Monday, February 26, 2024
Hawai'i Free Press

Current Articles | Archives

Thursday, April 17, 2014
We Give Foreigners Taxpayer Money to Import Stuff from America. What?
By Heritage Foundation @ 8:03 AM :: 3462 Views :: National News

We Give Foreigners Taxpayer Money to Import Stuff from America. What?

by Amy Payne, Heritage Foundation, April 17, 2014

Photo: Xinhua/Sipa USA/Newscom Photo: Xinhua/Sipa USA/Newscom

Is there anything the U.S. government doesn’t take taxpayer dollars to do?

Here’s a lesser-known function of your hard-earned money: providing backing for people in other countries to buy things from America.

Come again? Yes, that’s right. Let’s say Air China wants to purchase some Boeing jets. To encourage that purchase, America’s Export-Import Bank could loan Air China the money. If Air China were to default on the loan, U.S. taxpayers would be left on the hook.

Put simply, taxpayers should not be financing this kind of “bank”—which is “little more than a fund for corporate welfare,” as candidate Barack Obama described it in 2008.

The Ex-Im Bank, as it is called, is scheduled to expire in September—giving Congress an opportunity to end this program and focus on issues that matter to Americans, like lowering taxes and reducing burdens on businesses here at home.

Sen. Mike Lee (R-Utah) recently wrote that the Ex-Im Bank primarily helps big businesses that have friends in Washington.

Most of the benefits go to large corporations that are perfectly capable of securing private financing anywhere in the world. That is to say, Congress allows Ex-Im Bank to risk taxpayer money unnecessarily to subsidize well-connected private companies.

This kind of public policy privilege, best described as “crony capitalism,” is a threat to the free market and its moral underpinnings.

It matters where the money is going, too. A look at the countries getting loans shows that they’re not all America’s biggest fans: They include Venezuela, Cuba, Russia, and China.

Ex-Im loans can subsidize purchases by foreign governments as well as businesses in their countries—and those businesses may be competing with U.S. firms. This doesn’t help the U.S. economy. Heritage expert Diane Katz explains:

Ex–Im officials assume that the economic activity they subsidize would not occur absent bank financing. That is an absurd notion, but it is prevalent among bureaucrats who cannot fathom that business actually functions without them.

American taxpayers don’t need to fund any more cronyism, much less loans to hostile nations. We don’t need the Export-Import Bank.

Read the Morning Bell and more en español every day at Heritage Libertad.

Quick Hits:

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT