Washington, D.C.--U.S. Senate Republican Leader Mitch McConnell delivered the following remarks on the Senate floor Monday regarding the need for a long-term economic growth plan:



“Last week the Senate squandered an opportunity to bring timely help to homeowners. Rather than propose a bipartisan plan targeted at those most in need, our friends on the other side proposed a plan that would have helped some by increasing monthly mortgage payments on everyone who owns a home. They checked the political box, knowing their plan wouldn’t have broad bipartisan support, then we walked away from the problem, leaving it unaddressed.



“It’s my hope this week to bring our friends back to the table, so the two parties can work together on addressing a crisis that did not go away over the weekend. America’s economy is slowing. A lot of families are struggling. And we need to work together without any more political posturing to help families who are most in need without harming other families or our long-term economic health.



“So last week Republicans proposed a variety of measures aimed — first of all — at helping those who need it most. The Treasury Department is already working with a number of major lenders to see what can be done about keeping certain mortgages from driving families from their homes. Republicans support these efforts to help families, not bailouts for banks and speculators who are losing money on a bad financial bet.



“Many families that are making their payments on time are worried about the value of their properties going down, or of the crime rate going up in places where the foreclosure rate is high. To help them, Republicans are proposing a major tax credit for people who buy foreclosed homes in hard-hit areas, provided they intend to live in them.



“State and local Housing Financing Agencies are well-positioned to help families that are on the verge of foreclosure. That’s why the Bush Administration has proposed that state and local entities issue $10 billion in tax exempt bonds, and then use the proceeds to refinance mortgages that are most at risk.



“The centerpiece of the Democrat plan to aid struggling homeowners is to let bankruptcy judges refinance the terms of their mortgages. This, as I’ve indicated and as the Chicago Tribune editorialized over the weekend, might temporarily help some. But it would also lead to higher monthly mortgage payments for everyone else.



“In California, where the housing crisis is most acute, mortgages for families that are making their monthly payments on time would potentially go up by nearly $4,000 a year. Homeowners in New York and some other states would potentially see payments go up by nearly $3,000. Homeowners in Oldham County, Ky., would see their monthly payments go up $2,100 a year.



“It’s not fair to penalize those who do make their payments in an effort to help those who can’t. This is a principle Republicans are proud to defend.



“Republicans believe the best way to ensure the long-term economic well-being of all homeowners and to create new opportunities for future homeowners is to stimulate the economy, help people keep their jobs, and to help workers keep more of what they earn.



“That’s why, in this economy, the Senate should act quickly to remove any fear that families have about paying the looming AMT tax. We know we’ll patch the loophole that puts this target on the backs of millions of middle-class taxpayers. Let’s reject the political posturing and patch it now, without raising taxes, so families have one less thing to worry about.



“In this economy, the Senate should also remove any uncertainty about the future status of tax credits that have helped millions of American families over the last few years.



“We should extend the Child Tax Credit, which saves 44 million families an average of about $2,500 annually.



“We should extend a ban on the marriage penalty, so young couples don’t get hit with a tax just for wanting to start a family.



“We should extend the Research and Development Tax Credit, which is one of the most effective tools we have in keeping America at the leading edge of technology — and in creating and retaining high-paying, high-quality jobs.



“We should extend Renewable Energy and Energy Efficiency tax credits, which are a proven incentive for increasing the use of wind, solar, biomass, and other alternative forms of energy — and a sure way to lower our dependence on foreign sources of energy. And we should do this too without raising taxes.



“Next week, as we debate the budget resolution, we will see very clearly the vision our friends on the other side have for America’s economy — a vision of higher taxes, so Washington can spend more of Americans’ tax dollars, more regulation, and more litigation.



“At a time of economic uncertainty, this approach would be a grave mistake. In the coming weeks, Republicans will offer a different vision based on a strategy for maintaining our nation’s long-term economic strength and competitiveness.



“This is a debate Republicans are eager to have.”



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