Republicans Introduce Bill to Prevent Euro Bailout

Republicans in Congress are trying to prevent a Euro bailout, and recently introduced a bill to make it a law not to help the European Union. The legislation presses European countries with financial struggles – such as Greece – to get fix their own financial problems instead of looking to American taxpayers for help.

"This legislation would require that countries, like Greece, cut spending and put their own fiscal house in order," says U.S. Congressman Mike Pence, backed up by other members of the House GOP, "instead of looking to the United States for a bailout. We face record unemployment and a debt crisis of our own, and American taxpayers should not be forced to bear the risk for nations that have avoided making tough choices."

The full release is below the fold, with the detail that the bill "does not permanently prohibit the IMF from lending" to the troubled counties. Nevertheless, Ezra Klein is not a fan of this proposal.

U.S. Congressman Mike Pence, Chairman of the House Republican Conference, joined Conference Vice-Chair Cathy McMorris Rodgers, Ranking Member of the House Appropriations Committee Rep. Jerry Lewis, Rep. Jeb Hensarling, and Rep. Kay Granger in introducing legislation today to stop U.S. tax dollars from being used by the International Monetary Fund (IMF) for bailouts for European countries. Rep. Pence released the following statement today as the European Bailout Protection Act was introduced:

“The American people are fed up with taxpayer-funded bailouts and deserve to know we are bailing out Greece and possibly other European countries. If the Obama Administration has its way, the U.S. will contribute to a nearly trillion dollar bailout of European countries with economic crises that are a direct result of wasteful government spending.

Continue reading at Washington Post.com…

Carbon Tax: The French Connection

Last week, European finance expert Éloi Laurent published a new paper on the new French carbon tax (Carbon Tax: The French Connection, The Economists' Voice: Vol. 6 : Iss. 13, Article 2 {2009}). You can find the abstract from his article below via Tax Prof, or download the full PDF by clicking here.

In early 2010, France will introduce a carbon tax, becoming the largest economy in the world to do so. According to Éloi Laurent, the introduction of a carbon tax in France is a good example that ecologically efficient and socially fair solutions do exist to curb climate change, but that it takes public pedagogy, sound economic reasoning and above all political courage to bring them into being.

Wave of Layoffs In U.S., Europe Show Severity of the Recession

From USA Today:

Household names such as Caterpillar, (CAT) Home Depot (HD) and Sprint Nextel (S) said Monday that they are laying off a combined 35,000 workers in moves that stressed the severity of the worldwide recession and kicked off what is likely to be a week of gloomy earnings announcements, further job cuts and dismal data.

The layoffs continued Tuesday as Corning said it is cutting 3,500 jobs, or 13% of its payroll.

The news ratchets up the pressure on the Obama administration and Congress as lawmakers debate an $825 billion stimulus package intended to save or create millions of jobs. Far more job cuts are likely as consumer and business spending tumbles amid what many economists say is the worst recession the USA has seen since the Great Depression.

"Some of the worst job losses are ahead of us, not behind us," says Wells Fargo senior economist Scott Anderson.

STATE UNEMPLOYMENT RATES: Indiana, S. Carolina see largest increases; see rates for all 50 states

He expects 3 million Americans to lose their jobs in 2009 — up from the 2.6 million who were cut last year, which was the most since 1945, the final year of World War II. The layoffs are happening in "all industries in all areas of the world," Anderson says. "This will be one of the worst job markets in the postwar period."