July 14, 2009

Does AIG stand for “America’s Investment Gone?”
Stop AIG from sending more American taxpayer dollars overseas
Cosponsor The Responsible Use of Taxpayer Help (TRUTH) Act

Current Cosponsors (22):  Robert Brady, Carnahan, Carney, Dingell, Fudge, Hare, Hinchey, Holden, Kaptur, Kilpatrick, Kilroy, Kucinich, Lipinski, Michaud, Tim Ryan, Schauer, Shea-Porter, Space, Stupak, Sutton, Visclosky, and Woolsey.

Endorsed by the United Auto Workers

Dear Colleague:

On Friday, AIG announced that it would spend $2.4 million in TARP funds to pay the bonuses of its top-executives this week.  AIG also plans to pay $235 million in retention bonuses next year to employees of its troubled financial products division.  AIG made headlines in March after it used $165 million in TARP funds to pay for executive bonuses—$85 million of which was used to pay the bonuses of foreign executives who do not pay taxes in the United States.

While the Obama Administration is reviewing the latest round of bonuses, there is nothing stopping AIG from sending more American taxpayer dollars overseas.  The only way to stop this from happening is to change the law.  Please join me in this effort by cosponsoring H.R. 1761, The Responsible Use of Taxpayer Help (TRUTH) Act.  It would simply amend the Emergency Economic Stabilization Act to restrict the use of TARP funds for domestic purposes only.

Under current law, TARP recipients must be “established and regulated” under the laws of the U.S. and they must have “significant operations” in the United States, but the law does nothing to prohibit taxpayer dollars from being spent overseas.  While AIG and other TARP recipients have used taxpayer funds for overseas operations, other industries and businesses, including the American auto industry, were prohibited from using funds in this manner.

The main goal of the Emergency Economic Stabilization Act was to invest in U.S. companies and American workers to help jumpstart our economy.  I believe that sending TARP money overseas violates the congressional intent of that legislation.  I hope you will cosponsor my bill to fix this problem by stopping AIG and other TARP recipients from sending more American taxpayer dollars overseas before it is too late.

If you would like to cosponsor H.R. 1761, please contact Peter Karafotas by email at Peter.Karafotas@mail.house.gov or by phone at 5-3611.

                                                            Sincerely,

                                                            Dale E. Kildee
                                                            Member of Congress