Lowden’s Economic “Plan” Doesn’t Let Facts Get in the Way
This week, Sue Lowden released what she claims to be a “plan” for economic recovery that is chock full of half-truths, ridiculous claims and false attacks that offer nothing more than undeniable proof that she is willing to turn a blind eye to any fact that doesn’t fit the narrative of her campaign.
The reality is that Harry Reid is working harder than ever, leveraging his clout as Senate Majority Leader, to help lift Nevada’s economy out of this recession. Whether it’s passing more than a trillion dollars in tax relief, working to relieve Nevada’s housing crisis or fighting for Nevada’s industries and putting Nevadans back to work, Harry Reid is fighting for Nevada’s families and businesses. And he’s delivering.
TAX RELIEF
LOWDEN’S TAX CUTS AFFECT FEW NEVADANS…AND SHE CAN’T EXPLAIN HOW THEY’RE PAID FOR
Lowden’s so-called “plan” for economic recovery proposes massive cuts in taxes – many of which like capital gains and the estate tax would overwhelmingly benefit only a small segment of Nevada’s population.
In fact, the Urban Institute says that the overwhelming majority of capital gains taxes are paid by individuals earning more than $200,000 a year. [Urban Institute, 7/31/08] Additionally, the estate tax impacts only a few Nevadans. According to the IRS, only 119 Nevada estates were subject to the estate tax in 2007, and in 2008, only 140 Nevada estates were subject to any tax. [IRS, Estate Tax By State, 2007, 2008]
REID HAS PASSED MORE THAN $1 TRILLION DOLLARS IN TAX RELIEF FOR NEVADANS
As Senate Majority Leader, Sen. Reid passed more than $1 trillion dollars in tax cuts for Nevada in the following legislation:
The 2008 Economic Stabilization Package provided $150 billion in tax relief, extended Nevada’s sales tax deduction and provided solar tax credits that could create as many at 41,000 Nevada jobs. [US Conference of Mayors, 10/13/08; Associated Press, 10/1/08; Solar Energy Industries Association, Press Release, 10/3/08]
The American Recovery and Reinvestment Act provided $282 billion in tax relief, one of the largest tax cuts in American history, which put $500 million back into the pockets of more than 1 million hardworking Nevadans. [New York Times, Economic Stimulus, White House Report, 4/22/08]. Additionally, the Recovery Act provided tax cuts or credits to seniors, disabled veteran, disabled workers, the unemployed, college students, parents, homebuyers, families hit by the Alternative Minimum Tax, and small businesses [Democratic Policy Committee, 2/11/09]. Rosemary Vassiliadis confirmed that the Alternative Minimum Tax provision within the Recovery Act kept the $2.4 billion construction project of Terminal 3 at McCarren International Airport on track. [Review-Journal, The Political Eye, 1/13/10]
The FY 2010 Budget that Sen. Reid led to pass cuts taxes by $764 billion over the next five years. [Knight Ridder, 4/28/09} This includes three years of relief from the Alternative Minimum Tax for middle-income taxpayers, devotes $512 billion over five years to extend the Bush tax cuts for middle-class workers, investors, and families with children, and made the sales tax deduction permanent in Nevada. [New York Times, 4/29/09; Associated Press, 4/30/09; McClatchy News, 4/29/09]
Sen. Reid also passed legislation to include the Homebuyer Tax Credit and tax credits for small businesses worth $26 billion in relief. The Homebuyer Tax Credit would extend $8,000 first-time homebuyer tax credit and creates a new $6,500 credit for homebuyers who have been in their current residence for the last five years or more. The business tax provision allows businesses that had operating losses in 2008 and 2009 to seek refunds for taxes paid on profits over the past five years. According to the New York Times, the cost of extending and expanding the homebuyer tax credit would bring roughly $11 billion in relief. The Joint Committee On Taxation estimated the Net Operating Loss provision would cost more than $15 billion over five years. [Washington Post, “Capitol Briefing,” 11/4/09; Congressional Record, 11/4/09; New York Times, 11/4/09; Joint Committee On Taxation, 11/3/09]
