Sodrel, Hill voice opposition to bailout bill

Both Indiana 9th district congressional candidates, incumbent Democrat Baron Hill and Republican challenger Mike Sodrel, declared their opposition Monday to a failed $700 billion plan to rescue collapsing financial firms.

The bailout bill was endorsed by President Bush, congressional leaders and presidential candidates Republican John McCain and Democrat Barack Obama. But it was defeated Monday in the House of Representatives, 228-205, and Hill was among those who voted against it.

In a press release, Hill cited Congress’ need for more time to evaluate the economic situation and the possible consequences of the proposed borrowing of such a large sum of money.

“I voted against the measure because I believe Congress and the American public have not had the appropriate time to review this massive proposal,” he said. “My constituents need time to evaluate how this will affect their retirement and college savings.”

In another statement, Hill suggested the need for Congressional investigation and alternative proposals to the “unprecedented bill” put forth by Bush and Treasury Secretary Henry Paulson.
 
“Congress should have the opportunity to consider all the possible options, and take the time to understand the results of this large taxpayer investment,” Hill said.

He also pointed out the need for more accountability on Wall Street.

“I look forward to continuing our work on this proposal,” Hill said. “We need more accountability for the financial industry that led our country into this crisis. We need to restore actual confidence in the financial markets to prevent knee-jerk reactions.” 

In a statement, Sodrel was more pointed in his criticism of the rescue plan.

“Government acquisition of private enterprises when it occurs by ballot is called socialism. ... When it occurs by bullets (it) is called communism,” Sodrel said in the statement. “There is little difference in the end result. The former is just less violent than the latter.”

Sodrel said the bailout bill would threaten the Constitution if enacted, and it would place taxpayers into more than $10 trillion of debt. 

“The United States Constitution is a document designed to limit the power of our government,” he said. “To give virtually unlimited power to a cabinet secretary would have to create constitutional issues, not to mention poor judgment.”

As an alternative, Sodrel said he supported “an immediate suspension of the Capital Gains Tax for a period of two years, an increase in Federal Deposit Insurance Corporation deposit insurance and suspension and/or modification of ‘mark to market’ accounting rules.”

“I’m certainly open to discussing other options that do not require the taxpayer to borrow $700 billion,” Sodrel said.

Meanwhile, Hill said he has yet to detect any consensus on the proposal among his constituents, which is why he plans to spend more time traveling around his district speaking with those he represents.

“I have talked with everyone from bankers to neighbors,” Hill said in a statement, “and there is no one position that stands out amongst them all.”

Hill said he will spend the next few days evaluating the needs of his constituents.   
One of his first stops will be today from 5:30 to 6:30 p.m. at the Bloomington City Hall Atrium, located at 401 N. Morton St. Hill will discuss the current economic crisis with residents and listen to concerns and suggestions about how to proceed.