South Korea Fully Opens Its Markets to U.S. Beef

I am very pleased that South Korea has agreed to fully open its markets to U.S. beef.  This is tremendous news for beef producers in the 19th District and across the country who have been waiting for this market to expand.

This deal has been long overdue, and I am thrilled that U.S. Trade Ambassador Susan Schwab’s negotiations were successful. When I last met with her in the fall, one of our main discussion points was the importance of gaining full access to the South Korean beef market.

I join Texas beef producers in looking forward to safe, high quality American beef being served on South Korean tables.

Tax Freedom Day

Last week, millions of hard working Americans filed their tax returns with the government by April 15th as mandated by law. This week, we reach “Tax Freedom Day” or “The Cost of Government Day,” as it is commonly referred to by many tax reform groups. This is the day when the average wage earner begins to keep all the money he or she works for during the year. For example, assuming a worker receives two paychecks per month, they would have given back the equivalent of eight of their paychecks to the government in the form of taxes.

Each and every day before that, every dollar they earn goes to the government in the form of taxes. This year, 100 percent of the income the average American earns from January 1st to April 22nd (113 days) will go to pay federal, state, and local taxes in 2008, according to the Tax Foundation.

This year, April 23rd is “Tax Freedom Day,” the day on which the average American will start working to keep their hard earned money for themselves. Tax Freedom Day in 1910 was January 19th, when taxes were just 5 percent of a person’s income.  Now, as the Tax Foundation points out, Tax Freedom Day is three months later, and taxes are nearly 31 percent of a person’s income.

Americans still spend more time working to pay taxes to all levels of government than they do for their combined spending on medical expenses, food and clothing. Just because you’ve filed your federal income tax return, don’t think you’re done paying federal taxes this year. Throughout the year, you will continue paying more federal taxes every time you fly on an airplane, make a phone call, or fill up your gas tank. These additional tax burdens cost the average American roughly $500 per year.

Ensuring Access to Student Loans

Last week I voted for H.R. 5715, the Ensuring Continued Access to Student Loans Act of 2008. This legislation increases student loan limits within the Federal Family Education Loan (FFEL) program by $2,000. This increase is intended to offset any reduction in the availability of private student loans in the marketplace. In addition, this bill would give the Department of Education temporary authority to purchase loans from private lenders and transfer those loans to the government’s Direct Loan program. This temporary authority would expire in June 2009 and is intended to help supply loan capital to meet the demand for student loans this year.

All in all, while this legislation does not fix the problem, it is one step to help stabilize the student loan market.  There must be other steps taken to address the growing concerns of the lack of liquidity in the student loan market which is why I am cosponsor of H.R. 5723, the Emergency Student Loan Market Liquidity Act. This bill would provide new liquidity in the student loan market by allowing the Federal Home Loan Banks to invest surplus funds in student loan securities and accept student loans and student loan related securities as collateral. Additionally, the bill would provide secured long-term advances to member banks so that they can finance the origination of student loans or purchase or finance student loan related securities. I believe this legislation would provide some stability in the in the student loan market and assure that students not only in Texas, but across the United States, will continue to have access to students loans for the coming school year.

As always, when events unfold in Washington, I will be sure to update you. In the meantime, do not hesitate to visit my website at www.randy.house.gov or call my office toll free district wide at (888) 763-1611 or my Washington, DC office at 202-225-4005.

--Randy