Tags: Ex-Im Bank | Ryan | Tea Party | Republican

Ryan Says He May Back Renewing Export-Import Bank With Changes

Wednesday, 30 July 2014 11:44 AM EDT

Representative Paul Ryan, the House Budget Committee chairman, criticized the U.S. Export-Import Bank as “crony capitalism” though he said he’d consider reauthorizing the lender after changes are made.

“Could the thing be reformed? Of course,” Ryan said today at a breakfast in Washington hosted by the Christian Science Monitor. “But at the end of the day I believe there are so many more things we should be dedicating taxpayer resources to than handing it out to some select companies.”

The Export-Import Bank has become a flash point in a Republican battle between the party’s pro-business allies and the small-government Tea Party-backed wing. Lending authority for the bank, which supported about 2 percent of $2.3 trillion in U.S. exports last year, is set to expire on Sept. 30.

The bank’s lending aids some of the largest U.S. companies including General Electric Co. and Boeing Corp., the world’s largest plane maker. About 65 percent of the $37.4 billion the bank issued in loans and guarantees last year involved sales of Boeing aircraft, according to a June 3 report by the independent Congressional Research Service.

Lawmakers aligned with the Tea Party movement, including House Financial Services Committee Chairman Jeb Hensarling of Texas, have made eliminating the bank a top priority. Representative Kevin McCarthy of California, who takes over as House majority leader tomorrow, said he opposes letting the bank continue, saying private lenders can do the job.

‘Hand Out’

Ryan of Wisconsin, the Republican vice presidential candidate in 2012, described the bank as “representational of some of the crony capitalism we have in Washington, big government and big business joining in a common cause to hand out preferences.”

“Boeing can do well without the Ex-Im bank,” he said. “Any of the companies can do extremely well on their own.”

Ryan said that efforts to stop U.S. companies from completing tax-reducing offshore mergers should be part of a revamp of the U.S. tax code.

“It’s very clear that the solution here is tax reform,” Ryan said. “If we try to do some short-term patch, all we’ll end up doing is accelerating the trend of foreign companies buying U.S. companies. So we will actually make problems worse.”

House Ways and Means Committee Chairman Dave Camp, a Michigan Republican, has proposed a package to revamp the U.S. tax code, which Ryan described as “heroic.” House Republican leadership has declined to move that plan through the chamber.

© Copyright 2024 Bloomberg News. All rights reserved.


InvestingAnalysis
Representative Paul Ryan, the House Budget Committee chairman, criticized the U.S. Export-Import Bank as "crony capitalism" though he said he'd consider reauthorizing the lender after changes are made.
Ex-Im Bank, Ryan, Tea Party, Republican
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2014-44-30
Wednesday, 30 July 2014 11:44 AM
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