Consumer Financial Protection Agency, Manzullo questioned two esteemed economists on the panel: Jeffrey Miron, Director of Undergraduate Studies at the Harvard Department of Economics, and John Cochrane, Professor of Finance at the University of Chicago Booth School of Business. Both expressed grave concerns during the hearing, which you can see here.

Manzullo: Congress Should Expand "Cash for Clunkers" Program to Allow Vouchers for All Vehicle Purchases

[ROCKFORD]  U.S. Rep. Don Manzullo (R-IL) today said the federal government should dramatically expand the popular “cash for clunkers” program by removing all conditions and giving vouchers to all Americans who buy a new vehicle. Such a program would energize our economy, re-start the auto manufacturing supply chain, and put Americans back to work, he said.

Manzullo voted Friday to shift an additional $2 billion in previously-approved federal funds to the original cash for clunkers program, which was frozen late Thursday after officials realized the original $1 billion appropriated for the program was exhausted after just a week in operation (it was scheduled to run until Nov. 1). The original program gives prospective car buyers up to a $4,500 voucher for trading in a gas guzzler (18 mpg or less) in exchange for a more fuel-efficient vehicle. According to the Alliance of Automobile Manufacturers, the initial $1 billion cost of the cash for clunkers program generated $5.5 billion in economic activity, including substantial tax revenue for state and local governments.

While he supported the $2 billion extension of the program Friday, Manzullo supports a much more generous vehicle voucher program focused on bolstering manufacturing in America, ending the recession, and putting Americans back to work. Manzullo introduced legislation earlier this year to give Americans a $5,000 voucher to purchase a new vehicle, no strings attached. The New Automobile Voucher Act of 2009 (HR 1606) would have provided a one-time, $5,000 electronic voucher from the U.S. Treasury at the point of sale of a new vehicle through the end of 2009. It would have provided vouchers for 15 million new vehicles (original cash for clunkers bill covered 250,000 new vehicles).

Every one million in new vehicle sales has the following impact on the economy:

• Creates 60,000 jobs (10,000 at vehicle assembly plants; 50,000 at suppliers, auto dealers, and other businesses).
• Provides $750 million in tax revenue to the federal government.
• Provides $1.4 billion in sales tax revenue to states.
• Saves federal government $1.4 billion in unemployment payments, food stamps, job retraining and COBRA health subsidies.

“The huge interest in the cash for clunkers bill shows vehicle incentive programs would go a long way to strengthen our economy and put Americans back to work. But the program needs to be expanded to include all vehicles,” Manzullo said. “My bill would have revived automobile manufacturing and sales, putting millions of Americans back to work and restoring the tax revenues our state and local governments need to continue providing services to the people.”

The automobile industry and its suppliers account for 13 million American jobs, 20 percent of all U.S. retail sales, and billions of dollars in state and local sales taxes. The drop in U.S. vehicle sales from 16 million in 2007 to 13 million in 2008 to a projected 9 million in 2009 has been one of the leading causes of America’s economic downturn and huge job losses.

Manzullo to Vote Against Job-Killing Cap
and Tax Bill, Support Pro-Energy Alternative

[WASHINGTON] Congressman Don Manzullo (R-IL) will vote against the job-killing cap and tax bill when it comes to the House floor today because it will give foreign companies a huge competitive advantage over American manufacturers, putting 2.5 million more Americans out of work without ensuring a cleaner environment for future generations.

The legislation puts severe limits on energy usage in the United States and could double or triple energy costs for most American manufacturers, putting them at a huge disadvantage with their competitors from China, India and other foreign countries not required to comply with such limits. A study by the National Black Chamber of Commerce estimates the bill would devastate U.S. manufacturers, causing many to go overseas to avoid the energy taxes and putting 2.5 million Americans out of work by 2030.

Manzullo attempted to amend the bill to eliminate the International Climate Change Adaptation Program, which would give companies in China, India and other “developing nations” up to 4 percent of the overall allowable carbon credits, taking them away from U.S. manufacturers and forcing American companies to essentially pay for the continued pollution of their primary competitors in China and India. Democrat House leaders would not even allow Manzullo’s amendment to come to the floor for a vote.

In addition, the energy caps will cause the price of American-made products to surge along with the utility bills of American families. President Obama himself – while on the campaign trail last year – said his cap and trade bill would cause electricity rates to “necessarily skyrocket.”

“At a time when unemployment is over 10 percent in northern Illinois and many employers are struggling to survive, this misguided cap and tax bill will put millions more Americans out of work and surge utility costs for all Americans. And amazingly, it will not ensure a cleaner environment for future generations because the biggest polluters in the world – China and India – have indicated their desire to keep the pedal to the floor and continue polluting at will,” Manzullo said “Some scientists even say that if we completely eliminated all carbon emissions from the United States tomorrow, China and India would replace all of it in the atmosphere within 10 years. This is mind-boggling.”

Manzullo supports alternative legislation that promotes innovation, conservation, and responsible production of energy as a way to achieve America’s energy independence and a cleaner, healthier planet.

The American Energy Innovation Act represents a fiscally responsible approach to reducing our dependence on foreign energy, providing a cleaner environment, and putting Americans to work by:

• Encouraging innovation within the energy market to create the renewable fuel options and energy careers of tomorrow.
• Promoting greater conservation and efficiency by providing incentives for easing energy demand and creating a cleaner, more sustainable environment.

Increasing the production of American energy by responsibly utilizing all available resources and technologies and streamlining burdensome regulations.

Manzullo Cosponsors Bill to Reverse Forced Closures of GM and Chrysler Dealers, Save Thousands of American Jobs

[WASHINGTON]  As the deadline nears for Chrysler and GM to strip thousands of auto dealers of their franchises and put tens of thousands of Americans on the unemployment lines, U.S. Rep. Don Manzullo (R-IL) has cosponsored a bill that would reinstate the franchise agreements for those dealers that would like to stay in business.

The legislation, “The Automobile Dealer Economic Restoration Act (HR 2743),” was introduced late Monday and would restore the economic rights GM and Chrysler dealers enjoyed before the auto manufacturers’ bankruptcies. Because the forced closures of more than 2,000 Chrysler and GM dealers will not save the manufacturers significant amounts of money, reinstatement of the franchises will not affect their planned emergence from bankruptcies. The forced closures of the dealers was agreed to by GM, Chrysler and the President’s auto task force prior to bankruptcies as part of the Administration’s decision to fund the automakers’ debts with more than $60 billion in taxpayer funds.

“The misguided decision of GM, Chrysler and the President’s auto task force to close more than 2,000 dealerships in the United States will do nothing to improve the finances of the automakers because the dealers pay their own costs and actually purchase cars from the automakers. Many of these dealers represent several generations of hard-working small business owners who have given so much to their employees and their communities over decades of service only to be stripped of their franchises and forced to shutter their businesses in a matter of weeks,” Manzullo said. “This legislation will bring some common sense back to the industry and restore the franchise agreements to the dealers who want to keep operating without threatening the plans for both GM and Chrysler to emerge stronger from their bankruptcies.”

Manzullo, who has been working with several local auto dealers scheduled for closure, sent previous letters to the President and the automakers seeking a reconsideration of the forced closures as well as a delay and more transparency in their decisions. Many of the dealers slated for closure are profitable and have no idea why they are targeted for closure.

In addition, Manzullo will vote later today for a “cash for clunkers” bill that will bolster auto manufacturing and sales by providing vouchers up to $4,500 to anyone who trades in a vehicle made after 1984 that gets less than 18 mpg and purchases a new vehicle, costing less than $45,000, that gets at least 4 mpg more. The legislation is expected to bolster auto sales by 1 million vehicles.

Manzullo authored alternative legislation (HR 1606) that would have provided a $5,000 voucher to anyone who purchases a vehicle – no strings attached – that would have covered the sale of 15 million new cars. While the “cash for clunkers” bill will not have nearly the boost to auto manufacturing and sales as Manzullo’s bill, Manzullo still supports the cash for clunkers bill because it will help the industry. He will continue to push for his bill that would have a much greater impact on American manufacturing.

Every one million in new vehicle sales has the following impact on the economy:

·        Creates 60,000 jobs (10,000 at vehicle assembly plants; 50,000 at suppliers, auto dealers, and other businesses).

·        Provides $750 million in tax revenue to the federal government.

·        Provides $1.4 billion in sales tax revenue to states.

·        Saves federal government over $1.8 billion in unemployment payments, COBRA health care subsidies, job retraining assistance, and food stamps.

The automobile industry and its suppliers account for 13 million American jobs, 20 percent of all U.S. retail sales, and billions of dollars in state and local sales taxes. The drop in U.S. vehicle sales from 16 million in 2007 to 13 million in 2008 to a projected 9 million in 2009 has been one of the leading causes of America’s economic downturn and huge job losses.

Short-Term Solutions Won't Fix State's Budget Crisis

Neither tax and fee increases nor budget cuts alone will solve Illinois' economic crisis. Over the last several months we have heard Illinois politicians talk about how to solve Illinois' budget deficit. The Governor wrongly takes the short-term approach by proposing to increase taxes by over $2 billion on Illinois families and another $2 billion dollars on Illinois employers. Some argue that we can cut our way out of this.

The systemic solution to our economic crisis should include revenue increases through natural growth and spending reduction. The biggest failure to date is to realize that Illinois must refocus on job creation, with the higher quality of life and the additional state revenues those jobs will mean for Illinois and our families.

Over the last six years, Illinois has become an out-migration state meaning we have suffered the net effect of more people moving out of Illinois than moving in. Any business knows that in order to improve you must focus on growth. Illinois, in spite of our great natural and man-made resources, our geographical center, and our people, has failed to make the case for business investment, costing our citizens over 700,000 jobs and more than $3 billion in revenue to the state each year.

