YOU HAVE AN ESSENTIAL ROLE IN THE FIGHT AGAINST CRONYISM AND CORPORATE WELFARE
Earlier this year lawmakers introduced H.R. 597 to reauthorize the Export-Import Bank of the United States. Rep. Stephen Fincher (R-TN) authored the bill and 57 other lawmakers have signed on as co-sponsors in support. Although the Export-Import Bank claims to facilitate trade between the U.S. and other nations, it actuality uses taxpayer dollars to subsidize massive companies like Boeing, GE and Caterpillar.
Those three companies account for roughly 90 percent of the bank’s loan guarantees. This isn’t about creating exporting opportunities for every American company, but rather doling out favors to a handful of well-connected special interests.
Congress must stand firm against cronyism and say NO to reauthorizing the Export-Import Bank.
This week hundreds of business owners will be flown to Capitol Hill, guided by the U.S. Chamber of Commerce and other big money beneficiaries, to share how they benefit from the Ex-Im Bank. But if you follow the money — these small businesses are the exception, not the norm.
Proponents of the Export-Import Bank to obscure the facts frequently use anecdotes. 147 out of every 148 exporters in the country — and 182 out of every 183 small business exporters — operate without the bank. Policymakers need to understand why the companies lobbying today are uniquely reliant upon export subsidies.
Here are some questions to ask the fly-in supporters of the Ex-Im Bank:
- What made you go to the bank for assistance?
- Why aren’t your customers eligible for private financing?
- What percentage of your sales are reliant upon Ex-Im?
On occasion, a business owner will offer up a compelling story. Good policy is not made on exceptions, though, especially when those exceptions are proven to put other domestic firms at a competitive disadvantage.
Americans didn’t give Republicans a historic majority to hand out favors to K Street lobbyists and well-connected special interests. If they want to honor their mandate, they’ll allow Ex-Im to expire and advance policies that creates opportunity for everyone.
Bottom line: The Ex-Im Bank must be stopped. The Ex-Im Bank is set to expire in June. Congress must take a bold stand against cronyism and say NO to reauthorizing the Export Import Bank.
Heritage Action for America
Phone: (202) 548-5280