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Hoekstra Testifies on Big 3 Financial Stabilization
West Michigan Congressman Says that the Rules Change once Taxpayer Dollars Become Part of the Equation
Washington,
Nov 19 -
U.S. Rep. Pete Hoekstra, R-Holland, today testified before the House Committee on Financial Services on federal government assistance in stabilizing Detroit automakers.
“The current crisis should provide an opportunity to fundamentally reform the automobile industry in America to ensure its long-term success,” Hoekstra said. “There are a broad range of options to consider as we move forward.”
Hoekstra discussed offering tax credits on new vehicles to clear dealer inventory, as well as potentially delaying new fuel economy standards and emissions requirements. He said that Michigan can fix its illogical sales tax for new car purchases, and tax the differential between the cost of the new car and the value of a trade-in. Michigan currently taxes the full cost of new cars.
He also spoke of the need to reform Federal Prison Industries, which is taking federal government business from automakers and giving it to inmate workers during tough economic times just like they currently do with the office furniture industry.
Hoekstra stressed that when the Big 3 Detroit automakers accept federal assistance, they are now accountable to the taxpayers and that the rules change when that happens.
“Both blue collar and white collar workers need to make concessions such as eliminating golden parachutes and bonuses for executives and reforming the expensive benefits program for the labor union,” Hoekstra said. “Taxpayers cannot be expected to subsidize such excessive benefits. Once the taxpayers are repaid, they should be released from the restrictions.”
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