Why?

Because we are a risky high cost-of-doing business state that has let our assets deteriorate. Risky because of the plaguing corruption that businesses fear will extort them. We must end play to play and provide our citizens with absolute transparency.

High cost because we tax, fee, and regulate business at levels that carry a higher cost than our surrounding states. Our taxes and fees speak for themselves. But the cost of workers compensation, shifting health care, and bureaucratic delays are counterproductive and additional disincentives for Illinois employers in Illinois.

Deteriorating, yes. Our roads, bridges, and water right-of-ways are a great resource, but our failure to maintain them makes it expensive to transport goods and services. Unfortunately the newly passed capital plan again focused on tax and fee increases that make our state even more expensive and less appealing to business and individuals.

To solve our economic climate we must resolve ourselves to making Illinois a low cost- of-doing-business state, reducing taxes, fees, and bureaucratic delays so employers can create more good jobs for Illinois workers and a higher quality of life for their families. Our budget must be balanced but not with the policies of pushing more jobs to neighboring states. Our short-term solutions include temporary reduction in spending, backed with long-term reforms that eliminate our expensive taxes, fees and bureaucratic delays.

We must build a new Illinois and we would be better off starting today.

Bill Brady

Manzullo Seeks Federal Funds for Major
Road, Rail Projects in McHenry County

[WASHINGTON] Congressman Don Manzullo (R-IL) today requested significant federal funding for priority road and rail projects in McHenry County as part of the next long-range surface transportation funding bill Congress will consider later this year.

Requested projects include:

·        Randall Road widening project – The $115 million project calls for widening Randall Road for 3.5 miles and improving the intersections from the McHenry/Kane county line north to Ackman Road. Federal funds would help cover the Phase I and Phase II engineering phases, including land acquisition for the project. Construction is scheduled to begin in 2014.

·        Passenger Rail from Chicago through McHenry County to Dubuque, IA – This $185 million project involves extending passenger rail along the Union Pacific tracks from the Elgin Big Timber station through Huntley, Marengo, Belvidere, Rockford, Freeport, Galena to Dubuque, IA. Federal funding could be used for engineering, right-of-way acquisition, construction and rehabilitation of the Union Pacific rail corridor to allow for extended commuter rail service to Rockford and the return of Amtrak service to northern Illinois. Working with U.S. Senator Dick Durbin (D-IL), Manzullo secured $2.4 million in the last federal road bill to help fund the initial studies for the rail extension.

“Randall Road is traveled daily by tens of thousands of McHenry County motorists and is in need of widening to reduce traffic congestion and improve safety. Extended passenger rail through Huntley and Marengo would provide needed transportation alternatives to driving for McHenry County residents,” Manzullo said. “These federal funds would go a long way to reduce traffic congestion, improve safety, and clean the environment in McHenry County.”

Manzullo has secured significant federal funding for the Western Bypass of Algonquin ($19 million), the Rakow Road widening project in Crystal Lake and Lake in the Hills ($6.4 million), and the Route 47 widening project through Huntley ($6.7 million). In addition, he worked with Senators Durbin and Obama (D-IL) and the entire Illinois Congressional Delegation to secure an additional $6.2 billion in federal road funds in 2005 for the State of Illinois, a record 30 percent increase from the prior bill.

Manzullo & Michaud: House Patent Bill
Would Harm U.S. Manufacturers, Inventors

[WASHINGTON]  U.S. Reps. Mike Michaud (D-ME) and Don Manzullo (R-IL), members of the House Manufacturing Caucus, expressed serious concerns with the House patent legislation, H.R. 1260, in written testimonies presented to Chairman Conyers during a House Judiciary Committee hearing on the bill today. 

Manzullo and Michaud said significant improvements were needed to both the damages and post grant review provisions of the House bill.  They further suggest that the Senate Judiciary Committee language on damages is a constructive compromise, and offered ideas to fix the post grant provisions so that American innovators are not trapped in an endless loop of challenges to their intellectual property.

As members of the Congressional Manufacturing Caucus, Reps. Michaud and Manzullo are particularly sensitive to how changes in patent law could negatively impact U.S. manufacturers, leaving those companies with fewer resources for hiring workers and investing in research and development. U.S. manufacturers face intense and myriad competitive pressures in the global market, but America has maintained a competitive advantage in intellectual property by having the strongest patent protections and the highest penalties for infringement.

“The legislation the committee is considering today has stark consequences for companies that rely on innovation for a competitive edge,” Manzullo said. “At a time when America’s innovators, manufacturers and laborers need strong patent protection to compete internationally, the net effect of the bill will be to weaken patent protection by making patents less reliable, easier to challenge and cheaper to infringe.” 

“During this economic downturn, it is critical we pass a patent bill that protects our manufacturing base,” Michaud said.  “The House legislation being considered today could result in the migration of hundreds of thousands of high skill, high paying manufacturing jobs overseas.  I sincerely hope we can work with the committee to strengthen the bill.”

After careful analysis of H.R. 1260, Michaud and Manzullo recommend that the House adopt the Senate Judiciary Committee compromises that resolved controversial differences on damages and prior art. Regarding post grant review, they also encouraged the Committee to include:

• an appropriate threshold for initiating administrative proceedings,
• a presumption of validity in those proceedings so the challenger has the burden of establishing invalidity rather than requiring a patent holder to re-establish the validity already verified in the application process,
• strong estoppel provisions to avoid serial challenges of the same patent by the same infringer or a group of infringers, and
• a clear time-line for concluding administrative challenges. 

Without these changes, Michaud and Manzullo said, “the patent reform bill will increase the length of patent pendency, reduce patent certainty and undermine U.S. innovation and job creation.”

Michael W. Tryon
Illinois State Representative
64th District

Manzullo's Vehicle Voucher Bill Best Way to Fix
U.S. Auto Industry, Put Americans Back to Work

[WASHINGTON]  As President Obama announced another government intervention in the U.S. auto industry today, U.S. Rep. Don Manzullo (R-IL) reiterated the best way to strengthen the industry is to give Americans incentives to buy cars and trucks again.

Manzullo introduced legislation earlier this month to give Americans a $5,000 voucher to purchase a new vehicle, stimulating auto sales and manufacturing, re-starting the supply chains, and putting millions of Americans back to work. The New Automobile Voucher Act of 2009 (HR 1606) would provide a one-time, $5,000 electronic voucher from the U.S. Treasury at the point of sale of a new vehicle through the end of 2009.

“Americans are concerned with the economy and have dramatically scaled back new vehicle purchases. We will continue to have bailout after bailout until we can get people to start buying cars and trucks again,” Manzullo said. “My bill will give Americans the incentives and the confidence they need to start buying vehicles again, which will bolster automobile manufacturing and sales, put millions of Americans back to work, and restore the tax revenues our state and local government need to continue providing services to the people.”

The automobile industry and its suppliers account for 13 million American jobs, 20 percent of all U.S. retail sales, and billions of dollars in state and local sales taxes. The drop in U.S. vehicle sales from 16 million in 2007 to 13 million in 2008 to a projected 8 million in 2009 has been one of the leading causes of America’s economic downturn and huge job losses.

Manzullo: Taxpayers Need Answers on AIG Bonuses

[WASHINGTON]  Congressman Don Manzullo (R-IL) is participating today in a major Congressional hearing investigating why AIG, a recipient of billions of dollars of taxpayer bailout funds, awarded its executives with $165 million in bonuses last week.

Manzullo delivered the attached statement this morning during a hearing of the House Financial Services Subcommittee on Capital Markets, Insurance and Government-Sponsored Enterprises, of which Manzullo is a member. Manzullo is planning to question AIG CEO Edward Liddy when he testifies later today, which will be carried live on most of the cable news networks and will be streamed live on the committee's website. Manzullo’s opening statement can also be seen on his YouTube channel.    

OPENING STATEMENT OF CONGRESSMAN DON MANZULLO (R-IL)

“I questioned Neel Kashkari about TARP on December 10th and asked him if he was going to ask for a $3 million dollar bonus back from one individual. He said, it could be deferred compensation and ostensibly not returnable.  Deferred compensation for what?

I represent Rockford, Illinois, the largest city with 14% unemployment. People are losing their jobs, factories are closing. They’re taking cutbacks, working odd shifts, and taking late night shifts. They aren’t being paid to destroy the economy—they’re being paid to invigorate it.

They’re sitting in this seat today, all 740,000 of them, wondering, how could government do something so stupid as to allow these people to make that kind of money and then sit back and everybody point fingers at each other?

We want some answers today.”

Manzullo Enhances Online Communications with
Residents Through YouTube, Facebook and Twitter

[WASHINGTON]  Congressman Don Manzullo (R-Egan) is utilizing social media on the Internet to enhance his online communications with northern Illinois residents and inform them of important updates in real time.

Manzullo’s YouTube page has become extremely popular since its launch last fall, amassing more than 713,000 views to date and moving him into 17th Place for all-time views on the Politician Channel (just ahead of the JoeBidendotcom page). The signature video on Manzullo’s page – his 5-minute questioning of federal bailout czar Neel Kashkari – has received more than 650,000 views and 500 comments. You can view and subscribe to Manzullo’s YouTube videos here.

Manzullo more recently launched Congressional pages on both Facebook (www.facebook.com and search for “Donald Manzullo”) and Twitter to share his opinions with the people he represents and gather their thoughts on public policy and the issues of the day. He has several hundred followers on both sites.

In addition, Manzullo has upgraded his official Congressional website with Flash video, Google maps, podcasts, an enhanced photo album, and social media tags. Residents can continue to sign up to receive Manzullo’s email updates at http://manzullo.house.gov. To date, more than 3,320 residents have subscribed to Manzullo’s e-newsletters, emailed news releases, and updates on issues of interest. The website also provides Manzullo’s positions on issues and bills he has authored and co-sponsored. The Constituent Services section provides assistance to the people of northern Illinois who are having problems cutting through the red tape of the federal bureaucracy. It also helps constituents order U.S. flags, sign up for tours in Washington, D.C. and apply for the military academies.

