Grassley Issues Statement Opposing Bond Subsidies
Mar 12, 2010
Shortly after the House passed its version of a "Jobs Bill," the Hiring Incentives to Restore Employment Act (HIRE), on Thursday, March 4th, Senator Charles Grassley (R-IA) issued a statement highly critical of expanded bond provisions contained in the bill. The House bill, like the Senate-passed version, would permit Qualified School Construction Bonds (QSCBs), Clean Renewable Energy Bonds (CREBs), Qualified Zone Academy Bonds (QZABs), and Qualified Energy Conservation Bonds (QESBs) to be issued as direct payment bonds, but would maintain subsidies commensurate with the current tax credit rate, i.e., 100% of interest costs for QSCBs and QZABS and 70% for CREBs and QECBs. Grassley argues that the banks would "skim the cream" from the subsidies, which he claims will cost $2 billion more than the Senate-passed Jobs Bill. Grassley commented, "With its vote today, the House has one-upped the Senate majority on directing more money to profits for big Wall Street banks, while claiming to pass legislation to create jobs."
The Senate is expected to vote on a final Jobs Bill sometime in the next week.