REID HAS BEEN FIGHTING FOR TAX FAIRNESS FOR NEVADA FOR DECADES; REID SUCCESSFULLY ENDED OUT-OF-STATE “SOURCE TAXES” ON NEVADA’S RETIREES
Sen. Reid successfully ended the out-of-state “source taxes” on Nevada retirees. In 1991, Rep. Barbara F. Vucanovich (R-Nev) and Sen. Reid reintroduced legislation that would outlaw this tax. [Washington Post, 3/27/91] In 1995, Sen. Reid passed the source tax ban, prohibiting states from taxing pension income of former residents who live in another state. [Los Angeles Times, 12/23/95]
JOB CREATION
NEVADA’S KEY INDUSTRIES HAVE NO STRONGER CHAMPION IN WASHINGTON THAN HARRY REID
Sen. Reid has a proven track record standing up for the industries that Nevada counts on for job creation and growth:
MINING: In the Senate, Sen. Reid has worked tirelessly to protect mining jobs. In fact, when describing the 2009 state legislative session, J. Patrick Coolican and David McGrath Schwartz wrote in their 2009 column, “The only real winner of the session? That would be mining. With the help of more than two dozen lobbyists, and an assist from U.S. Sen. Harry Reid, who made it known he wanted mining protected, the industry’s record-breaking profits did not lead to a tax increase.” [Las Vegas Sun, Coolican/Schwartz Column, 6/7/09]
GAMING: Sen. Reid has always been a strong ally of the gaming industry. In fact, he helped save CityCenter, which kept 10,000 construction workers on the job and now employs 12,000 workers. [Las Vegas Sun, 3/23/09] Furthermore, Sen. Reid personally inserted a debt cancellation provision into the Recovery Act that protected Harrah’s 31,000 employees. [Las Vegas Sun, Brian Greenspun Column, 11/8/09]
CLEAN ENERGY: Sen. Reid is committed to ensuring Nevada takes advantage of its natural resources like solar and wind to lead the nation in clean energy technology that will create jobs and break our dependence on foreign oil. Last year, he worked with the Interior Department to get Nevada clean energy projects fast-tracked for development on public lands, speeding reviews and identifying prime zones for renewable energy projects. [Las Vegas Sun, 6/29/09] Additionally, Sen. Reid personally inserted provisions into the Recovery Act that are allowing historic investment in Nevada Energy Transmission projects. This includes a $3.2 billion provision that Sen. Reid championed that gives power companies in Nevada and other states access to low-cost government loans to build transmission lines that carry renewable energy. [Las Vegas Sun, 3/8/09]
TOURISM: Sen. Reid has always understood the important role that tourism plays in Nevada’s economy. That’s why he is fighting to pass a Travel Promotion Act (S 1023) to help bolster the tourism industry by bringing in more foreign visitors. The legislation would create a nonprofit corporation to promote visits to the United States. [CQ Politics, 6/8/09]
LOWDEN CLAIMS SHE WANTS TO INVEST IN CLEAN ENERGY…BUT OPPOSED LEGISLATION MAKING THOSE INVESTMENTS IN NEVADA
In Sue Lowden’s economic recovery “plan”, she states her opposition to the Recovery Act. However, the Recovery Act includes millions of dollars of investments in clean energy technology for Nevada that will create jobs:
$12 Million For Geothermal Projects At Hawthorne Army Depot And Fallon Naval Air Station Will Create More Than 200 Jobs. [Gazette-Journal, 4/16/09]
$61.5 Million for Enel Green Power For Geothermal Projects. [Northern Nevada Business Weekly, 10/12/09]
$138 Million For NV Energy For Smart Grid Energy Technology That Will Create 200 Jobs. [Review-Journal, 10/27/09; Department of Energy, Smart Grid State Breakdown]
More Than $90 Million For 25 Nevada Geothermal Projects To Create Nearly 1,100 Nevada Jobs. [Review-Journal, 10/29/09; Reid Press Release, 10/29/09]
Recovery Act-Funded NV Energy Transmission Line To Create Around 400 Jobs. [Review-Journal, 1/12/20]
CONTRARY TO LOWDEN’S RIDICULOUS CLAIM, REID WAS ANYTHING BUT SILENT ABOUT PRESIDENT OBAMA’S COMMENTS IN ELKHART