“Communicating with the people I represent has always been important to me, and the difficult times we face as a nation right now make it even more vital for me to hear from residents,” Manzullo said. “I strongly encourage the people of northern Illinois to visit my web page and sign up for my email updates, as well as subscribe to my pages on YouTube, Facebook and Twitter. I look forward to hearing from residents on the important issues we face as a nation.”

Manzullo: Stimulus "Compromise" Slashes Job-Creating
Tax Incentives, Continues Jobless Spending Spree

[WASHINGTON]  Congressman Don Manzullo (R-Egan) today said the $792 billion House-Senate compromise on the stimulus bill “made a bad bill worse” by cutting the few job-creating tax incentives in the bill while continuing to fund questionable spending programs that will saddle future generations with massive debt without stimulating our economy or creating jobs. With interest, the bill will cost the average American family $9,418 in new spending and debt.

Manzullo supported alternative legislation that would have created 6.2 million more jobs at half the cost, given American families up to $3,400 in added tax relief they could re-invest in the economy, reduced taxes on job-creating small employers by 20 percent, and provided significant tax incentives to bolster the sales of homes and automobiles. He will vote against the Democrat leadership bill this afternoon. The bill, which was negotiated behind closed doors without any input from House or Senate Republican leaders, was not made public until late last night.

Despite being promoted as a job-creating infrastructure bill, the legislation includes just 4 percent for roads, and the Illinois Dept. of Transportation plans to use our allotment primarily to resurface and patch existing roads. And after the first two years, the bill would actually reduce the wages of Americans because of the temporary nature of the funding, according to the Congressional Budget Office.

Instead of reducing the rampant non-stimulus spending in the bill, House-Senate negotiators:

• Cut $28 billion in direct tax relief for Americans. To pay for the added spending, negotiators reduced the $1,000 tax cut for couples to $800.
• Cut $35.5 billion in tax incentives to boost the housing industry and encourage Americans to buy homes. The Senate bill included a provision to give Americans a $15,000 tax credit to purchase a new home, but negotiators reduced the credit to $8,000, only allowed it for first-time homeowners, and limited the relief to purchases made by this August.
• Cut $8.5 billion in tax incentives to boost auto sales and put Americans back to work. The Senate bill included a provision to allow Americans to deduct from their income taxes both the sales tax from a new car purchase and the interest on the auto loan. Negotiators eliminated the loan interest write-off – the bulk of the incentive – and instead allowed the sales tax deduction to remain. What was a $1,500 tax benefit was slashed to about a $300 benefit, not really enough to encourage someone to buy a new vehicle.

“The original bill was chocked full of spending that would neither create jobs nor stimulate our economy, and very little was focused on job-creating infrastructure improvements and putting money back in people’s pockets so they could re-invest it in the economy. Amazingly, this compromise bill actually removed the little job-creating spending that was in the legislation and made this bad bill worse,” Manzullo said.

“Americans need their jobs back so they can afford to support their families and make their mortgage payments or rent. And that will only happen when Americans start buying cars again, start purchasing homes again, and start spending again. We need to provide incentives to encourage purchases and to lower the cost of doing business in the United States, and the compromise bill actually goes in the wrong direction. The massive amount of non-stimulus spending in the bill – which goes directly to the national debt -- should be debated during the regular budget process, not included in the stimulus bill.”

Some of the questionable stimulus spending in the compromise bill includes:

• $2 billion for the Neighborhood Stabilization Fund, providing funds to organizations such as ACORN, which has been accused of practicing unlawful voter registration in recent elections.
• $50 million for the National Endowment for the Arts.
• $170 million to research climate change.
• $400 million for NASA to accelerate climate research missions.
• $1 billion for a post analysis of the 2010 census.
• $650 million for Digital-to-Analog Converter Box Coupons. No converter boxes are made in the United States.
• $1 billion for a Prevention and Wellness Fund, which can be used for sexually transmitted disease (STD) education and prevention programs at the CDC.
• $400 million to allow the Secretary of Health and Human Services to establish a permanent board to ration health care services, a precursor to universal health care.
• $15.6 billion to increase the maximum Pell Grant (for college expenses) from $4,731 to $5,231. This huge expenditure will not send more students to college or hire any more teachers; it will merely give those already receiving the grants an extra $500 a year.
• $13 billion to improve reading programs. We can debate this added spending during the regular budget process, but it is not an immediate job-creating stimulus.
• $2 billion for additional child care subsidies.

Manzullo to Governor Quinn: Capital Bill Would
Put Illinoisans to Work, Reduce Traffic Congestion

[WASHINGTON]  Congressman Don Manzullo (R-Egan) today sent a letter to Illinois Governor Pat Quinn urging him to immediately focus on passing a capital bill that would improve roads and rail throughout the state and put tens of thousands of Illinoisans to work.

Calling it the “real stimulus plan,” Manzullo said a capital bill would finally spend the $6.2 billion in federal transportation funds – sitting unused in Springfield since 2005 – on road, bridge and rail expansion projects throughout Illinois. The $825 billion stimulus bill the U.S. House passed last week – Manzullo voted against it – would only provide $1 billion for road and rail projects in Illinois.

“The $6.2 billion in federal transportation funding we delivered to the state has sat untouched by our state’s leaders the past 4 years. In the meantime, vital road and transit projects in the northern Illinois district I represent have gone unfulfilled as our residents have continued to suffer with unnecessary traffic congestion and hazardous road conditions,” Manzullo said. “Under your new leadership as Governor, I respectfully request that you reach out to the members of the Illinois General Assembly and make the passage of a capital bill your number one priority in the new legislative session.”

Working with U.S. Senator Dick Durbin and then-Senator Barack Obama, Manzullo secured $51 million in the 2005 surface transportation bill for a host of road and rail projects throughout northern Illinois. In addition, the Illinois Congressional Delegation secured a record $6.2 billion, a 33 percent increase over the last transportation bill, for the State of Illinois to use at its discretion. Manzullo and the other Members of Congress are concerned that the state’s failure to spend the money could hurt chances to get more funding for Illinois when the next federal transportation bill comes up for a vote next year.

A copy of the letter to Governor Quinn is attached.

February 2, 2009

The Honorable Pat Quinn
207 State House
Springfield, IL 62706

Dear Governor Quinn:

It cannot be underestimated the challenges you face as you assume the leadership of our great state. The stain left by our past governor will not be easily removed, but I know you will do your best to move Illinois forward.

I was pleased to hear your mention of a construction bill among your early priorities. For the past 6 years, the State of Illinois has gone without a major capital program and our citizens deserve action now to fix our crumbling roads and bridges.

In 2005, the Illinois Congressional Delegation banded together to deliver a record amount of federal transportation funding to the State of Illinois, a 33 percent increase over the last federal transportation bill. Amazingly, the $6.2 billion we delivered to the state has sat untouched by our state’s leaders the past 4 years. In the meantime, vital road and transit projects in the northern Illinois district I represent have gone unfulfilled as our residents have continued to suffer with unnecessary traffic congestion and hazardous road conditions. And the costs of the projects have continued to escalate further out of reach.

Under your new leadership as Governor, I respectfully request that you reach out to the members of the Illinois General Assembly and make the passage of a capital bill your number one priority in the new legislative session. Please consider that the stimulus bill Congress is debating provides just $1 billion to Illinois for roads and transit. A capital bill – with $6.2 billion in federal funds plus the money added from Illinois’ gas tax and sales tax on fuel – is the real stimulus plan that will put Illinoisans back to work

Thank you for your leadership on this important matter. I look forward to working with you to help Illinois move forward.

Sincerely,

Donald A. Manzullo
Member of Congress
16th District of Illinois

Manzullo: Stimulus Bill Short on Job Creation, Stimulus

House bill very different than legislation President Obama has been discussing

 January 26, 2009                                      CONTACT: Rich Carter (815-356-9800)

 As the U.S. House prepares to vote on an $825 billion so-called Stimulus Bill later this week, Congressman Don Manzullo put together a list of major concerns he has with the bill proposed by House Democrat leaders. Manzullo supports initiatives that focus on putting Americans back to work and giving Americans back more of their hard-earned money that they can re-invest in the economy. The bill as proposed by House Democrat leaders, however, is very different from the legislation President Obama has been discussing and does little to stimulate the economy and put Americans back to work. Here’s Manzullo’s analysis of the House bill as presented:

1. Americans need jobs right now, and this bill does little to put Americans back to work. 

·        Despite claims it is a job-creating infrastructure bill, just 4 percent ($30 billion) of the $825 billion bill is allocated for road construction. This amounts to less than one half of the average annual federal road spending allocation.

·        The 16th Congressional District will see little of the road funding because it primarily will be given to the states to use at their discretion with no opportunity to earmark funding for specific projects. The State of Illinois has traditionally ignored the road infrastructure needs of northern Illinois outside of Chicago.

2. The little job-creating infrastructure spending that exists in the bill takes too long to stimulate the economy.

·        According to the Congressional Budget Office, only 7 percent of the overall infrastructure spending would be delivered to the economy by the end of the federal fiscal year on October 1.

·        Just one in seven dollars of the massive $18.5 billion on energy efficiency and renewable energy projects would be spent within the next 18 months.

·        Plans to bring broadband Internet service to rural and underserved areas will take years to implement, and only 25 percent of the clean drinking water projects can be completed by October 2010.

3. The vast majority of spending in this bill has nothing to do with stimulating the economy but rather increasing government social programs.

·        The debate over whether to increase these government programs should come during the normal budgeting process – it should not be disguised as emergency stimulus spending.

