A Weekly e-Newsletter from
Senator Johnny Isakson (R-GA)

May 22, 2009

Dear Friends,

This week, Congress passed and the president signed into law a financial fraud bill that includes my proposal to create a Financial Crisis Inquiry Commission charged with fully investigating the causes of the near collapse of our financial markets and our economy.

U.S. Senator Kent Conrad, D-N.D., and I originally introduced legislation in January 2009 to examine the causes of the current economic crisis. On April 22, the Senate overwhelmingly passed an amendment we introduced to the Senate’s version of the financial fraud bill that would create a Financial Crisis Commission.

On May 6, the House of Representatives passed the financial fraud bill, including the Financial Crisis Commission, with amendments by a vote of 367 to 59. On May 14, the Senate, on a unanimous consent motion, agreed to relatively small changes to the bill and sent it back to the House. On May 18, the House agreed to the Senate’s changes and sent the bill to President Obama for his signature.

The 10-member, bipartisan Financial Crisis Commission will have until December 2010 to investigate all the circumstances that led to this financial crisis. The panel will have subpoena power and will have the authority to refer to the U.S. Attorney General and state attorneys general any evidence that institutions or individuals may have violated existing laws. At the end of its investigation, the Commission will report its findings and conclusions to the Congress and the President.

This bipartisan Commission will be appointed by Democrats and Republicans in Congress. The Speaker and Senate Democratic Leader would choose the commission’s chair. The Senate and House Republican Leaders would select the vice-chair. Members of Congress as well as federal and state employees would be prohibited from serving on the Commission.

This is a great day for the American people, who demand and deserve some answers. I’m pleased the President understood the importance of signing this bill into law quickly so we can get those answers to what caused this financial collapse. We need a forensic audit of the damage to the financial markets and our economy so we can find out where mistakes were made and ensure we don’t make them again.

Housing Tax Credit to the Fiscal Year 2009 Budget Supplemental Spending Bill
On Wednesday, I continued my push to stimulate the nation’s declining housing market by introducing an amendment to the Fiscal Year 2009 Supplemental Appropriations bill that would expand the current $8,000 homebuyer tax credit to include all individuals who purchase a home in the next year.

Specifically, my amendment would expand the current $8,000 homebuyer tax credit so that it applies to any buyer of any home, not just first-time buyers. The amendment also would eliminate the income caps of $75,000 for an individual and $150,000 for a couple under the current tax credit so that there is no income limit for eligibility. Finally, the amendment would extend the tax credit to June 10, 2010, and would still allow homebuyers to claim the credit on their 2008 tax return.

By removing the income and first-time buyer restrictions from the current homebuyer tax credit, I am confident many more buyers will take advantage of this tax credit and we will have a significant improvement in the housing market and in our economy.  As has happened in 1968, 1974 and 1990-1991, housing took America into a recession and it was only when the housing market recovered that the America economy improved. 

Unfortunately, the amendment, along with a number of other amendments, was ruled non-germane once cloture on the overall legislation was approved. However, I am not giving up and will continue to look for ways to expand the tax credit to all homebuyers regardless of income.  

Fiscal Year 2009 Budget Supplemental Spending Bill
Also this week, the Senate passed a supplemental spending bill for fiscal year 2009. Last week, the Senate Appropriations Committee approved $91.3 billion legislation, which includes money to fund the wars in Iraq and Afghanistan as well as funding for various foreign aid and international stabilization programs and pandemic flu preparedness.

The Senate version also proposed $80 million for President Obama’s effort to close the prison at Guantanamo and transfer the detainees off the base. Guantanamo houses enemy combatants ranging from terrorist trainers and recruiters to bomb makers, would-be suicide bombers and terrorist financiers. Many are members of al Qaeda, related terrorist networks, or the Taliban.

Fortunately, this effort was stopped by the Senate.  It would be a terrible mistake to bring these hardened terrorists to the United States as some members of Congress have proposed. U.S. policy is to treat all detainees humanely, and in many cases enemy combatants are afforded more due process than required by the Geneva Convention. Guantanamo provides highly structured and disciplined detention and interrogation operations. Furthermore, any credible allegations of abuse are investigated aggressively, and individuals are held accountable for their actions.

Recent reports of former Guantanamo inmates rejoining terrorist groups increases my frustration with President Obama’s decision to close Guantanamo and only highlights the danger that these inmates pose to our country’s security. We must use the intelligence we obtain from enemy combatants as a resource to strengthen homeland security and effectively fight the Global War on Terror. We should continue to look at ways to improve procedures and better manage detainees who pose a lethal threat to the civilized world.

Supreme Court
On May 1, Supreme Court Associate Justice David Souter informed the White House that he would retire at the end of the court’s term in June. It is expected that President Obama will nominate a replacement next week.

Whoever the nominee, I look forward to a thorough examination and debate of his or her credentials in the Senate.  A qualified judge is someone who does not legislate from the bench.

What’s on Tap?

Next week the Senate will recess for the Memorial Day observance.  I ask you to join me in saying a prayer for the families that have lost a loved one in service to our nation over the last year, and to tell a servicemember ‘thank you’ for his or her many sacrifices on behalf of our nation.  As the Ranking Member on the Senate Subcommittee on African Affairs, I will travel next week to Africa, where I will visit countries – including Sudan – that receive U.S. aid to see the progress as a result of that aid, as well as meeting with non-governmental organizations such as Atlanta-based CARE and meeting with Peace Corps volunteers.

Sincerely,
Johnny Isakson