Following President Obama’s seemingly discouraging remarks regarding corporate travel to Las Vegas, Sen. Reid immediately asked for clarification. Reid said, “I have spoken with President Obama’s chief of staff, Rahm Emanuel, about the President's remarks. He made it clear to me that the President's criticism was aimed at the potential use of taxpayer funds for junkets, and in no way reflects his thoughts about any one particular city.” [Reid Press Release, 2/11/09] In fact, following Reid’s inquiry, 12 agencies released letters indicating they would not discriminate against Las Vegas when selecting meeting destinations. [Review-Journal, 9/15/09]
ONLY SUE LOWDEN HAS HISTORY DISCOURAGING TRAVEL TO LAS VEGAS
In a January 2010 column, John L. Smith wrote, “In an attempt to keep my jaw from hitting the floor, I asked Lowden to clarify. ‘I think we need to do whatever it takes to make it safe,’ she said. ‘You're saying it's not safe now?’ I asked. ‘Well, I don't think it's safe,’ Lowden said. ‘There's a lot of people who are very frightened, like we were talking about, who will not get on a plane right now because they are frightened of what's going on and the possibility of people slipping through the cracks. It's frightening.’” [Review-Journal, John L. Smith Column, 1/12/10]
SPENDING
LOWDEN RAILS AGAINST THE BAILOUT, BUT SAYS SHE MAY WELL HAVE VOTED FOR IT HAD SHE BEEN IN THE SENATE.
On January 15, the Nevada Appeal reported, “Lowden had different reactions to the bank bail-out legislation and the stimulus package. On bail-out spending: ‘It's easy to say, no, I wouldn't have voted for it. But people were panicked, we were facing collapse — that's what they were saying. It's easy to say from a distance I would have voted no, but I can't do that.’ On the stimulus, she said she would have been a definite no.” [Nevada Appeal, 1/15/10] In fact, Lowden went ever further to defend her position, citing other conservatives like Sens. John Thune, Mitch McConnell, John Cornyn, and Tom Coburn who all supported the legislation. [Lowden Campaign Blog Post, 1/18/10]
WHAT’S MORE, SUE LOWDEN SERVED ON THE NEVADA BOARD OF DIRECTORS OF COLONIAL BANK, WHICH APPLIED FOR BAILOUT FUNDS
Sue Lowden Was A Paid Member Of Colonial Bank’s Nevada Board Of Directors. In an amendment filed to her personal financial disclosure, Sue Lowden listed “Colonial Bank Advisory Board” as a position held from June of 1998 to February of 2009. Lowden also disclosed a $350 fee for her roles on the Colonial Bank Advisory Board under her sources of income. Sue Lowden was listed among the names of the Nevada Board of Directors in the bank’s report to shareholders for the year ended December 31, 2007. [Lowden Amended Financial Disclosure, 12/16/2009; Colonial BancGroup 2007 Annual Report]
Lowden’s Company Maintained $29 Million Line Of Credit With Colonial. According to an SEC filing submitted in the wake of Colonial Bank’s collapse, Sue and Paul Lowden guaranteed a $29,000,000 line of credit between their casino company, Archon Corporation, and Colonial Bank. This line of credit was extended by BB&T when BB&T took over the collapsed Colonial Bank. [Archon Corporation Current Report Form 8-K, Exibit 99.1, 9/2/2009]
Colonial Bank Applied For TARP Funds. In November 2008, Colonial BancGroup issued the following statement in a press release: “The Colonial BancGroup, Inc. is making the following announcement in order to correct what it perceives to be misinformation in the market place. Colonial has, in fact, applied for participation in the TARP Capital Purchase Program. Its application was delivered to the FDIC in a timely manner. While assurances cannot be given as to the outcome of the application, Colonial has been given no information that would lead it to doubt that its application is not being processed through the normal channels. At this time, it is not possible to project when we will receive an answer to the application.” [Colonial Bank Press Release 11/13/2008]
Department Of Justice Investigated Colonial For Possible Criminal Violations And “Suspect Accounting.” According to an August, 2009 article in the Orlando Sentinel, “Colonial Bancgroup confirmed Friday that it is being investigated by the Justice Department for possible mortgage-related criminal violations and by the Securities and Exchange Commission for suspect accounting practices tied to its request for federal bailout money.” [Orlando Sentinel, 8/7/2009]