·        The non-job creating spending in this bill includes:

a)      $50 million for the National Endowment for the Arts.

b)      $400 million to study climate change.

c)      $200 million to revitalize the National Mall, including planting new sod.

d)      $1.1 billion to allow the Secretary of Health and Human Services to establish a permanent board to ration health care services, a precursor to universal health care.

e)      Hundreds of millions of dollars for contraceptives and family planning services through Medicaid.

f)        $650 million dollars for additional digital TV converter box coupons.

g)      $166 billion in direct aid to help states pay their bills.

h)      $13 billion for reading programs.

i)        $15.6 billion to increase the maximum annual Pell grant (for college students) by $500 from $4,360 to $4,860.

j)        $3 billion to public health departments for additional immunizations.

k)      $1 billion in additional funding to pay heating bills of low-income Americans.

l)        $1 billion for the 2010 census.

m)    $100 million for National Science Foundation scholarships.

n)      $200 million for nutrition programs.

o)      $200 million to provide incentives to teachers to raise test scores.

p)      $2 billion in additional funds for low-income child care.

q)      $900 million in additional funds to prepare for the pandemic flu.

4. The record spending in this bill will skyrocket the national debt and stick our children and grandchildren with the bill. We are wasting hundreds of billions of dollars each year on interest on the debt.

·        The national debt was $9.2 trillion in 2008, is estimated at $10.3 trillion in 2009 after the bailouts, and is estimated at $10.8 trillion if the stimulus bill is enacted.

·        At $9.2 trillion in 2008, Americans paid $420 billion that year just on interest on the debt. That’s nearly one fourth of the entire federal budget for that year. If the stimulus bill is enacted, that interest payment will approach $500 billion in 2009.

5. I support alternative stimulus provisions that focus more on job creation and giving Americans back more of their hard-earned money that they can re-invest in the economy.

·        Just last week, I introduced legislation (HR 550) to stimulate the economy and create jobs by giving Americans a $5,000 tax credit to purchase a new vehicle. The automobile industry and its suppliers account for 13 million American jobs, 20 percent of all U.S. retail sales, and billions of dollars in state and local sales taxes. The drop in U.S. vehicle sales from 16.2 million in 2007 to 10.5 million in 2008 removed $175 billion directly from our economy and has been one of the leading causes of America’s economic downturn and huge job losses. If we can incentivize people to buy cars again, we can go a long way to restoring our economy.

·        I also cosponsored legislation (HR 101) that would provide a tax credit up to $7,500 to encourage Americans to buy homes again, putting millions of Americans back to work in the housing and real estate industry.

·        We should also give Americans back more of their hard-earned money so they can re-invest it back in the economy. By lowering the two lowest tax rates from 10 to 5 percent and 15 to 10 percent, we could save a married couple up to $3,200 a year in taxes.

·        We should also reduce the heavy tax burden on America’s business community – especially the job-creating small businesses – so they can better afford to put Americans back to work.

Manzullo & Lipinski: Spending in Any Stimulus
Bill Should Support American Workers

[WASHINGTON]  U.S. Reps. Don Manzullo (R-IL) 

and Dan Lipinski (D-IL) and 49 of their colleagues today co-signed a letter to the House leadership urging them to require any money spent under the proposed stimulus bill be used to buy American-made products whenever possible. 

"Whether you support the stimulus bill or not, we should all agree tax dollars should focus on creating American jobs, not more jobs overseas,” said Manzullo. “That's why I support this Buy American provision. It will ensure any spending in the stimulus bill will support American jobs."

Lipinski added, “Congress is currently considering whether we will spend $825 billion - or more - American taxpayer dollars to get the economy moving again and put people back to work,” said Lipinski, “Everyone should agree that these taxpayer dollars should be spent here at home. Wherever possible, Federal, state, and local governments, contractors and subcontractors should spend the stimulus grants to help American industries and American workers.”

The Buy American Act of 1933 requires the federal government to support domestic manufacturers and workers by purchasing American-made goods, but it is riddled with loopholes and is often waived.  Unless a strong “Buy American” provision is added to any economic stimulus bill, American industries, workers, and families will not reap the full benefits of the stimulus package.

Manzullo has led Congressional efforts to strengthen American manufacturing and has successfully passed several bills to strengthen the Buy American Act. In 2001, he forced the Defense Department to cancel several foreign-based contracts for Army berets and instead rebid the contracts for American-based firms.

The text of the letter is attached:

January 21, 2009

Dear Speaker Pelosi and Republican Leader Boehner:

As Congress continues to discuss a comprehensive strategy to revive our struggling economy, we urge you to include a strong “Buy American” provision in the economic stimulus package.  If we are going to spend up to $1 trillion to stimulate our economy, we should make sure that American taxpayer dollars are used to create American jobs in America – not Chinese jobs in China.

It is clear that our nation faces enormous challenges.  In December, U.S. factory activity fell to a 28-year low.  The U.S. economy shed more than 2.4 million jobs in 2008, making it the worst year of job losses since World War II.  The unemployment rate, already at a disturbingly high 7.2%, could reach double digits by the end of this year.  If the intent of the stimulus bill is to put Americans back to work, the money must be spent here at home.  American taxpayer dollars should go to American workers. 

The stimulus package will likely contain significant investments in our transportation infrastructure and schools. While the labor cannot be outsourced, we should make sure that --- whenever practical --- spending on materials and equipment stays here at home too.  We should rebuild our bridges with American steel and concrete. We should weatherize our schools with domestically produced windows and insulation.

The same is true for renewable energy.  If the stimulus package invests in a cleaner energy future and freedom from foreign oil, let’s put American companies to work making solar panels and wind turbines.  If the stimulus invests in modernizing our electrical grid, let’s use American transformers and smart meters. And if the stimulus invests in the next generation of plug-in hybrids, we should do everything possible to make sure that our American auto industry and its suppliers benefit.

In addition, President-elect Obama has proposed a massive effort to make all health records standardized and electronic within five years. This modernization could save money and improve healthcare, but if we want to create IT jobs here at home instead of in Bangalore, we must use American software and hardware. 

If Congress wants to help American workers, we need to buy American. We cannot afford to spend hundreds of billions of dollars – perhaps $1 trillion – only to watch contractors and subcontractors turn around and send that money abroad.  We only have one chance to get this right.  We strongly urge you to include a “Buy American” provision in any stimulus legislation.

Thank you for your time and attention regarding this critical issue.

Sincerely,

Daniel Lipinski
Donald Manzullo
Christopher P. Carney 
Phil Hare
Betty Sutton
Michael H. Michaud
Jerry F. Costello
Daniel Maffei
Steve Cohen
Paul D. Tonko
Mary Kaptur
Tim Holden
Michael E. Capuano
Brian Baird
Solomon Ortiz
Grace F. Napolitano
Thaddeus G. McCotter
Gene Taylor
Laura Richardson
Michael A. Arcuri
Tim Ryan
Joe Donnelly
Marion Berry
Peter A. DeFazio
Lincoln Davis
Travis Childers
Gary Peters
Emanuel Cleaver
Glenn Nye
Robert C. Scott
Charles A. Wilson
David Loebsack
Mike Doyle
Tim Murphy
Al Green
David Wu
Peter J. Visclosky\
Bart Stupak
Mike Ross
Don Young
Bob Filner
Bill Foster
Michael E. McMahon  
Walter B. Jones  
Timothy H. Bishop
John D. Dingell
Dale E. Kildee 
Sander M. Levin
Chellie Pingree
Frank A. LoBiondo
Eleanor Holmes Norton
John J. Duncan Jr.
Zachary T. Space

Manzullo & Upton: Tax Credit to Purchase New
Vehicles Would Stimulate Economy, Create Jobs

[WASHINGTON]  U.S. Reps. Don Manzullo (R-IL) and Fred Upton (R-MI) today introduced legislation to stimulate the economy and create jobs by giving Americans tax incentives to purchase cars and trucks.

The Get America Moving Again Act of 2009 (HR 550) would bolster American manufacturing and spur vehicle sales and production by giving Americans tax credits of $5,000 to purchase a new vehicle and $2,000 to purchase a used vehicle through Dec. 31, 2009. The tax credits would be cut in half in 2010 and expire on Dec. 31, 2010. The tax credits would be limited for vehicles that cost under $50,000 and would only be allowed for households with an adjusted gross income of $250,000 or less.

The automobile industry and its suppliers account for 13 million American jobs, 20 percent of all U.S. retail sales, and billions of dollars in state and local sales taxes. The drop in U.S. vehicle sales from 16.2 million in 2007 to 10.5 million in 2008 removed $175 billion directly from our economy and has been one of the leading causes of America’s economic downturn and huge job losses.

“If we can get cars and trucks to start selling again, inventory will move from factory lots and dealers’ showrooms and manufacturing can start again.  It pays salaries of all the vehicle assembly workers, dealers, and employees, and their thousands of suppliers.  It replenishes local and state sales tax receipts.  It restarts manufacturing and supply chains and the economy begins to boom again because vehicles are the second biggest consumer item after housing,” said Manzullo, co-founder and co-chair of the House Manufacturing Caucus.

“Folks are struggling in Michigan and across the nation – and this measure provides families in Middle America a helping hand as they seek to replace their older, gas guzzling vehicles, with newer, more fuel efficient cars.  Encouraging folks to buy now will also help our nation’s automakers start selling vehicles again and create jobs, all the while boosting our ailing economy.  This legislation will help put families and the nation’s economy back on the road to recovery,” said Upton, co-chair of the Congressional Auto Caucus.

Manzullo and Upton are also working on a second bill that will move the tax credit concept to a voucher system so that consumers can see the immediate benefit of the incentive at the point of sale of a vehicle. 

