U.S. representative · 4th congressional district · PETER DeFAZIO REPORTS Congress of the United States House of Representatives January 2012

Counties In $236 Federal Deficits (in billions) Creating Jobs, Crisis $128 Saving Counties

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 I opposed the Clinton Read more on $158 $161 Northwest Forest Plan in $248 1994 because it wouldn’t my efforts to $318 $378 deliver promised levels $413 stabilize rural counties $459 of timber harvest, and it and protect the health lacked protections for old of our forests, Page 3 growth. The Clinton Forest Plan in fact relied on a large volume of old growth FACTCHECK: harvests. $1,293 Wall Street $1,413 I predicted his plan Speculator Tax would lead to controversy Source: Office of Management and Budget and years of litigation. Over the last two decades Learn about my plan we have made little to generate revenue Three Step Plan to progress in addressing the and reduce market gridlock in our forests. volatility, Page 3 Responsible Budgets The extremes in this The accumulated debt of the U.S. passed $15 debate will never be trillion in November. For the first time since World War satisfied. II, our debt exceeds the gross domestic product. That’s a horrible legacy to leave our kids and grandkids. Some environmental Join my activists demand we stop Sometime in the near future I expect our credit harvesting all timber on telephone town card will be denied or interest rates will skyrocket. public lands no matter how hall meetings necessary that might be to If we want to save Social Security and Medicare preserve forest health and and make investments that put people back to work, rural jobs. There are some On Oregon’s Do-Not Call we must get our debt and deficit under control. in the timber industry who list but want to participate insist we return to the days in my telephone town hall On page four, you can read about my plan to that would liquidate the last put us on a path to fiscal responsibility. of the old growth on our meetings? public lands.

