House to Vote on Ex-Im Bank Despite Conservative Opposition
The US House of Representatives will soon vote to reauthorize the Export-Import Bank despite the objection of key Congressional leaders including House Financial Services Chairman Jeb Hensarling (R-Texas) and Majority Leader Kevin McCarthy (R-CA). Pro Ex-Im members of Congress are utilizing a rarely used procedural tactic that bypasses the Committee process and regular order, and gives power back to the Democrat minority.
While the bank may have once been important to protecting American business, today it has been reduced to nothing more than a taxpayer-funded slush fund amid countless cases of waste, fraud, and abuse.
Time and time again, Ex-Im has been tied to cases of fraud and corruption, resulting in countless indictments and millions in lost taxpayer funds. Most recently, the bank contributed millions to a Ponzi scheme perpetrated by a Miami small business. In fact, in the past six years alone, the Ex-Im Bank has been involved in numerous scandals culminating in 85 criminal indictments, 48 criminal judgments, and over $250 million in fines, restitution, and forfeiture.
Worse still, it is estimated that the bank’s reckless loans could cost taxpayers as much as $2 billion in the next ten years.
When the bank expired back in June, supporters attempted to tie reauthorization to must-pass, unrelated highway funding legislation in the Senate. Despite these efforts, the House held firm and took up clean highway funding. Since then, supporters of the bank have undertaken a campaign to reauthorize the bank, relying on scare tactics that link Ex-Im to small businesses.
Supporters of the Ex-Im bank claim that it supports small business, however it defines a small business as having 1,500 employees or less. This definition is generous at best -- most government agencies define a small business as one-third that size, just 500 employees.
Using more accurate statistics demonstrates that the bank’s impact is far more limited than supporters claim. According to White House data analyzed by Veronique de Rugy of the Mercatus Center, Ex-Im supports just 0.28 percent of small businesses and just 0.42 percent of total exports.
The Ex-Im Bank no longer serves its original purpose of helping small businesses. Congress must protect taxpayer dollars and refuse to reauthorize Ex-Im.
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Alexander Hendrie: your article is downright wrong showing you have a limited understanding of the export business. Take it from the small business executive with 37 yrs of export experience. The wrongdoings of US EXIM are highly exaggerated. Let me tell you it is way less then 0.5%. The Bank is performing way much better and creating much more jobs in the USA than you present. Suggest you read this article which is more to the tune of "corporate welfare" as some republicans tent to present. nytimes.com/2015/10/11/opinion... - that's more like it. Besides your "estimation that the bank’s reckless loans could cost taxpayers as much as $2 billion in the next ten years" is just your perception. I am just wondering where did you get such information? Did you already looked up the future books? You are just speculating! The whole opposition to the US EXIM Bank reauthorization is nothing, but a speculating maneuver to push a neocon agenda (and this is not a speculation!) for political gain and more votes. No wonder the Republican Party (I am a Republican) is in shambles. It's called - moving jobs to China and other countries. Below is a short summary from a letter sent to our local Congressman/woman: Hoffman International, Inc. /Piscataway, NJ 08854 is a small domestic/ export equipment distributor. We have on hand a signed Contract for US$73.0 mil dollars by a customer in Cameroon to supply a package of lifting and construction equipment. That Contract has been technically and commercially approved right before US EXIM Bank was shut down due to lapse in Congressional reauthorization. For the past 90 + days Hoffman has been battling for this important transaction to us and 45 US manufacturers and various suppliers around the country. This deal is now in jeopardy to be taken over by our competitor SHANTUI/China, The competition insists on taking over Hoffman's transaction for the simple fact we are unable to provide US EXIM Bank coverage as conditioned by customer. 80 of Hoffman's employees and about a thousand manufacturers and various service providers’ jobs are at stake here. We are in the11th hour of losing this Contract and requested Congress to take urgent action on Ex-Im reauthorization to keep the jobs here at home. Don't let these jobs be taken over by China! The US Embassy in Cameroon is fully aware of that situation. All supporting documents to this statement and transaction information is available on request. We know your publication as well as The Heritage Foundation, The Club for Growth, and the Koch Brothers don't have to look working people in the eyes! But you should and the Republican tea party splinter should and will comes next November and maybe even sooner.