A New Beginning - Bill Brady

On Wednesday, I was honored to be sworn in for another term as a state senator representing the people of the 44th District. With my wife Nancy at my side, I proudly took my oath of office to support the Constitution of the State of Illinois and work for the people of Illinois.

With the outlook of a more civil and cooperative spirit in the Senate with the election of Senator John Cullerton as Senate President, I believe we can accomplish much for the people of Illinois. But I will stand against proposals to raise taxes or impose other burdens on the citizens of Illinois who today are fearful of the fallouts of a nationwide economic crisis not seen in generations.

It is time for a new beginning in Illinois. We face serious challenges in resolving a budget deficit, providing an economic climate that supports the creation of jobs, and in restoring the shaken faith of the citizens of Illinois in their government.

Minutes after the swearing-in ceremony, the Senate took up the necessary organizational matters to begin the impeachment trial of Governor Blagojevich. Many commented that it was the most somber moment they had seen inside the Senate chambers. I agree, because my colleagues and I who took oaths to serve as jurors take very seriously the responsibility that has been given us.

It was a surreal experience to see a cartful of evidence from the special House investigating committee wheeled into the Senate chambers. It was also a sobering experience as we were called to answer individually that we understood our grave responsibilities as members of a jury in the impeachment trial.

This is a serious and unfortunate time in Illinois. We will determine for the first time in the 190-year history of our great state whether to remove a governor from office. My responsibilities are like those of anyone who sits on jury in any community of this state, and that is the reason I have been unusually quiet on the matter of impeachment. As a member of the jury, I am duty-bound to consider the evidence before rendering a verdict. I am honor-bound to refrain from commenting on details of the impeachment charges and the evidence.

Because I have been sworn as a juror to consider the charges against the Governor, I am delaying any formal announcement of my personal political plans until the trial has ended. My resolve is unwavering, my goal to provide new leadership for our state unchanged. Many of you know that we had laid the foundation for an announcement in late January, but I believe this unprecedented chapter must be concluded before I make that announcement. At this time, public responsibilities must come before personal ambitions.

Impeachment is another sad chapter in Illinois history. Yet I have faith that Illinois will rebound from it, as Illinois always has responded to daunting challenges, and be stronger for it.

Manzullo Urges Illinois Senate to Act
Quickly on Blagojevich Impeachment  

[WASHINGTON]  Congressman Don Manzullo (R-Egan) issued the following statement reacting to the Illinois House’s impeachment today of Illinois Governor Rod Blagojevich following his arrest last month on federal corruption charges:

“Based on the heinous charges against him, Governor Blagojevich is obviously not fit to hold our state’s highest office, and I fully support the Illinois House’s decision today to impeach him. Our state faces many serious challenges right now and cannot function with Governor Blagojevich in office. I strongly encourage the Illinois Senate to quickly proceed with efforts to endorse the impeachment and remove Blagojevich from office. Only then will our state government be able to move forward and deal with the needs of the people of Illinois.”

Springfield Update

The criminal challenges facing Governor Blagojevich continue to dominate national newscasts, as you know, and continue to have a negative impact on Illinois government and our reeling state finances.

Illinois still faces a budget deficit of at least $2 billion and perhaps as high as $5 billion. Just this week, Blagojevich's arrest and the uncertainty over Illinois government caused bond house officials to downgrade the state's credit rating - increasing the cost of selling $1.4 billion in bonds to pay overdue bills to state vendors and providers by $20 million.

Without a speedy resolution, Illinois, its lawmakers and its officials will be focused on the immediate question at hand, at a time when we all should be looking for solutions to a growing economic crisis and its effect on state finances. We need a Governor, unencumbered by criminal charges, who can devote his full attention to state government in the coming weeks and months.

While I still believe the Governor's immediate resignation provides the most advantageous relief for the citizens of Illinois, he has so far adamantly resisted stepping aside.

In the meantime, the House has initiated hearings that could ultimately result in impeachment. As a member of the Senate, I must remain impartial because my fellow Senators and I would serve as the jury in the trial of the Governor should the House approve articles of impeachment.

On another critical front, Democrats in the General Assembly this week left intact the Governor's ability to appoint a new United States Senator to fill the vacancy of President-Elect Obama. They denied giving citizens the right to vote to fill the vacancy in a special election free of allegations of taint that now surround the selection process.

We had an opportunity in Springfield to remove a little of the political scum away from the next senator from Illinois. Unfortunately the people in control set Illinois back again. We Republicans were ready to move Illinois forward beyond the allegations of corruption.

Along with many others, I strongly supported changing the law and calling a special election that would be timed with upcoming municipal elections to minimize its costs. But our common sense fell on the deaf ears of the Chicago ward bosses and Democrat politicians who control the General Assembly and Illinois state offices. The status quo and politics of Chicago were apparently fine with them.

Best Regards,

Bill Brady

Manzullo Offers Plan to Strengthen
U.S. Auto Industry, American Economy

[WASHINGTON]  Congressman Don Manzullo (R-Egan)
today told the CEOs of the Big 3 Automakers that they must look beyond their short-term needs and employ programs to increase the demand for their vehicles if they expect to survive the next several years.

A member of the House Financial Services Committee, Manzullo participated in this morning’s committee hearing on a potential bailout of GM, Ford and Chrysler. Manzullo challenged the CEOs of each of the companies during the hearing, seeking their thoughts on the value of offering tax incentives to encourage Americans to buy vehicles. Manzullo’s opening statement can be viewed on his website at http://manzullo.house.gov.

“I care deeply about the 2,600 people who work at Chrysler’s Belvidere Assembly Plant and the thousands more who work at auto dealerships and auto suppliers in northern Illinois. But simply giving the automakers money to stem the bleeding will do nothing to protect their jobs in the future,” Manzullo said. “Auto sales are down 30 to 50 percent for each of the companies, and we must consider offering tax credits or other incentives to encourage Americans to buy cars again.”

Manzullo supports a 3-step approach to strengthening the U.S. auto industry and improving our economy:

1. Allow automakers to stem the bleeding by tapping some of the previously approved $25 billion in loans for retooling plants to meet higher fuel economy standards. This is the fastest way to get cash to automakers because it is a bipartisan solution supported by the President and does not require a taxpayer bailout. With a legislative tweak, the automakers could quickly get the cash they need and then pay it back to the retooling fund at a later date.
2. Require management and unions to follow through on plans to restructure and make Big 3 American companies more cost competitive. This restructuring will be necessary to ensure American companies can compete in the future with foreign vehicles built in America.
3. Provide incentives to encourage Americans to start buying cars again. Manzullo co-sponsored a bill – HR 7273 – that would allow Americans an income tax deduction on the sales tax and interest they pay on a new car. This would provide a $1,300 tax benefit on the purchase of a new $25,000 car. He is also considering a straight tax credit on the purchase of a new or used vehicle (if we offer a tax incentive to promote new car sales, we must also offer a tax incentive – albeit smaller – for used cars or the dealerships will be flooded with unsellable used cars).

Manzullo also believes accelerating the domestic manufacturing tax deduction – which he co-authored in 2004 – would dramatically reduce taxes on the Big 3 American automakers and give them the cash infusion they need to sustain and create new jobs. The manufacturing deduction currently provides a 6 percent tax rate reduction for manufacturers on the goods they produce in the United States. The tax rate reduction is scheduled to increase to 9 percent by 2010, but a bill Manzullo authored earlier this year (HR 5101) would accelerate the phase-in to 9 percent retroactively to Jan. 1, 2008.

“This legislation gives our manufacturers an extra 3 percent cut in their tax rate immediately that they can use to sustain and create jobs in America,” Manzullo said. “It also provides a greater incentive for our manufacturers to keep jobs in the United States and actually bring some jobs back from overseas because they would pay a 9 percent tax premium on any work they send offshore.”

Manzullo supports several other free-market strategies to help American automakers, including:

• Allowing companies to repatriate their overseas profits back to the United States tax free for one year if the money is used to pay off distressed debt or support business expansion or job creation.
• Suspending the capital gains and “recapture taxes” for two years to encourage Americans to invest in America and encourage corporations to sell unwanted assets and acquire the capital they need to sustain and create jobs.
• Allowing companies to carry-back losses an additional two years, generating a tax refund and immediate capital.
• Directing the Securities and Exchange Commission to suspend the mark-to-market regulatory rules until the agency can issue new guidelines that will allow firms to mark these assets to their true economic value.
• Reducing the corporate tax rate from 35 to 15 percent.
• Ensuring unusually high pension funding requirements do not destroy America’s automakers in these troubled economic times.

Manzullo Proposes New Free-Market Strategies
to Strengthen America's Struggling Economy

[WASHINGTON]  Congressman Don Manzullo (R-IL) today proposed several new strategies Congress can pursue to ease America’s credit crunch, strengthen our economy and create jobs without sticking taxpayers with the bill. Manzullo offered his suggestions during a Financial Services Committee hearing called to discuss the state of the U.S. economy.

Manzullo, who opposed the $700 billion taxpayer bailout of Wall Street in favor of several proven free-market alternatives, said one strategy -- accelerating the domestic manufacturing tax deduction -- would give our companies a cash infusion they could use to sustain and create new jobs in America.

The American Jobs Creation and Economic Stimulus Act of 2008 (HR 5101), which Manzullo authored with Rep. Dan Lipinski (D-IL) earlier this year, would speed up the domestic manufacturing tax deduction to give manufacturers a larger tax break on the goods they produce in the United States. The tax deduction – which Manzullo helped create in 2004 – currently provides a 6 percent tax rate reduction for manufacturers on the goods and services they produce in the United States. The tax rate reduction is scheduled to increase to 9 percent by 2010, but the bill would accelerate the phase-in to 9 percent retroactively to Jan. 1, 2008.

