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NTU urges Senators to vote “NO” on reauthorization of the Export-Import Bank.
March 16, 2012
By Nan Swift
NTU urges Senators to vote “NO” on reauthorization of the Export-Import Bank. It is a mistake to attach the controversial and misguided reauthorization of the Export-Import Bank to a jobs bill that has overwhelming bipartisan support.
While the taxpayer-backed guarantees the Export-Import Bank (Ex-Im Bank) offers might benefit certain businesses that are struggling to compete, the kind of subsidies in corporate welfare programs such as these pose serious risks to taxpayers and lead to misallocations of resources. American businesses, large or small, should not be coming to the taxpayer for handouts in order to prop up their exports.
Proponents of the bank cite its role in filling private funding gaps, but those gaps argue for its elimination, not its continuance. If private entities are unwilling to risk their own money, that should provide a clear warning sign against exposing taxpayer dollars as well. Furthermore, the actions of the Ex-Im Bank contribute a negligible portion of our staggering $2.1 trillion in exports. Clearly, businesses are having plenty of success exporting without the need for taxpayer backing. When government picks winners, the real losers are the American people as witnessed by debacles like Solyndra, a company that received Ex-Im funding.
It is unfortunate that Senator Reid would insist on attaching this issue to the JOBS Act, which passed the House with overwhelming bipartisan support of 390-23. We urge you to reject this amendment to ensure that the JOBS Act remains a vehicle for economic expansion, not subsidy expansion.
Roll call votes on Ex-Im Bank reauthorization will be significantly weighted in our annual Rating of Congress and a “NO” vote will be considered the pro-taxpayer position.
If you have any questions, please contact NTU Federal Affairs Manager Nan Swift at (703) 683-5700