THE BAILOUTS ARE WORKING
Despite Lowden’s inconsistencies on bailouts, even Senate Republican Leader Mitch McConnell stated that TARP “succeed in stabilizing the banking system”. [Politico, 10/5/09] In fact, the Treasury Department is anticipating much smaller losses on TARP, expecting to recover all but $42 billion of the $370 billion it has lent to companies. [New York Times, 12/7/09] This was confirmed by Federal Reserve chairman Ben Bernanke who indicated his confidence saying, “I do believe we're going to get back all the money, and indeed we'll be showing for the taxpayers fairly significant extra income.” [CNN Money, 12/9/09]
LOWDEN’S “PLAN” IS SILENT ON PRESIDENT OBAMA’S PROPOSED BANK REFORMS
Sen. Reid has praised the new proposed bank regulations, citing their protections for consumers and the marketplace. He said, “We can no longer afford for financial institutions to get away with risky bets that endanger our entire economy or gamble away money that middle class families depend on to send their children to college and allow them to retire. I appreciate the President’s commitment to end business as usual on Wall Street and restore fairness and sensibility to the marketplace.” [Review-Journal, Political Eye, 1/21/10]
LOWDEN’S ATTACK OVER FEDERAL SPENDING IN NEVADA IGNORES FACTS, WAS PREDICTED BY THE REVIEW-JOURNAL
The Review-Journal has already stated that the Republican attacks on Sen. Reid regarding federal dollars are disingenuous. According to the report, much of the money from the feds comes in the form of matching state spending. If state elected officials are stingy, the feds don’t send as much money … Still, it’s a good bet ads attacking Reid will skip the nuance and hone in on two words. Dead last.” [Review-Journal, 8/17/09] This was confirmed by the Reno Gazette-Journal when it reported that Nevada doesn’t get more federal money because Carson City won’t commit to spending what it takes to qualify for it. [Gazette-Journal, 4/29/08]
REID DOES MORE TO MAKE UP FOR NEVADA’S FEDERAL FUNDING SHORTFALL THAN ANY OTHER MEMBER OF THE DELEGATION
To make up for Carson City’s shortcomings, Sen. Reid consistently delivers more federal dollars than the rest of the Nevada Congressional Delegation combined. [Las Vegas Sun, 3/12/08; Las Vegas Sun, 2/24/08]
LOWDEN WOULD TIE ONE HAND BEHIND NEVADA’S BACK BY SWEARING OFF EARMARKS
In January 2010, the Review-Journal reported, “Lowden spokesman Robert Uithoven disputed Tarkanian, saying there is little daylight between the two GOP candidates on earmarks. Uithoven said Lowden also would forego earmarks for Nevada, but would otherwise push to increase the federal spending sent to the state through programs that distributed funds through various formulas. [Review-Journal, 1/21/10]
LOWDEN IGNORES THE FACTS ON FEDERAL LAND OWNED BY NEVADA
Sen. Reid worked tirelessly to get Nevada’s counties full compensation for property taxes lost from federal lands. In Associated Press reported that Sen. Reid’s legislation ensured that a record $23 million in federal payments would be made to Nevada counties in 2009 to offset losses in property taxes for nontaxable federal lands within their boundaries. [Associated Press, 6/15/09]
In October 2008, the Gazette-Journal reported, “There's good news for Nevadans in the Emergency Economic Stabilization Act passed Wednesday by the Senate as thousands of resident would receive major tax benefits in the package … Rural Nevada would see major benefits from full funding of the Payment In Lieu of Taxes program through fiscal year 2012 and reauthorization of the Secure Rural Schools program through 2011 with a significant formula change that will bring tens of millions of dollars in new money to Nevada's rural communities.” [Gazette-Journal, 10/3/08]
Lowden’s Economic “Plan” Doesn’t Let Facts Get in the Way
This week, Sue Lowden released what she claims to be a “plan” for economic recovery that is chock full of half-truths, ridiculous claims and false attacks that offer nothing more than undeniable proof that she is willing to turn a blind eye to any fact that doesn’t fit the narrative of her campaign.