“This legislation gives our manufacturers an extra 3 percent cut in their tax rate immediately that they can use to sustain and create jobs in America,” Manzullo said. “It also provides a greater incentive for our manufacturers to keep jobs in the United States and actually bring some jobs back from overseas because they would pay a 9 percent tax premium on any work they send offshore.”

Manzullo supports several other free-market strategies to strengthen our economy, including:

• Allowing companies to repatriate their overseas profits back to the United States tax free for one year if the money is used to pay off distressed debt or support business expansion or job creation.
• Suspending the capital gains and recapture taxes for two years to encourage Americans to invest in America and encourage corporations to sell unwanted assets and acquire the capital they need to sustain and create jobs.
• Allowing companies to carry-back losses an additional two years, generating a tax refund and immediate capital.
• Directing the Securities and Exchange Commission to suspend the mark-to-market regulatory rules until the agency can issue new guidelines that will allow firms to mark these assets to their true economic value.
• Reducing the corporate tax rate from 35 to 15 percent.

Manzullo: Congress Must Act to Fix Our Economy,
But Bailout Poses Awful Risks for America's Future

(WASHINGTON)  Congressman Don Manzullo (R-Egan), a member of the House Financial Services Committee, issued the following statement this afternoon after he again voted against the $700 billion taxpayer-funded plan to bail out America’s struggling financial markets. Manzullo instead supports two proven alternative bills (HR 7223 and HR 7226 – click on bill numbers for summaries) that could have attacked the problem without spending taxpayer dollars:

“Like all Americans, I am extremely concerned about our economy and recognize that Congress needs to act quickly to ease the credit crunch and return some confidence to our markets. That’s why I voted against the latest bailout bill today, a bill that former Bush Treasury Secretary Paul O’Neill said could have potentially ‘awful’ consequences for our economy.

“Although the latest version includes some sweeteners – including tax extenders I support and that would have passed overwhelmingly in separate legislation – the base bill remained fatally flawed because it still stuck America’s taxpayers with the bill for the bailout. In fact, the bill would still allow one man – the Treasury Secretary – to literally spend all $700 billion in 30 days, or $7,500 for each American taxpayer. Giving one person that much power is not only unprecedented, but dangerous because it gives him the authority to pick and choose ‘winners’ and ‘losers’ in buying up not only bad mortgage debt, but auto and credit card debt and even debt held by foreign banks, including the Bank of China.

“The tragedy here is that Americans were never given an alternative. The President announced we had a major problem and said the only remedy was to take the draconian step of spending $700 billion of taxpayer money within a week or our economy would collapse, a plan his former Treasury secretary called ‘crazy’ and that hundreds of our nation’s top economists called ‘unfair’ and ‘short-sighted.’

“The sadness is that the Administration and Congressional leaders ignored other proven alternatives that could have solved the problem without spending anywhere near $700 billion in taxpayer money. One alternative would have set up an FDIC-style mandatory insurance program in which Wall Street firms would have paid to insure their mortgage-backed securities. Doing so would have made Wall Street instead of Main Street pay the cost of this rescue. But unfortunately, this solution was not considered. As a result, Americans will be paying for this bailout for generations to come.”

Manzullo: "Congress Must Fix This Financial Crisis,
But Not on the Backs of the American Taxpayers"

(WASHINGTON)  Congressman Don Manzullo (R-Egan) issued the following statement this afternoon after the House voted down the proposed $700 billion taxpayer-funded financial bailout bill. Manzullo opposed the legislation but supported alternative bills that would have alleviated the crisis without putting taxpayer money at risk:

STATEMENT

“The American people today rejected the $700 billion taxpayer bailout of the bad investments of Wall Street.  The American people did not cause this mess and loudly proclaimed that they demand a better deal. They were furious that those who caused the problem would be the ones to benefit at their expense. They recognized the solution offered was untested, expensive, and risky, while reasonable, cheaper, and proven solutions should have been given consideration by Congress.

“While I joined with the American taxpayers in opposition to this bill, I recognize the crisis at hand and the need to quickly approve a new measure that uses free-market incentives to encourage investment in the markets without taxpayer liability. Congress should stay in session around the clock until we solve this crisis.”

Manzullo: Taxpayers Should Not be Burdened with
Costs to Mitigate Problems Created by CN Rail Purchase

July 25, 2008

(CRYSTAL LAKE)  Congressman Don Manzullo issued the following statement reacting to the Draft Environmental Impact Study issued today by the Surface Transportation Board regarding the planned purchase of the EJ&E Rail line by the Canadian National Railway. CN plans to run an extra 15 to 20 freight trains each day on the line through Barrington, which would create significant traffic and safety hazards for McHenry County motorists:

“I’m very disappointed in the Surface Transportation Board’s response and the problems it will create for McHenry County motorists who drive through Barrington each day. The STB clearly states that motorists will face significant delays and safety hazards if Canadian National is allowed to purchase the EJ&E line and run an extra 15-20 freight trains through already congested Barrington each day. But then the STB washes its hands of any solutions, stating the overall plan will improve rail congestion throughout Chicagoland and the Canadian National should only have to pay 5 to 10 percent of the cost to mitigate the problem areas.

“As a result, taxpayers will be required to fund the hundreds of millions of dollars in improvements needed to mitigate the public problems caused by this private transaction. It’s ridiculous, and I will continue to work closely with my Congressional colleagues to ensure the taxpayers of McHenry County are not burdened by this deal.”

July 14, 2008 In this MegaVote for Illinois' 16th Congressional District: Recent Congressional Votes - Senate: FISA Amendments Act of 2008 Senate: Medicare Improvement for Patients and Providers Act of 2008 Senate: Foreclosure Prevention Act of 2008 House: Electronic Message Preservation Act Upcoming Congressional Bills - Senate: United States Global Leadership Against HIV/AIDS, Tuberculosis, and Malaria Reauthorization Act of 2008 House: Intelligence Authorization Act, FY 2009 House: The National Highway Bridge Reconstruction and Inspection Act

Recent Senate Votes

FISA Amendments Act of 2008 - Vote Passed (69-28, 3 Not Voting) The Senate passed this bill to revise U.S. surveillance laws. Sen. Richard Durbin voted NO......send e-mail or see bio Sen. Barack Obama voted YES......send e-mail or see bio Medicare Improvement for Patients and Providers Act of 2008 - Vote Agreed to (69-30, 1 Not Voting) The Senate passed this bill that stops a scheduled 10.6 percent Medicare physician payment cut. Sen. Richard Durbin voted YES......send e-mail or see bio Sen. Barack Obama voted YES......send e-mail or see bio Foreclosure Prevention Act of 2008 - Vote Agreed to (63-5, 32 Not Voting) The Senate passed its version of a housing-recovery package. Sen. Richard Durbin voted YES......send e-mail or see bio Sen. Barack Obama voted Not Voting......send e-mail or see bio

Recent House Votes

Electronic Message Preservation Act - Vote Passed (286-137, 11 Not Voting) The House passed a measure requiring federal agencies to begin storing e-mail records, according to standards set by the National Archives and Records Administration. Rep. Donald Manzullo voted NO......send e-mail or see bio

Upcoming Votes

United States Global Leadership Against HIV/AIDS, Tuberculosis, and Malaria Reauthorization Act of 2008 - S.2731 The Senate will vote on this bill to fund programs in foreign countries that combat HIV/AIDS, tuberculosis, and malaria. Intelligence Authorization Act, FY 2009 - H.R.5959 The House is scheduled to vote on this bill to authorize appropriations for intelligence and intelligence-related activities in the next fiscal year. The National Highway Bridge Reconstruction and Inspection Act - H.R.3999 The House is expected to vote on this bill to improve highway bridge safety.

In this MegaVote for Illinois' 16th Congressional District: Recent Congressional Votes - Senate: Flood Insurance Reform and Modernization Act Senate: Food and Energy Security Act House: Strategic Petroleum Reserve Fill Suspension and Consumer Protection Act House: Farm, Nutrition, and Bioenergy Act House: Amendment to Military Construction and Veterans Affairs Appropriations Act Upcoming Congressional Bills - Senate: FY2008 War Supplemental House: Renewable Energy and Job Creation Act of 2008 House: Concurrent Budget Resolution for 2009 House: National Defense Authorization Act, FY2009

Recent Senate Votes

Flood Insurance Reform and Modernization Act - Vote Passed (92-6, 2 Not Voting) The Senate voted to reform and reauthorize the National Flood Insurance Program, which maps America's floodplains and underwrites flood insurance for communities that adopt and enforce floodplain management regulations. Sen. Richard Durbin voted YES......send e-mail or see bio Sen. Barack Obama voted YES......send e-mail or see bio Food and Energy Security Act - Vote Agreed to (81-15, 4 Not Voting) The Senate gave final approval to a $289 billion measure that would set agriculture policy for the next five years. Sen. Richard Durbin voted YES......send e-mail or see bio Sen. Barack Obama voted Not Voting......send e-mail or see bio

Recent House Votes

Strategic Petroleum Reserve Fill Suspension and Consumer Protection Act - Vote Passed (385-25, 23 Not Voting) The House passed this bill that would suspend deposits into the Strategic Petroleum Reserve as long as the price of crude oil remains above $75 per barrel. Rep. Donald Manzullo voted YES......send e-mail or see bio Farm, Nutrition, and Bioenergy Act - Vote Passed (318-106, 10 Not Voting) The House passed a $289 billion measure that would set agriculture policy for the next five years. Rep. Donald Manzullo voted YES......send e-mail or see bio Amendment to Military Construction and Veterans Affairs Appropriations Act - Vote Failed (141-149, 132 Present, 12 Not Voting) The House rejected an amendment to the military construction bill that would fund military operations in Iraq and Afghanistan through fiscal year 2008 and into fiscal year 2009. Rep. Donald Manzullo voted Present......send e-mail or see bio

Upcoming Votes

FY2008 War Supplemental - The Senate is scheduled to work on their version of a $193 billion bill to fund military operations in Iraq and Afghanistan. Since the House rejected the portion of the bill funding military operations, it will be up to the Senate to add those funds. Renewable Energy and Job Creation Act of 2008 - H.R.6049 This $57 billion House bill would extend a number of expiring or soon-to-expire tax provisions. Concurrent Budget Resolution for 2009 - S.Con.Res.70 The House is scheduled to begin work on this resolution setting 2009 fiscal year budget levels. The start of floor action is contingent on Senate and House conferees completing a final draft of the resolution. National Defense Authorization Act, FY2009 - H.R.5658 The House may begin considering this bill that would authorize $600 billion for defense spending for the upcoming fiscal year.

