Patterico's Pontifications

12/5/2009

Obama Administration: Let’s Just Spend the TARP Money

Filed under: Economics,Obama — DRJ @ 10:05 pm



[Guest post by DRJ]

The Obama Administration wants to spend unused or returned TARP money on a temporary jobs program:

“President Obama is almost sure to ask Congress Tuesday to use unspent TARP funds to finance a one-year jobs package that could cost upwards of $100 billion.

“That’s certainly one of the ideas,” White House Press Secretary Robert Gibbs said, referring to spending TARP funds on a jobs package. “I think that’s likely.”

House Speaker Nancy Pelosi first suggested tapping bank bailout funds to finance the Democrats jobs bill. After initial White House and Treasury Department resistance, the administration appears now committed to leveraging TARP funds.”

Republicans point out the TARP legislation requires that unused or returned TARP funds be used to pay down the debt:

“Congressional Republicans want unspent TARP funds – and loans repaid by the banks already – to be used exclusively for debt reduction. Republicans argue a section of the TARP law directs unspent funds and repaid loans to debt reduction. Congressional Democrats dispute this interpretation.

“It’s an outrage,” said Sen. Judd Gregg, R-N.H., ranking member of the Budget Committee. “It’s an absolute outrage. And you know who pays the bills? Our kids. It’s not right. It’s not fair and it’s not appropriate.”

Section 106 (d) of the TARP legislation reads as follows:

“Revenues of, and proceeds from the sale of troubled assets purchased under this Act, or from the sale, exercise, or surrender of warrants or senior debt instruments acquired under section 113 shall be paid into the general fund of the Treasury for reduction of the public debt.”

Gregg said the White House and congressional Democrats see the TARP funds as a trough of unspent money, not one-time only funds raised in dire circumstances to stabilize a financial system on the brink of failure. Gregg said TARP funds should fulfill that limited purpose or pay down the federal debt, now just over $12 trillion.”

Administration and Congressional sources termed the TARP language a “distinction” that would not prohibit TARP funds from being “recycled.”

— DRJ

14 Responses to “Obama Administration: Let’s Just Spend the TARP Money”

  1. They’re just common criminals, aren’t they.

    Patricia (b05e7f)

  2. I have a couple of crazy ideas.

    First, let’s take that $100 billion and write a check to the Chinese. I know it’s a small drop in the bucket as to what we owe them, but it’s a start.

    Then, let’s exempt small business owners from federal taxes for, say, ever. By that, I mean, if you have a small business with less than 100 employees, you don’t have to pay taxes on the income of your business. You will still have to pay personal income taxes.

    If those businesses grow to more than 100 employees, because of the new-found money they possess, then start taxing the business at 10 percent of net income and provide re-investment incentives, such as for every 10 people they hire, they receive a percentage deduction on net business income taxes. If they provide health insurance for all employees, their business taxes return to a nominal rate of 1 percent.

    If those businesses reach 1,000 insured employees, then punish them for being the dirty capitalists they are by execution.

    This way, everybody wins. Thousands of new jobs are created for those on the right. And the boss has to sweat that 999th job for the left.

    Ag80 (3d1543)

  3. i say we blame Sarah Palin for the problem….

    redc1c4 (fb8750)

  4. after all, it can’t be Ear Leader’s fault: he’s a good man.

    redc1c4 (fb8750)

  5. After all, it’s free money.

    Kevin Murphy (3c3db0)

  6. Oh, great. Obama is going to spend the TARP money on pet projects and now, the Bank of America announces it is going to repay $45 billion of TARP money. Dang.

    Maybe it would be better if the bank held onto the money just for a little longer…

    On the other hand, maybe the B of A is now playing along with Team Obama… returning the slush funds when needed.

    It’s not really like me to think I see conspiracies like that, but big business is on board with Obamacare and press bailouts to name a couple other unholy alliances.

    I’m still waiting for the federal takeover of auto insurance. What a great cash flow for the government to tap into! lol… Warren Buffet’s GEICO gekko doing the ads and all the money to Obama.

    Bill Lever (a16f35)

  7. Crooks and liars, are well, crooks and liars.

    My guess is for the longest time, Democrats have comfortably existed under the favoring wing of the lamestream media. The Internet is taking all that away — Which is why the Internet must be regulated by Obama and his ship of fools.

    bill-tb (365bd9)

  8. Great. Ear Leader has my money. Thats the hammer; and every problem we face looks like a nail to him. Meh Democraps…We are so ‘not racist’ in this country that we voted an incompetent into office just to prove it. Only in America.

    pitchforksntorches (8165c3)

  9. i say we blame Sarah Palin for the problem….

    If Palin had proposed this David Frum and Paul Krugman would be saying how stupid she is that she can’t read simple English. But since a Harvard Law School grad (hey, has anyone seen his college transcripts) said it, it’s as brilliant as the Gettysburg Address and evidence of how Obama understands the nuances of government.

    MU789 (4e85ea)

  10. Bill Lever,
    Have you seen the full-page ads in the Sunday papers from B of A? They are totally in collusion with Obama.

    They brag how they are donating a billion dollars to community organizers so that poor people can help themselves.

    Acorn’s got to get their money somewhere.

    Patricia (b05e7f)

  11. Here’s the deal:
    For a mere $50MM investment from TARP, I’ll expand my business by hiring fifty new people for a guaranteed five years, paying them double the Min Wage, with benefits.
    And, they can report all of this job growth as a net benefit in CA CD-99!

    AD - RtR/OS! (f2588c)

  12. Revenues of, and proceeds from the sale of troubled assets purchased under this Act, or from the sale, exercise, or surrender of warrants or senior debt instruments acquired under section 113 shall be paid into the general fund of the Treasury for reduction of the public debt.”

    None of those things are “unspent TARP money,” only problem here is the same ole, same ole, obstructionism and sleazeball-ism that does not care for unemployed American’s (or uninsured for that matter), but rather is bent on doing everything within their power to make sure that the Obama presidency is one of “failure.” These are the first assclowns who will complain about the lack of jobs in 2010, to point to the “failure,” of the Obama Admin to address the economy.

    Meanwhile..people can’t find work, are going broke, losing their houses and cars and unable to buy necessary items to save other people’s jobs.

    The criminals are in the mirror gentlemen.

    Assclown Pumpkinheads (f0d390)

  13. As a small-businessman, the most important job I can save is my own.
    Until that job is secure, you’re all on your own.

    AD - RtR/OS! (f2588c)

  14. And also a perfect example of why we’ll never “bend the curve” on health care entitlements. Once a debt is voted into place, even if the borrowed funds aren’t spent yet…they’ll find something to earmark them for vs. giving them back or scrubbing that amount of debt off the balance sheets.

    Every. Single. Time.

    rtrski (75d09a)


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