The reality is that Harry Reid is working harder than ever, leveraging his clout as Senate Majority Leader, to help lift Nevada’s economy out of this recession. Whether it’s passing more than a trillion dollars in tax relief, working to relieve Nevada’s housing crisis or fighting for Nevada’s industries and putting Nevadans back to work, Harry Reid is fighting for Nevada’s families and businesses. And he’s delivering.
TAX RELIEF
LOWDEN’S TAX CUTS AFFECT FEW NEVADANS…AND SHE CAN’T EXPLAIN HOW THEY’RE PAID FOR
Lowden’s so-called “plan” for economic recovery proposes massive cuts in taxes – many of which like capital gains and the estate tax would overwhelmingly benefit only a small segment of Nevada’s population.
In fact, the Urban Institute says that the overwhelming majority of capital gains taxes are paid by individuals earning more than $200,000 a year. [Urban Institute, 7/31/08] Additionally, the estate tax impacts only a few Nevadans. According to the IRS, only 119 Nevada estates were subject to the estate tax in 2007, and in 2008, only 140 Nevada estates were subject to any tax. [IRS, Estate Tax By State, 2007, 2008]
REID HAS PASSED MORE THAN $1 TRILLION DOLLARS IN TAX RELIEF FOR NEVADANS
As Senate Majority Leader, Sen. Reid passed more than $1 trillion dollars in tax cuts for Nevada in the following legislation:
The 2008 Economic Stabilization Package provided $150 billion in tax relief, extended Nevada’s sales tax deduction and provided solar tax credits that could create as many at 41,000 Nevada jobs. [US Conference of Mayors, 10/13/08; Associated Press, 10/1/08; Solar Energy Industries Association, Press Release, 10/3/08]
The American Recovery and Reinvestment Act provided $282 billion in tax relief, one of the largest tax cuts in American history, which put $500 million back into the pockets of more than 1 million hardworking Nevadans. [New York Times, Economic Stimulus, White House Report, 4/22/08]. Additionally, the Recovery Act provided tax cuts or credits to seniors, disabled veteran, disabled workers, the unemployed, college students, parents, homebuyers, families hit by the Alternative Minimum Tax, and small businesses [Democratic Policy Committee, 2/11/09]. Rosemary Vassiliadis confirmed that the Alternative Minimum Tax provision within the Recovery Act kept the $2.4 billion construction project of Terminal 3 at McCarren International Airport on track. [Review-Journal, The Political Eye, 1/13/10]
The FY 2010 Budget that Sen. Reid led to pass cuts taxes by $764 billion over the next five years. [Knight Ridder, 4/28/09} This includes three years of relief from the Alternative Minimum Tax for middle-income taxpayers, devotes $512 billion over five years to extend the Bush tax cuts for middle-class workers, investors, and families with children, and made the sales tax deduction permanent in Nevada. [New York Times, 4/29/09; Associated Press, 4/30/09; McClatchy News, 4/29/09]
Sen. Reid also passed legislation to include the Homebuyer Tax Credit and tax credits for small businesses worth $26 billion in relief. The Homebuyer Tax Credit would extend $8,000 first-time homebuyer tax credit and creates a new $6,500 credit for homebuyers who have been in their current residence for the last five years or more. The business tax provision allows businesses that had operating losses in 2008 and 2009 to seek refunds for taxes paid on profits over the past five years. According to the New York Times, the cost of extending and expanding the homebuyer tax credit would bring roughly $11 billion in relief. The Joint Committee On Taxation estimated the Net Operating Loss provision would cost more than $15 billion over five years. [Washington Post, “Capitol Briefing,” 11/4/09; Congressional Record, 11/4/09; New York Times, 11/4/09; Joint Committee On Taxation, 11/3/09]
REID HAS BEEN FIGHTING FOR TAX FAIRNESS FOR NEVADA FOR DECADES; REID SUCCESSFULLY ENDED OUT-OF-STATE “SOURCE TAXES” ON NEVADA’S RETIREES
