TARP must have an expiration date (Rep. Jerry Moran)

As the government continues spending money and building an unprecedented U.S. debt, I introduced the Government Ownership Exit Plan Act of 2009. This is companion legislation to a bill introduced in the Senate by Sen. John Thune that sets a date to remove the federal government from its ownership of private companies.

By July 1, 2010, the government will be relieved of it’s ownership of private entities that it acquired under the Troubled Asset Relief Program (TARP) and will require the U.S. Treasury Department to sell any government ownership stake, such as warrants, preferred stock, or common stock, from a private entity. If the Treasury Secretary determines the assets are undervalued AND there is a reasonable expectation that the assets will increase to their original purchase value, the Secretary may hold the assets for up to one additional year. What’s more, this bill prohibits the government from making any management decisions for the private businesses in which it already has an ownership interest.

Government interference with private sector affairs has long passed an expiration date. No good has ever come from such massive government intrusion in the private sector. This was again validated when we examine the results from TARP.

I am one of 17 members of Congress who voted against every bailout for Wall Street, numerous banks and American International Group (AIG), Inc. Congress voted to give these private entities government funds, and by doing this, we violated principles that we know work, principles of an economy.

The Obama Administration is resolute in leading government interference in private business and its involvement is compromising the business sector.

Congress does need to address the country’s economic circumstances, however, those ultimately paying for private sector mistakes have been the American taxpayers. The Government Ownership Exit Plan will halt further irresponsible use of taxpayers’ dollars.