Legislation Reduces Taxpayer Burden, Does Not Set Any Precedent & Is Sensible Conservative Solution
Congressional Budget Office: PROMESA Will Have “No Significant Net Effect On The Federal Deficit.” (Ryan Rainey, “CBO: Puerto Rico Bill Won’t Have Significant Effect On Federal Deficit,” Morning Consult, 6/3/16)
- Legislation Does Not Carry A “Significant Price Tag.” “The CBO determined Friday that legislation pending before the House would not carry a significant price tag, eliminating one potential political hurdle for the measure.” (Peter Schroeder, “CBO: Puerto Rico Bill Wouldn’t Add To Deficit,” The Hill, 6/3/16)
Representative Raúl Labrador (R-ID): “The Bill Establishes Fiscal Reforms Without Spending A Single Dollar In U.S. Taxpayer Money To Relieve Puerto Rico’s Debt.” (Representative Raúl Labrador, “Solving Puerto Rico’s Debt Crisis,” Idaho Statesman, 6/2/16)
- Legislation Prevents A Bailout And Is A Conservative Solution. “The bill prevents taxpayers from bailing out a government … and provides a conservative solution to force Puerto Rico to spend responsibly.” (Representative Raúl Labrador, “Solving Puerto Rico’s Debt Crisis,” Idaho Statesman, 6/2/16)
- No Future Precedent Will Be Set For States And Municipalities. “The bill also avoids setting a horrible precedent that could tempt free-spending states to walk away from obligations by behaving irresponsibly.” (Representative Raúl Labrador, “Solving Puerto Rico’s Debt Crisis,” Idaho Statesman, 6/2/16)
- Not Passing The Legislation Could Cost American Taxpayers In The Future. “If Puerto Rico fails to restore its creditworthiness, the result would disrupt the ability of local and state governments across the country to borrow at low rates favorable to taxpayers.” (Representative Raúl Labrador, “Solving Puerto Rico’s Debt Crisis,” Idaho Statesman, 6/2/16)
Orlando Sentinel Editorial: “It’s A Tough But Fair Plan … In Other Words, It’s A Compromise – A Rare Achievement These Days In Washington, D.C.” (Editorial, “Where We Stand: Pass Plan To End Crisis In Puerto Rico,” Orlando Sentinel, 6/4/16)
- Legislation Contains No Current Bailout And Prevents A Future One. “While critics on the right have branded the plan as another federal bailout, it doesn’t call for spending any taxpayer dollars to repay Puerto Rico’s debts. But the longer Congress stands by as the island’s economy deteriorates, the greater the chances a bailout eventually will become necessary.” (Editorial, “Where We Stand: Pass Plan To End Crisis In Puerto Rico,” Orlando Sentinel, 6/4/16)
- PROMESA’s Oversight Board Would Work Side By Side With Puerto Rico’s Government. “Critics on the left have faulted the plan’s supervisory board as an infringement on Puerto Rico’s sovereignty. But the board would work together with the island’s elected leaders, who would be responsible for initiating a recovery plan.” (Editorial, “Where We Stand: Pass Plan To End Crisis In Puerto Rico,” Orlando Sentinel, 6/4/16)
Former Utah State Senator Dan Liljenquist: PROMESA “Might Be The Only Viable Path Forward.” (Former Utah State Senator Dan Liljenquist, “PROMESA Might Be The Only Viable Path Forward For Puerto Rico,” Deseret News, 6/1/16)
- Legislation Has Provisions Necessary To Address Puerto Rico’s Crisis. “The bill would create a strong and autonomous financial oversight board for Puerto Rico with the power to require balanced budgets, address pension liabilities and facilitate debt restructuring (through voluntary creditor negotiations, or, if necessary, through a court supervised process).” (Former State Senator Dan Liljenquist, “PROMESA Might Be The Only Viable Path Forward For Puerto Rico,” Deseret News, 6/1/16)
Public Sector Credit Solutions: Legislation “Does Not Include Any New Federal Spending.” “501c4 groups opposed to the debt adjustment regime in PROMESA paint it as a federal bailout for the island, even though the bill does not include any new federal spending.” (Marc Joffe, “With Puerto Rico, Get Over Your ‘Principled Opposition,’” Real Clear Markets, 6/2/16)
- Legislation Actually Reduced Cost Burden On Taxpayers. “But any reduction in principal or interest payable to bondholders actually lowers Puerto Rico government spending and thus the burden on taxpayers, both on the island and on the mainland – since one third of Puerto Rico Commonwealth spending comes from federal grants.” (Marc Joffe, “With Puerto Rico, Get Over Your ‘Principled Opposition,’” Real Clear Markets, 6/2/16)
- “The Fact That The Legislation Derives From The Territorial Clause Makes It Inapplicable To U.S. States, Contrary To The Contention Of Bill Opponents.” (Marc Joffe, “With Puerto Rico, Get Over Your ‘Principled Opposition,’” Real Clear Markets, 6/2/16)
Backyard Bondholders: “If PROMESA Is Not Approved, There Will Be Chaos After July 1.” (Luis J. Valentin, “Local Bondholder Group Shows Full Support To PROMESA,” Caribbean Business, 6/1/16)
- Legislation Would Allow For A “Fair And Orderly” Debt Restructuring. “We want to recover our investments and savings that we lent in good faith to the Puerto Rico government throughout time. But as Puerto Ricans, we want this to be done in a fair and orderly manner without bringing more uncertainty and panic to the people. That is why we repudiate the opposition of vulture funds and politicians against the fiscal board.” (Luis J. Valentin, “Local Bondholder Group Shows Full Support To PROMESA,” Caribbean Business, 6/1/16)
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