RELEASE: SUNUNU DISCUSSES CURRENT FINANCIAL CRISIS AND PLAN TO STRENGTHEN OUR ECONOMY

FOR IMMEDIATE RELEASE

CONTACT: Stefani Zimmerman

September 16, 2008

(603)792-2008

SUNUNU DISCUSSES CURRENT FINANCIAL CRISIS

AND PLAN TO STRENGTHEN OUR ECONOMY

Manchester, NH – Senator John Sununu discussed the crisis in the financial markets and laid out his plan to strengthen our economy. He also discussed the contrast between his pro-growth economic priorities and Jeanne Shaheen’s proposals to raise taxes on working families and small businesses.

“What we have seen is a dramatic real estate collapse across the country. That plummet in real estate value has meant a steep decline in the securities that are backed by real estate and has created big losses in the financial communities,” said Senator Sununu. “There are three priorities for responding and dealing with the current crisis on Wall Street and for strengthening the economy:  we need to fight to protect taxpayers interests, continue to implement strong oversight of regulatory markets in order to maintain credibility of these markets, and promote policies that encourage long term growth for New Hampshire’s small business economy.”

The Senator discussed the three key priorities that he will fight for as we navigate the current economic crisis:

·         Protect Taxpayers’ Interest: Neither Congress nor the Treasury should put taxpayers on the hook for bad decisions made by company executives. Taxpayers should not be responsible for bailing out companies that have made poor financial decisions.

·         Implement Strong Oversight Of Financial Markets: Strong oversight is important to maintain credibility in our economy. Senator Sununu wants American financial markets to be the strongest and most successful in the world, and that requires credibility through fair, strong and effective regulations. We should start by continuing to improve consumer regulations at the mortgage lending level. We should also increase oversight and regulation of Fannie Mae and Freddie Mac. Senator Sununu has lead the charge in Congress since 2000 to strengthen oversight of these mortgage giants.

·         Take Actions To Encourage Long Term Growth And Help Small Business: To strengthen our economy, we need to keep taxes low. During a credit and liquidity crisis, it is vital to hold the line on taxes, such as the death tax, income tax, capital gains tax and sales tax. If you raise these taxes you will hurt small, family owned businesses and every worker they employ. We also need a comprehensive energy policy that focuses on conservation, renewables and more offshore drilling to bring down skyrocketing energy costs. Senator Sununu also believes that we need to make it easier for small businesses to purchase health care policies for their employees, and increase access to individual health savings accounts.

The Senator also contrasted his plan to the liberal economic policies proposed by Jeanne Shaheen that would hurt our economy.

·         Taxes: Senator Sununu wants to keep taxes low by holding the line on both state and federal taxes. In the Senate, he has been a leader against tax hikes and speared-headed a successful push to extend the Internet tax moratorium. As Governor, Jeanne Shaheen raised taxes on movies, phone calls, skiing, signed the first statewide property tax and proposed 4.5% capital gains tax and a 2.5% sales tax that would have devastated New Hampshire’s economy. More taxes will depress economic growth and hurt small businesses and working families.

·         Energy: Senator Sununu wants a comprehensive energy policy that will focus on renewable energy sources, conservation initiatives and more domestic oil production. He has been a strong supporter of renewable energy tax credits and is currently co-sponsoring bi-partisan legislation in the US Senate that will lift the ban on offshore drilling. Jeanne Shaheen opposes expanded offshore exploration and efforts to drill in ANWR and with energy prices at record levels, she has flip-flopped her position on nuclear power after opposing it for decades. Opposition to commonsense energy proposals that will lower the cost of power will only make our current economic crisis worse.

·         Oversight Of Fannie Mae And Freddie Mac: In 2000, as a member of the House Budget Committee, Sununu chaired a Budget Committee hearing that addressed the systemic risks to the American finance system posed by the investment portfolios held by the GSE’s. Since 2003, Senator Sununu has pushed for greater regulation of Fannie Mae and Freddie Mac over the objection of liberals in Washington, such as Senator Chuck Schumer (D-NY). He co-authored reform legislation that was adopted in the 2008 housing bill, which was the centerpiece of the federal government’s efforts to address the nation's housing crisis. He recognized years in advance that these mortgage giants were growing in a way that put taxpayers at risk. Jeanne Shaheen has exhibited a complete lack of understanding and lack of credibility on this issue. As recently as February of 2008, (Union Leader, 2/3/08) Shaheen was actually calling for greater flexibility for both companies to grow and take on more mortgages.

“In order to strengthen the economy it is important to keep taxes low, support a balanced energy plan that includes increased domestic production, pass a comprehensive health care plan that allows more options for small businesses and regain stability in the housing market,” said Senator Sununu. “The last person New Hampshire needs in an economic crisis is someone like Jeanne Shaheen who’s first inclination is always to raise taxes - which in this economy is the absolute wrong direction for small businesses and families. As Governor, she broke her pledge and signed the first statewide property tax, vetoed a repeal of the state death tax, proposed a 4.5% capital gains tax and a 2.5% sales tax that would have devastated New Hampshire’s economy.”