Key Vote Alert – “NO” on Currency Exchange Oversight Reform Act

Mr. Andrew Roth - January 19th, 2011


“NO” on Currency Exchange Oversight Reform Act

The Club for Growth urges all members of Congress to vote “NO” on the Currency Exchange Oversight Reform Act recently proposed by Senator Chuck Schumer.  While the bill has not yet been introduced, previous versions provide a direct assault on free trade and economic liberty. A vote on this bill will be included in the Club’s 2011 Congressional Scorecard.
This proposal would make it easier for the government to slap punitive tariffs on “nonmarket” economies – in particular China – if an exporting country’s currency is considered misaligned against the U.S. dollar.  This is a disastrous proposal that would increase taxes on American consumers, stall the economic recovery, and spark an ugly trade war that would benefit no one.
Supporters of this bill believe that cheap imports from China are harming our nation’s manufacturers, but they fail to realize that China ships intermediary goods and raw materials to the United States, not just final consumer products.  These cheap goods are used by our nation’s businesses to produce final products that can be sold at competitive prices.  And even if supporters of this bill had a valid argument, the better course of action to spur our nation’s economy is not to punish another country through higher taxes on ourselves, but by lowering taxes on corporate income, capital gains, and dividends.  This would ignite economic growth, expand our access into foreign markets, and make American companies more competitive and innovative.  We strongly urge all members to not only vote against this bill, but to decline co-sponsorship of it.
Our Congressional Scorecard for the 112th Congress provides a comprehensive rating of how well or how poorly each member of Congress supports pro-growth, free-market policies and will be distributed to our members and to the public.UPDATE: As of today, this bill has still not been considered (02/08/2011).