Adrian Smith votes against economic bailout package

When it came to voting for the $700 billion economic bailout package vote by the House Friday, Rep. Adrian Smith, R-Neb., voted no.

It was the second time Smith has cast a no vote on the bailout package. On Monday, the House defeated a $700 billion bailout package that had been hammered out by House, Senate and White House negotiators over the weekend.

The Senate approved its package $700 billion package on Wednesday. Both Sen. Ben Nelson, D-Neb., and Sen. Chuck Hagel, R-Neb., voted for the package. The package also contained and additional $110 billion in tax and spending provisions.

That package was sent to the House, where on Friday where it passed 263 to 171. When it was defeated on Monday, the vote was 205 for and 228 against.

Smith said it was not an easy decision to make.

"I have friends and colleagues who I respect deeply who are on both sides of this issue," he said. "I have heard from Nebraskans of all ages, from financial industry experts, and community leaders. I appreciate their input."

Smith said that while the bill was improved from the legislation he voted against earlier this week, "it is still short of workable legislation which will help correct our economy."

"Congress owes the American people more than political sweeteners and rushed deadlines -- which rarely result in legislation we can be proud of," Smith said.

He said this wasn't an "either-or" situation. 

"Instead of greatly increasing our national debt by over $700 billion, we should instead be looking at proposals to make tax credits available to private investor groups which agree to purchase bad loans," he said. 

What Smith is proposing is reducing corporate and capital gains taxes, which he says would encourage capital formation and boost asset values. Smith said he would also look at breaking up Fannie Mae and Freddie Mac, similar to what Congress did with the Bell telephone company. 

"But because this legislation was negotiated by just a few members and brought to the floor with no possibility of amendment, these ideas were not even debated," Smith said. "We didn't have a single congressional hearing. Instead, we rushed to bring a bill which does exactly what we shouldn't be doing –-- adding a crushing financial burden to American taxpayers."

 Smith said the bill authorizes the treasury secretary to spend up to $700 billion to relieve faltering banks and other firms of bad assets backed by home mortgages, which are falling into foreclosure at record rates. 

But Smith said the plan also contains amendments added by the Senate providing $192 million over 10 years for rum excise taxes to Puerto Rico and the Virgin Islands, $100 million over 10 years for motorsports race track properties, and $81 million over 10 years to encourage film and television productions in the United States.