Manzullo Unveils 12-Point Plan to
Reduce Surging Gas Prices in America

(ROCKFORD)  Congressman Don Manzullo (R-Egan) today unveiled his comprehensive gas price relief plan that aims to eliminate America’s dependence on costly foreign oil while promoting alternative energies and conservation at home.

The 12-point plan, a compilation of years of legislative and administrative proposals, uses short and long-term strategies to give the United States more control over its own fuel needs.

“There is not one easy way to reduce our gas prices. We must make many changes in policy and practice to take control of our fuel needs,” Manzullo said. “My 12-point plan brings together short and long-term strategies that promote alternative energies and conservation while eliminating our dependence on costly foreign oil. It is a comprehensive plan that would make our nation stronger, increase our energy supplies, and lower gas prices in America.”

Congressman Manzullo’s 12-point plan includes legislative and regulatory proposals to:

·      Eliminate federal mandate for expensive “boutique fuels” in Illinois during summer months.

·      Stop filling America’s Strategic Petroleum Reserve.

·      Reduce exorbitant taxes on gasoline and diesel fuel in Illinois.

·      Encourage motorists to conserve fuel and save money by increasing their driving efficiencies.

·      Provide tax incentives to encourage motorists to purchase more fuel-efficient vehicles.

·      Avoid tax increases on oil and gas that will be passed on to motorists.

·      Scrutinize earnings and profits of oil companies and prosecute price gouging when it exists.

·      Withhold assistance to OPEC countries that fail to support reasonable oil production.

·      Allow more domestic exploration and development of oil and gas.

·      Encourage the continued development and production of alternative and renewable fuels.

·      Encourage the continued development and production of alternative vehicles.

·      Provide incentives to encourage the development of new refineries in the United States.

CONGRESSMAN DON MANZULLO’S 12-POINT PLAN

TO REDUCE SURGING GASOLINE PRICES IN AMERICA 

“Gasoline prices are at record high levels primarily because of a huge increase in the worldwide demand for oil, and the foreign oil producers’ unwillingness to increase production combined with an insufficient utilization of domestic resources. We need a comprehensive energy policy that balances conservation with new incentives for research and production of renewable and alternative fuels, as well as increased domestic extraction and refinement of oil and gasoline. In 1973, during the first oil crisis, America imported 35 percent of its oil and today we import 59 percent. We must end our dependence on costly foreign oil for our own national security so we no longer have to rely on outsiders who often don’t have our best interests at heart.”

                                                             -- Congressman Don Manzullo (IL-16)       

Immediate relief

1. Eliminate federal mandate for “boutique fuels” in Illinois during summer – In the Chicagoland area — including McHenry County — gas prices are about 20 cents higher than other northern Illinois counties from May 1 to October 1 because the U.S. Environmental Protection Agency (EPA) requires cleaner-burning Reformulated Gasoline to be sold during the peak driving season. These more expensive “boutique fuels” were first required in the 1990s to offset smog in areas with heavy pollution. However, the EPA never took into consideration that the Chicago area has always blended its basic gasoline with clean-burning ethanol and now is marketing super-clean-burning E-85 to Flex Fuel vehicles in northern Illinois. Illinois should receive an “ethanol credit” because it is already burning cleaner fuel and be relieved from the boutique fuel requirement. Furthermore, the other areas of northern Illinois not required to burn boutique fuels still see price increases during the summer because the process of making the boutique fuels also increases the cost of making basic gasoline. Effect – Reduces gas price by 20 cents per gallon from May to October.
2. Stop filling America’s Strategic Petroleum Reserve – Our nation’s Strategic Petroleum Reserve currently stands at an all-time-high of 701 million barrels of oil. This meets the reserve goals of the International Energy Agency. Although our nation’s stated goal for the Strategic Petroleum Reserve is to reach 1 billion barrels, it is unnecessary at this time and would waste taxpayer resources by requiring the government to pay an extremely high price to fill the reserve right now. Effect – Halting purchases for the Strategic Petroleum Reserve would reduce gas prices by 5 to 10 cents per gallon.
3. Reduce exorbitant taxes on gasoline in Illinois – Each gallon of gasoline in Illinois includes an 18.4-cent federal gas tax (federal tax on diesel is 24.4 cents), a 19-cent state gas tax, a 1.1-cent state environmental tax, a 6.25 percent sales tax (about 22-cents-per-gallon when gas is at $3.50), and various local taxes, totaling more than 60 cents per gallon in most areas of the state. Congress and the Illinois General Assembly should consider reducing this excessive amount of taxation at least temporarily during this crisis. Illinois is one of a handful of states in our nation that levies a sales tax on gasoline on top of a state motor fuel tax. Effect – Could reduce gas price by up to 60 cents per gallon.
4. Encourage motorists to conserve fuel – In addition to saving money, motorists can reduce our nation’s demand for foreign oil by practicing the following driving tips from the AAA Motor Club:
   • Start your car properly by not racing a cold engine to warm it up or allowing it to idle for an extended time.
   • Maintain a steady speed; quick starts and sudden stops waste fuel, are harder on vehicle components and increase the odds of a traffic crash.
   • Facilitate routine maintenance, such as tire, air filter, oil and fluid checks, and engine tune-ups, to ensure maximum fuel efficiency.
   • Use the air conditioner conservatively, using your vehicle's "economy" or "recirculation" setting, which reduces the amount of hot outside air that must be chilled. Effect – Proper car maintenance and sensible driving could lower gasoline bills by up to 30 percent for motorists while reducing America’s demand for expensive foreign oil
5. Provide tax incentives to encourage motorists to save fuel
   • Support legislation that would increase or remove the cap limitations on the tax credit of up to $3,000 for consumers who purchase alternative powered motor vehicles. Currently, only the first 60,000 hybrid vehicles of a particular make and model sold after January 1, 2006 qualify for the tax credit. For many of the most popular hybrid vehicles, the tax credit has expired or will expire at the end of this year. HR 76 would increase the number of hybrid vehicles eligible for this tax credit to 250,000.
   • Support legislation to help offset the cost of idling reduction devices that allow truck drivers to control temperatures in their sleeping cabs while the ignition is “off.” HR 139 would allow a tax credit up to $1,000 for the purchase of the devices, which are estimated to save 960 million gallons of diesel fuel annually if adopted by all truck drivers. Effect – Providing tax incentives to encourage motorists to save fuel would lower gasoline bills for motorists while reducing America’s demand for expansive foreign oil.

