John Cornyn on The Economy

Last Updated : Nov 09, 2010

Summary

In an effort to help stabilize the housing market in 2007, Senator Cornyn supported a measure to provide $15,000 in tax relief over 3 years to anyone purchasing a home. In 2008, he also supported the Bush stimulus and applauded the bipartisan vote to approve the legislation.

Senator Cornyn voted in favor of the TARP program, but was critical of Fannie Mae's and Freddie Mac's actions leading up to the bailout. He stated that the takeover put tax payers on the hook for $200 million through actions that were questionable, and that it could have been avoided had the programs been reformed earlier. He called for the termination of the CEOs of both organizations. He called for a reform of the two institutions after the bailout to avoid future problems, and for a complete investigation into the legality of actions taken. He stated that although he did not like the all or nothing proposal that TARP represented, but that the cost of inaction was too high.

Senator Cornyn opposed the release of the second half of TARP money, claiming that the transparency with the first half was not sufficient to ensure that it had the intended effects and that there was no reason to believe this would change with the second half. He was critical of foreign banks receiving money from TARP, which was designed to assist US banks and by mid 2010, he was calling for TARP to be ended.

Senator Cornyn was an opponent to the 2009 Stimulus bill and called it a massive trillion dollar unstimulative 'stimulus' bill crafted by partisans despite the vocal opposition of tens of millions of their constituents. After the legislation passed, Senator Cornyn expressed his disappointment, noting that "Overspending is what landed our nation in the economic turmoil we find ourselves in today, and the partisan spending bill passed by Senate Democrats only exacerbates this irresponsible behavior." He supported an alternative plan which cut taxes.

Senator Cornyn also opposed the 2010 Wall Street Reform Legislation, stating that it did not end "too big to fail" and that it imposed more regulations and red tape, which punishes small business owners and community bankers who had little or nothing to do with the economic crisis.

 

Tax Credits for Home Buyers

In August of 2007, Senator Cornyn released a press statement noting his support for a $15,000 tax credit for anyone that purchases a new home.

 

Support for the Bush Stimulus

In February of 2008, Senator Cornyn released a press statement noting his support for the 2008 Bush Stimulus plan. He released a similar statement when the stimulus package passed.

 

TARP and Freddie Mac and Fannie Mae

In September of 2008, Senator Cornyn released a press statement claiming that the bailout of Freddie Mac and Fannie Mae could have been avoided. Senator Cornyn also called for criminal investigations of the corporate officers of Freddie Mac and Fannie Mae.

Days later, when the first attempt to pass an economic stability act failed, Senator Cornyn released a press statement stating that doing nothing was simply not an option. He complained again about the lack of action with Fannie Mae and Freddie Mac and stated that there was too much partisanship involved in halting the act.

When the economic stabilization act did finally pass on October 1, Senator Cornyn released a press statement supporting the passage of the legislation.

 

Opposition to Second TARP Installment

In January of 2009, Senator Cornyn released a press statement noting that he would not be endorsing the releasing of the second half of TARP payments. Later in the month, Senator Cornyn released another statement claiming that releasing the second half of the TARP payments without greater transparency would be a great disservice to the American people.

 

 

Opposition to Stimulus

In January of 2009, Senator Cornyn released a press statement noting his opposition to the stimulus plan being put forth by President Obama and House Democrats.

After voting against the stimulus bill, Senator Cornyn released another press statement stating that while her was supportive of stimulus plans, he did not support the plan as put forth.

 

Alternative Stimulus

In February of 2009, Senator Cornyn sponsored an alternative stimulus package.

 

The AIG Bonuses

In March of 2009, Senator Cornyn released a press statement declaring that the American people deserve to know who is responsible for the AIG bonus fiasco, and what is going to be done to fix it.

 

TARP and Transparency

In March of 2009, Senator Cornyn released a press statement declaring that the bailout funds needed transparency, a detailed roadmap, and taxpayer protection.

 

 

Ending TARP

In January of 2010, Senator Cornyn released a press statement noting his support for a recently failed amendment to end the TARP program that was submitted by Senator Thune.

 

TARP and Foreign Nations

In May of 2010, Senator Cornyn released a press statement noting his recent amendment to ensure that foreign banks did not receive TARP bailout funds.

 

Wall Street Reform

In May of 2010, Senator Cornyn released a press statement noting the passing of financial regulatory reform and his opposition to many provisions within the legislation.

 

Official Website Statements

 

Voting Record

Wall Street Reform

In 2010, the Senate passed the Wall Street Reform and Consumer Protection Act of 2009. The legislation consolidated many financial regulatory agencies, increased transparency in the derivatives market, regulation of credit rating agencies, and a "resolution regime" to resolve insolvent banks. John Cornyn voted against the Wall Street Reform Legislation.

John Cornyn voted against the Wall Street Reform Legislation.