Sen. Reid successfully ended the out-of-state “source taxes” on Nevada retirees. In 1991, Rep. Barbara F. Vucanovich (R-Nev) and Sen. Reid reintroduced legislation that would outlaw this tax. [Washington Post, 3/27/91] In 1995, Sen. Reid passed the source tax ban, prohibiting states from taxing pension income of former residents who live in another state. [Los Angeles Times, 12/23/95]
JOB CREATION
NEVADA’S KEY INDUSTRIES HAVE NO STRONGER CHAMPION IN WASHINGTON THAN HARRY REID
Sen. Reid has a proven track record standing up for the industries that Nevada counts on for job creation and growth:
MINING: In the Senate, Sen. Reid has worked tirelessly to protect mining jobs. In fact, when describing the 2009 state legislative session, J. Patrick Coolican and David McGrath Schwartz wrote in their 2009 column, “The only real winner of the session? That would be mining. With the help of more than two dozen lobbyists, and an assist from U.S. Sen. Harry Reid, who made it known he wanted mining protected, the industry’s record-breaking profits did not lead to a tax increase.” [Las Vegas Sun, Coolican/Schwartz Column, 6/7/09]
GAMING: Sen. Reid has always been a strong ally of the gaming industry. In fact, he helped save CityCenter, which kept 10,000 construction workers on the job and now employs 12,000 workers. [Las Vegas Sun, 3/23/09] Furthermore, Sen. Reid personally inserted a debt cancellation provision into the Recovery Act that protected Harrah’s 31,000 employees. [Las Vegas Sun, Brian Greenspun Column, 11/8/09]
CLEAN ENERGY: Sen. Reid is committed to ensuring Nevada takes advantage of its natural resources like solar and wind to lead the nation in clean energy technology that will create jobs and break our dependence on foreign oil. Last year, he worked with the Interior Department to get Nevada clean energy projects fast-tracked for development on public lands, speeding reviews and identifying prime zones for renewable energy projects. [Las Vegas Sun, 6/29/09] Additionally, Sen. Reid personally inserted provisions into the Recovery Act that are allowing historic investment in Nevada Energy Transmission projects. This includes a $3.2 billion provision that Sen. Reid championed that gives power companies in Nevada and other states access to low-cost government loans to build transmission lines that carry renewable energy. [Las Vegas Sun, 3/8/09]
TOURISM: Sen. Reid has always understood the important role that tourism plays in Nevada’s economy. That’s why he is fighting to pass a Travel Promotion Act (S 1023) to help bolster the tourism industry by bringing in more foreign visitors. The legislation would create a nonprofit corporation to promote visits to the United States. [CQ Politics, 6/8/09]
LOWDEN CLAIMS SHE WANTS TO INVEST IN CLEAN ENERGY…BUT OPPOSED LEGISLATION MAKING THOSE INVESTMENTS IN NEVADA
In Sue Lowden’s economic recovery “plan”, she states her opposition to the Recovery Act. However, the Recovery Act includes millions of dollars of investments in clean energy technology for Nevada that will create jobs:
$12 Million For Geothermal Projects At Hawthorne Army Depot And Fallon Naval Air Station Will Create More Than 200 Jobs. [Gazette-Journal, 4/16/09]
$61.5 Million for Enel Green Power For Geothermal Projects. [Northern Nevada Business Weekly, 10/12/09]
$138 Million For NV Energy For Smart Grid Energy Technology That Will Create 200 Jobs. [Review-Journal, 10/27/09; Department of Energy, Smart Grid State Breakdown]
More Than $90 Million For 25 Nevada Geothermal Projects To Create Nearly 1,100 Nevada Jobs. [Review-Journal, 10/29/09; Reid Press Release, 10/29/09]
Recovery Act-Funded NV Energy Transmission Line To Create Around 400 Jobs. [Review-Journal, 1/12/20]
CONTRARY TO LOWDEN’S RIDICULOUS CLAIM, REID WAS ANYTHING BUT SILENT ABOUT PRESIDENT OBAMA’S COMMENTS IN ELKHART