Long term relief

6. Avoid tax increases on oil and gas that will be passed on to motorists – On several occasions the past year and a half, the Democrat-led Congress has brought various bill to the floor of the House that would significantly increase taxes and regulations on the oil and gasoline industry.  Imposing these burdens will only cause the companies to pass along their extra costs and raise prices at the pumps. A “Windfall Profits Tax” that taxes profits above a certain level was tried in the 1980s and failed miserably because it prompted the oil and gas industry to halt exploration and production in the United States and move it overseas to avoid the cost increases; as a result, our reliance on costly foreign oil increased 13 percent during that time. While oil and gas companies have reported record profits, they have also made record investments of $1.25 trillion in long-term energy initiatives over the past 15 years. Effect – Avoiding tax increases would keep gas prices down and encourage gas and oil companies to continue exploration and production in America, reducing our reliance on costly foreign oil.
7. Scrutinize earnings and profits of oil companies; eliminate energy speculation – With most major oil companies again reporting double digit profits this year, federal and state authorities should redouble their scrutiny of the oil and gas industry to ensure price gouging is not occurring. From 1973 to May 2007, the Federal Trade Commission (FTC) conducted approximately 190 oil industry investigations that resulted in at least 44 enforcement actions. Most notably, the FTC investigated gasoline pricing following Hurricane Katrina but found no evidence of manipulation. At the same time, we need to encourage oil companies to reinvest more of their profits into exploration and production of gasoline and R&D of alternative fuels in United States.  We must also crack down on energy traders that have excessively speculated on the price of a barrel of oil. A provision in the 2008 Farm bill gives the Commodity Futures Trade Commission (CFTC) the authority to monitor energy trading behavior and prevent manipulation, particularly when these oil contracts are being used to establish a price reference for other contracts.  Effect – Reinvesting oil profits into domestic production and alternatives research would help eliminate America’s dependence on costly foreign oil.  Eliminating excessive energy speculation will restrain rapid price increases.
8. Withhold assistance to OPEC countries that fail to support reasonable oil prices – Major oil producing nations have the power to reduce oil prices by increasing supplies. Unfortunately, the OPEC cartel is taking advantage of the United States' dependence on its oil and refuses to turn on the spigot and produce more oil. The U.S. should take action to reduce, suspend, or terminate bilateral assistance and arms exports to major net oil exporters engaged in oil price fixing as part of a concerted diplomatic campaign with other major net oil importers to bring about the compete dismantlement of international oil price fixing arrangements. Effect – Increasing foreign oil production would reduce the price of oil.
9. Allow more domestic exploration and development of oil and gas – The United States has limited control over the price of gasoline because it relies too heavily on expensive foreign oil. Our nation has vast oil resources that are not being extracted for various reasons. We need to do a better job of extracting the estimated 112 billion barrels of U.S. oil reserves, which could power 60 million cars for 60 years:
   • Using environmentally sound practices, we can produce an estimated 1.5 million barrels of oil a day on a tiny portion of the Arctic National Wildlife refuge (exploration would occur on 2,000 of the 19 million acres of the ANWR) in Alaska. The oil from the ANWR would increase America’s onshore oil reserves by over 50 percent. HR 3089 would allow oil extraction from ANWR.
   • During exploration in 2006, Chevron found a deep well offshore in the Gulf of Mexico capable of producing up to 15 billion barrels of oil. China recently partnered with Cuba to drill offshore in areas near the Florida Keys that American companies are banned from exploring. HR 3089 would end the offshore drilling ban America has had in place for many years to open up 14.3 billion of barrels of oil off the Atlantic and Pacific coasts for extraction.
   • The U.S. Geologic Survey just released a new assessment of production estimates for the massive Bakken Oil Formation in Montana and the Dakotas. The government now estimates 4.3 billion barrels of oil can be extracted from those fields with existing technology. We should encourage environmentally sound exploration and development of these oil resources.
   • Experts estimate billions of barrels of oil exist in the United States underground in abandoned oil fields. Energy companies should explore ways to extract these resources in an environmentally sound manner as soon as possible. Effect – Allowing for more domestic extraction of oil would reduce our dependence on expensive foreign oil and bring down gas prices in America through increased supply
10. Encourage the continued development and production of alternative and renewable fuels – Although widespread use of alternative and renewable fuels is many years away, we must continue to research and develop the fuels of the next generation. We tried natural gas to power our vehicles but the rise in its price made it uneconomical except for larger vehicles such as delivery trucks and buses. Currently, corn-based ethanol helps to keep gas prices down by about 54 cents per gallon; however, it has matured enough as a technology to merit a gradual reduction of the direct benefits ethanol producers receive from the government. Congress must pass legislation that provides new incentives to develop other promising energy alternatives:
    • Coal to liquid technology that provides diesel fuel (HR 2208).
    • More environmentally sensitive extraction methods for oil shale (HR 2652).
    • Extraction of oil from tar sands and heavy oil.
    • Further refinement of biodiesel (HR 3781).
    • Cellulose-based ethanol (made from switchgrass and other non-corn sources). Effect – Alternative and renewable fuels will reduce the demand for costly foreign oil and reduce gas prices in America
11. Encourage the continued development and production of alternative vehicles – We must accelerate the development of the Freedom Car initiative at the U.S. Department of Energy that is exploring the viability of plug-in hybrids, fuel cells, hydrogen-powered cars, and clean diesel vehicles. Effect – Alternative vehicles will save motorists money, conserve energy, lower greenhouse gas emissions, and reduce America’s dependence on costly foreign oil.
12. Provide incentives to encourage development of new refineries in United States – American oil refineries are operating at or near capacity. Legislation that Congressman Manzullo voted for in 2005 is making modest progress in increasing operating refining capacity, but more still needs to be done. New refineries are needed to speed up production and reduce the price of gasoline. EPA’s regulatory framework for reviewing and processing refinery applications must be streamlined.  HR 3089 permits tax exempt bonds to be used for oil refinery construction. Effect – Development of new refineries in the United States would increase supplies of gasoline, lowering the demand and reducing the cost to motorists.

4/10/08
Yesterday, two anti-business proposals advanced out of House Committee.  These proposals are now on the House floor awaiting a vote by the full Illinois House.  Please contact your legislators today, and urge them to vote "NO" on each of these job-killing proposals.

Proposal 1- Doubling the Individual Income Tax Rate

A proposed constitutional amendment, HJRCA 42, would double the state income tax on individuals, or married couples, that earn $250,000 or more.  This huge tax increase will hit small business owners and act as a tremendous disincentive to locate high paying jobs in our state.  Also, at a time Washington is looking to remove the "marriage penalty" from the federal tax code, Illinois would enshrine one in its Constitution if this proposal were to pass.

Please contact your House member in opposition to HJRCA 42  

Proposal 2 - Reinstatement of the Structural Work Act

HB 2094, as amended, will reinstate the Structural Work Act which was repealed in 1995 due to its negative impact on the economy.  The Act allows workers injured on the job to sue third parties outside of the workers' compensation system.  It will lead to higher construction costs and create a tremendous new potential liability for employers, contractors, local governments and professional service firms.

Strengthening Manufacturing, Creating Good-Paying Jobs in Northern Illinois
About a year ago, I came across an article in the paper that said the aerospace industry was facing production delays because of a shortage of high-end fasteners (nuts, bolts and screws). I immediately picked up the phone and called my friends at Acument Global Technologies, which owns a fastener plant in Rockford. They said they had been thinking about re-entering the aerospace fastener market, and we agreed to set up some meetings with aircraft manufacturers.

Over the next several months, we learned of a severe shortage industry-wide for aerospace fasteners. Acument moved ahead with plans to restart aerospace manufacturing, and last week we held a news conference to announce the rebirth of Camcar Aerospace in Rockford, IL. Camcar Products Co. originally opened in 1943 to develop fastening solutions for the B-24 Liberator heavy bomber during World War II.

The new company will immediately hire 50 new employees with the potential for hundreds more when the plant is operating at full capacity. In addition, I was able to secure $750,000 in federal funds for a joint Research & Development venture between Camcar Aerospace and Northern Illinois University to create new titanium components for our nation’s defense.

Northern Illinois is quickly emerging as an “aerospace cluster” with advanced technology and production occurring at Hamilton Sundstrand (currently hiring 150 new engineers in Rockford), Woodward, Smiths Aerospace (GE Aviation), Ingenium Aerospace, Kaney Aerospace, and smaller suppliers to the industry, such as Superior Joining Technologies in Loves Park, Forest City Gear in Roscoe, and many others. The aerospace market represents one of the biggest growth markets for our manufacturers, as the worldwide number of airplanes is expected to double from 18,000 today to more than 35,000 by 2024.

Aerospace will provide good-paying jobs for many generations to come, and it’s great to see so many northern Illinois manufacturers involved in this advanced growth market.

Securing Our Borders, Building the Fence
This past week, the U.S. Dept. of Homeland Security announced it was using its waiver authority in an effort to finish building 670 miles of fence along our southern border by the end of this year. To date, 309 miles of fence have been constructed with another 361 miles to be built by the end of the year. Of the 361 miles of fence left to be built, 267 miles are being delayed by federal, state and local regulations.

The waivers to certain environmental and land management laws would allow the federal government to cut through the red tape to complete portions of the fence in California, Arizona, New Mexico and Texas. It will facilitate additional pedestrian and vehicle fence construction, towers, sensors, cameras, detection equipment, and roads in the vicinity of the border. 

I strongly support this initiative to more quickly complete the border fence, especially because the work will still be completed in an environmentally friendly manner. Our national security is at stake, and we must do everything we can to expeditiously finish the border fence to keep terrorists and other foreign criminals from entering our country.

Promoting Renewable and Alternative Energy Projects in Northern Illinois
For many years, I have been a strong supporter of several initiatives researching and developing renewable and alternative energies in northern Illinois. I highlighted many of these projects during a speech I gave to the Green Communities Coalition in Rockford last week.  The planning stages, methane digesters, and a pending wind farm. In addition, I helped secure funds to start the New Uses Ag Tech Park in Belvidere and Freedom Field in Rockford, two initiatives that are researching and developing the latest in renewable and alternative energies.

The prices for gasoline and natural gas are at all-time highs, and we must do everything we can to reduce our dependence on costly foreign oil. I support a comprehensive, balanced energy plan that expands the use of renewable and alternative energies while increasing domestic production of gasoline and natural gas. Northern Illinois is doing its part to help our country become self-sufficient for our energy needs.

Congressman Don Manzullo

Manzullo Votes to Cut Wasteful Spending, Balance the
Budget, Reject Huge Tax Increases on American Families
(March 14th)  

(WASHINGTON) Congressman Don Manzullo (R-Egan) will vote later today for a budget resolution that calls on Congress to cut wasteful Washington spending, balance the budget and pay off the national debt, enact a moratorium on earmarks, and avoid huge tax increases on American families.

The Republican substitute for the Fiscal Year 2009 Budget Resolution – which Manzullo will support on the House floor – sets forth a budget blueprint for the federal government the next 5 years. It spends significantly less than the Democrat version and the President’s budget request. The Republican version would start to pay off the national debt by 2013 without increasing taxes on Americans. It would also repeal the Alternative Minimum Tax that unfairly snares many middle-income taxpayers.

The Democrat version of the budget resolution would allow the 2001 and 2003 tax relief provisions to expire in 2010. Failure to extend the tax cuts will cause all income tax rates to increase, cut the child tax credit in half, bring back the marriage tax penalty, and revive the death tax at its highest level. It will also surge tax rates on capital gains and dividends, which will hurt seniors living off their investments. The tax increases will harm Americans in the following ways:

• 113 million taxpayers will see their taxes go up by an average of $2,216.
• Over 5 million individuals and families who would have seen their income tax liabilities completely eliminated will now have to pay taxes.
• 45 million families with children will face an average tax increase of $2,864.
• 15 million elderly individuals will pay an average tax increase of $2,934.
• 27 million small business owners will pay an average tax increase $4,712.

“With gasoline and food prices skyrocketing and millions of Americans barely getting by, the last thing we should be doing is saddling our citizens with thousands of dollars of tax increases,” said Manzullo, who has voted 212 times since January 2007 to cut spending. “We can fund our priorities and begin to pay off our debt by cutting wasteful spending, and we can do it without increasing taxes that Americans can’t afford. We have got to get our financial house in order.”

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