The Stimulus

After the stimulus passed the House, the conference report was voted on to pass the unified version. John Cornyn voted against the Stimulus in the final vote.

John Cornyn voted against the Stimulus in the final vote.

The Stimulus

The Obama stimulus package passed through the Senate in January of 2009 and received the support of all Democrats and three Republicans. John Cornyn voted against the stimulus in the initial vote.

John Cornyn voted against the stimulus in the initial vote.

TARP Funds - Disapproval of Second Installment

In January of 2009, the Senate voted to released the second half of TARP funds to President Obama. John Cornyn voted in favor of the resolution and against the second installment of TARP funds.

John Cornyn voted in favor of the resolution and against the second installment of TARP funds.

Helping Families Save Their Homes Act of 2009

The Helping Families Save Their Homes Act of 2009 was a program designed to assist those who may be able to remain in their home with a modest amount of government assistance. The bill got wide bi-partisan support in the Senate and passed 91-5. John Cornyn voted in favor of the Helping Families Save Their Homes Act of 2009.

John Cornyn voted in favor of the Helping Families Save Their Homes Act of 2009.

Troubled Asset Relief Program (TARP)

The TARP program was designed to prevent the failure of large banks by purchasing their "troubled assets" and allowing them to move them off their records as liabilities. The bill received both bipartisan support and bipartisan opposition and passed 74-25 with the two parties making up about half of each vote. In January of 2009, the Senate voted on granting the second half of the TARP funds to President Obama. John Cornyn voted in favor of the TARP program.

John Cornyn voted in favor of the TARP program.

The Bush Stimulus

In early 2008, the Recovery Rebates and Economic Stimulus for the American People Act of 2008 was passed in an attempt to stimulate the economy. Also known as the Bush Stimulus, the act consisted largely of checks sent to individuals. The bill received wide bipartisan support and passed the Senate 81-16. John Cornyn voted in favor of the Bush Stimulus.

John Cornyn voted in favor of the Bush Stimulus.

Bankruptcy Reform

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 completely redefined bankruptcy in the United States. The bill made it much more '); echo('for people to walk away from unsecured debt, such as credit cards, and permitted the court to award some compensation to creditors in the event that a bankruptcy was awarded. The bill got bipartisan support and passed 74-25. John Cornyn voted in favor of the Bankruptcy Reform bill.

John Cornyn voted in favor of the Bankruptcy Reform bill.

American Jobs Creation Act

The American Jobs Creation Act was a Republican plan that was signed into law in the summer of 2004. The legislation ending some taxes in the agriculture industry, reduced corporate tax rates from 35% to 32%, reduced taxation on overseas income, and provisions to help companies invest in equipment. It passed the Senate 69-17.

 

Sponsored and Cosponsored Legislation

Session-111; Bill Number-S 1198; Auto Stock for Every Taxpayer Act - Cosponsor

A bill to limit disbursement of additional funds under the Troubled Asset Relief Program to certain automobile manufacturers, to impose fiduciary duties on the Secretary of the Treasury with respect to shareholders of such automobile manufacturers, to require the issuance of shares of common stock to eligible taxpayers which represent the common stock holdings of the United States Government in such automobile manufacturers, and for other purposes

Session-112; Bill Number-S 18; Small Business Paperwork Mandate Elimination Act - Cosponsor

Amends the Internal Revenue Code to repeal a provision (added by the Patient Protection and Affordable Care Act) that extends to corporations that are not tax-exempt the requirement to report payments of $600 or more. Rescinds $39 billion of appropriated but unobligated discretionary funds. Exempts unobligated funds of the Department of Defense (DOD) or the Department of Veterans Affairs (VA). Requires the Director of the Office of Management and Budget (OMB) to determine and identify from which appropriation accounts such rescissions shall apply and report to the Secretary of the Treasury and Congress on such rescissions.

Session-111; Bill Number-S 3578; Small Business Paperwork Mandate Elimination Act - Cosponsor

Amends the Internal Revenue Code to repeal a provision (added by the Patient Protection and Affordable Care Act) that extends to corporations that are not tax-exempt the requirement to report payments of $600 or more.

Session-111; Bill Number-S 2787; TARP Sunset Act of 2009 - Cosponsor

Amends the Emergency Economic Stabilization Act of 2008 (EESA) to terminate, on December 31, 2009 (as under current law), the authority of the Secretary of the Treasury to implement the Troubled Asset Relief Program (TARP). Repeals the Secretary's authority to extend the TARP program through October 3, 2010, upon submission of a written certification to Congress.

Session-111; Bill Number-S J Res 5; A joint resolution relating to the disapproval of obligations under the Emergency Economic Stabilization Act of 2008 - Cosponsor

Declares that Congress disapproves the obligation of any funds that exceed specified amounts authorized for the purchase of troubled assets by the Secretary of the Treasury under the Emergency Economic Stabilization Act of 2008.

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