Following President Obama’s seemingly discouraging remarks regarding corporate travel to Las Vegas, Sen. Reid immediately asked for clarification. Reid said, “I have spoken with President Obama’s chief of staff, Rahm Emanuel, about the President's remarks. He made it clear to me that the President's criticism was aimed at the potential use of taxpayer funds for junkets, and in no way reflects his thoughts about any one particular city.” [Reid Press Release, 2/11/09] In fact, following Reid’s inquiry, 12 agencies released letters indicating they would not discriminate against Las Vegas when selecting meeting destinations. [Review-Journal, 9/15/09]
ONLY SUE LOWDEN HAS HISTORY DISCOURAGING TRAVEL TO LAS VEGAS
In a January 2010 column, John L. Smith wrote, “In an attempt to keep my jaw from hitting the floor, I asked Lowden to clarify. ‘I think we need to do whatever it takes to make it safe,’ she said. ‘You're saying it's not safe now?’ I asked. ‘Well, I don't think it's safe,’ Lowden said. ‘There's a lot of people who are very frightened, like we were talking about, who will not get on a plane right now because they are frightened of what's going on and the possibility of people slipping through the cracks. It's frightening.’” [Review-Journal, John L. Smith Column, 1/12/10]
SPENDING
LOWDEN RAILS AGAINST THE BAILOUT, BUT SAYS SHE MAY WELL HAVE VOTED FOR IT HAD SHE BEEN IN THE SENATE.
On January 15, the Nevada Appeal reported, “Lowden had different reactions to the bank bail-out legislation and the stimulus package. On bail-out spending: ‘It's easy to say, no, I wouldn't have voted for it. But people were panicked, we were facing collapse — that's what they were saying. It's easy to say from a distance I would have voted no, but I can't do that.’ On the stimulus, she said she would have been a definite no.” [Nevada Appeal, 1/15/10] In fact, Lowden went ever further to defend her position, citing other conservatives like Sens. John Thune, Mitch McConnell, John Cornyn, and Tom Coburn who all supported the legislation. [Lowden Campaign Blog Post, 1/18/10]
WHAT’S MORE, SUE LOWDEN SERVED ON THE NEVADA BOARD OF DIRECTORS OF COLONIAL BANK, WHICH APPLIED FOR BAILOUT FUNDS
Sue Lowden Was A Paid Member Of Colonial Bank’s Nevada Board Of Directors. In an amendment filed to her personal financial disclosure, Sue Lowden listed “Colonial Bank Advisory Board” as a position held from June of 1998 to February of 2009. Lowden also disclosed a $350 fee for her roles on the Colonial Bank Advisory Board under her sources of income. Sue Lowden was listed among the names of the Nevada Board of Directors in the bank’s report to shareholders for the year ended December 31, 2007. [Lowden Amended Financial Disclosure, 12/16/2009; Colonial BancGroup 2007 Annual Report]
Lowden’s Company Maintained $29 Million Line Of Credit With Colonial. According to an SEC filing submitted in the wake of Colonial Bank’s collapse, Sue and Paul Lowden guaranteed a $29,000,000 line of credit between their casino company, Archon Corporation, and Colonial Bank. This line of credit was extended by BB&T when BB&T took over the collapsed Colonial Bank. [Archon Corporation Current Report Form 8-K, Exibit 99.1, 9/2/2009]
Colonial Bank Applied For TARP Funds. In November 2008, Colonial BancGroup issued the following statement in a press release: “The Colonial BancGroup, Inc. is making the following announcement in order to correct what it perceives to be misinformation in the market place. Colonial has, in fact, applied for participation in the TARP Capital Purchase Program. Its application was delivered to the FDIC in a timely manner. While assurances cannot be given as to the outcome of the application, Colonial has been given no information that would lead it to doubt that its application is not being processed through the normal channels. At this time, it is not possible to project when we will receive an answer to the application.” [Colonial Bank Press Release 11/13/2008]
Department Of Justice Investigated Colonial For Possible Criminal Violations And “Suspect Accounting.” According to an August, 2009 article in the Orlando Sentinel, “Colonial Bancgroup confirmed Friday that it is being investigated by the Justice Department for possible mortgage-related criminal violations and by the Securities and Exchange Commission for suspect accounting practices tied to its request for federal bailout money.” [Orlando Sentinel, 8/7/2009]
THE BAILOUTS ARE WORKING
Despite Lowden’s inconsistencies on bailouts, even Senate Republican Leader Mitch McConnell stated that TARP “succeed in stabilizing the banking system”. [Politico, 10/5/09] In fact, the Treasury Department is anticipating much smaller losses on TARP, expecting to recover all but $42 billion of the $370 billion it has lent to companies. [New York Times, 12/7/09] This was confirmed by Federal Reserve chairman Ben Bernanke who indicated his confidence saying, “I do believe we're going to get back all the money, and indeed we'll be showing for the taxpayers fairly significant extra income.” [CNN Money, 12/9/09]
LOWDEN’S “PLAN” IS SILENT ON PRESIDENT OBAMA’S PROPOSED BANK REFORMS
Sen. Reid has praised the new proposed bank regulations, citing their protections for consumers and the marketplace. He said, “We can no longer afford for financial institutions to get away with risky bets that endanger our entire economy or gamble away money that middle class families depend on to send their children to college and allow them to retire. I appreciate the President’s commitment to end business as usual on Wall Street and restore fairness and sensibility to the marketplace.” [Review-Journal, Political Eye, 1/21/10]
LOWDEN’S ATTACK OVER FEDERAL SPENDING IN NEVADA IGNORES FACTS, WAS PREDICTED BY THE REVIEW-JOURNAL
The Review-Journal has already stated that the Republican attacks on Sen. Reid regarding federal dollars are disingenuous. According to the report, much of the money from the feds comes in the form of matching state spending. If state elected officials are stingy, the feds don’t send as much money … Still, it’s a good bet ads attacking Reid will skip the nuance and hone in on two words. Dead last.” [Review-Journal, 8/17/09] This was confirmed by the Reno Gazette-Journal when it reported that Nevada doesn’t get more federal money because Carson City won’t commit to spending what it takes to qualify for it. [Gazette-Journal, 4/29/08]
REID DOES MORE TO MAKE UP FOR NEVADA’S FEDERAL FUNDING SHORTFALL THAN ANY OTHER MEMBER OF THE DELEGATION
To make up for Carson City’s shortcomings, Sen. Reid consistently delivers more federal dollars than the rest of the Nevada Congressional Delegation combined. [Las Vegas Sun, 3/12/08; Las Vegas Sun, 2/24/08]
LOWDEN WOULD TIE ONE HAND BEHIND NEVADA’S BACK BY SWEARING OFF EARMARKS
In January 2010, the Review-Journal reported, “Lowden spokesman Robert Uithoven disputed Tarkanian, saying there is little daylight between the two GOP candidates on earmarks. Uithoven said Lowden also would forego earmarks for Nevada, but would otherwise push to increase the federal spending sent to the state through programs that distributed funds through various formulas. [Review-Journal, 1/21/10]
LOWDEN IGNORES THE FACTS ON FEDERAL LAND OWNED BY NEVADA
Sen. Reid worked tirelessly to get Nevada’s counties full compensation for property taxes lost from federal lands. In Associated Press reported that Sen. Reid’s legislation ensured that a record $23 million in federal payments would be made to Nevada counties in 2009 to offset losses in property taxes for nontaxable federal lands within their boundaries. [Associated Press, 6/15/09]
In October 2008, the Gazette-Journal reported, “There's good news for Nevadans in the Emergency Economic Stabilization Act passed Wednesday by the Senate as thousands of resident would receive major tax benefits in the package … Rural Nevada would see major benefits from full funding of the Payment In Lieu of Taxes program through fiscal year 2012 and reauthorization of the Secure Rural Schools program through 2011 with a significant formula change that will bring tens of millions of dollars in new money to Nevada's rural communities.” [Gazette-Journal, 10/3/08]