SEE STEPS ON PAGE 4 I have been working Contact my Eugene with a diverse group of office at 800-944-9603or stakeholders to build a send my office an email Fighting for Jobs bipartisan plan that creates through my website, and jobs through sustainable management, helps leave your name and phone Here at Home stabilize Oregon’s rural number so you can be For three years our nation has struggled with communities, and ensures included on the next call. high unemployment. The Bureau of Labor Statistics the protection of old estimates real unemployment is hovering at a growth and forest health for stunning 16% percent and 25.5 million Americans future generations. are unemployed, underemployed, or have given up looking for work. After many hours of negotiation, compromise, Keep up with me We can and must do better for our people. We and hard work, I hope to cannot afford another year of congressional inaction. soon introduce legislation on Social Media with Rep. Kurt Schrader @RepPeterDeFazio on I have been pushing my colleagues to work on and Rep. real legislation that creates and keeps living wage to provide a long-term Twitter family jobs here at home. plan for Western Oregon communities. www.facebook.com/pe- On the following page, you can read about my work terdefazio on Facebook to put people back to work. SEE FORESTS SEE JOBS ON PAGE 2 ON PAGE 3 Continued from Page 1 Fighting For Jobs Here At Home INVESTING IN AMERICA AND BUY THREE MORE TRADE AGREEMENTS, AMERICA THREE MORE DISASTERS Our national transportation system is facing a crisis. As a result of so-called “free” trade agreements, 54,000 According to the National Surface Transportation U.S. manufacturers have boarded up or moved overseas Infrastructure Financing Commission, it has deteriorated over the last ten years according to the Bureau of Labor so greatly “our safety, economic competitiveness, and Statistics (BLS). The BLS also found that over five quality of life are at risk.” million family wage manufacturing jobs, including 53,000, in Oregon have disappeared. The U.S. is We need to rebuild our nation’s infrastructure. Every $1 borrowing a billion dollars a day to buy foreign goods that billion invested in transportation infrastructure creates used to be made here at home. or sustains over 34,000 jobs and produces $6.2 billion in economic activity. In 2011, Congress recklessly passed three more free trade agreements (FTAs) These jobs are not just that will lead to the further construction jobs. They erosion of our already are also private sector jobs degraded manufacturing in engineering, software base. The Economic Policy and architectural design, Institute estimates these manufacturing, and small FTAs will cost the U.S. business as well. It would over 200,000 jobs and directly help businesses that increase our trade deficit supply materials for these by at least $20 billion. projects. There is no more certain way to jumpstart our The South Korea FTA economy, put people to work, will increase the U.S. trade and improve our long-term deficit, grant the Korean economic competitiveness. auto parts manufacturers easier access to American We must ensure that jobs markets, and may allow created by transportation U.S. to export more beef. investments go to American workers and businesses, not Panama is the Western China. Hemisphere’s leader in Congressman DeFazio discusses transportation legislation that would create jobs and sheltering drug runners Recently, Clackamas- fund critical road and bridge projects like this bridge in Eugene. and money laundering based Oregon Ironworks lost Photo Credit: Oregon Department of Transportation corporations, and it is home a federally funded bridge project to a Chinese company to over 400,000 corporations seeking to avoid U.S. taxes because of loopholes in current Buy American laws. I have and laws. Under the Panama FTA, these unsavory operators cosponsored “Buy America” legislation (H.R. 3533) that will enjoy greater access to U.S. markets. closes these loopholes, guarantees that federal investments create American jobs, and ensures that American The Colombian government ignores the murder businesses and workers can fairly compete for federally of labor activists seeking better working conditions. funded transportation projects. Under the Columbia FTA, they agree to try and stop the assassinations and in return they will become yet another base for U.S. manufacturers to access cheap, exploited FIGHTING FOR JOBS FOR UNEMPLOYED labor to export goods back to American markets. AMERICANS These FTAs, like the previous agreements I opposed, In 2010, the Bend Bulletin reported that federal stimulus will not produce the promised benefits for our economy. funds were awarded to private contractors in Oregon who We need a new trade policy for this country. I have underbid their competition by using foreign laborers. After reintroduced the End the Trade Deficit Act, H.R.1603, reading the articles, I demanded the Inspector General (IG) which would prohibit new free trade agreements until a investigate these contracts. report on the causes and solutions of free trade agreements is provided to the president and Congress and acted upon. I The IG investigation found that these companies will continue to fight to protect American workers and exploited federal loopholes to hire foreign workers and that oppose our wrong-headed trade policy. federal and state agencies failed to properly oversee the contracts. FORCING CHINA TO PLAY BY THE RULES In October, I demanded the Department of Labor Last year, the U.S. Census reported that the U.S. trade (DOL) close these loopholes so businesses can’t skirt deficit with China was $273 billion or 42% of our total the law and hire foreign workers on federal contacts at international trade deficit. For every $1 in goods the U.S. the expense of American workers. The DOL agreed and exports to China, we import $4 of goods from China. The is revising several rules. Unfortunately, special interests U.S. trade deficit with China alone has cost us 2.8 million who pad their pockets by exploiting the law are fighting jobs according to the Economic Policy Institute (EPI). this change. I am fighting to make certain congressional budget writers protect American workers by enforcing the China illegally manipulates their currency, which gives proposed changes. them an unfair advantage. The EPI found that by forcing China to revalue its currency, we could create 2.25 million Our workforce is one of the best in the world, and these jobs in the U.S. and reduce U.S. unemployment by one full contracts should have been awarded to companies that percentage point. I cosponsored the Currency Reform for would hire unemployed Oregonians. It is obscene that U.S. Fair Trade Act, legislation to require the U.S. take action companies were rewarded for abusing American workers against currency manipulators like China and impose and immigration laws to undercut honest competitors to retaliatory tariffs on their imports. squeeze unearned profits out of contracts. China does not play by the rules. The U.S. must I will continue to fight to fix these immigration defend American workers and businesses by enforcing loopholes. international trade laws.

PAGE 2 Stop Reckless Speculation On Wall Street In November, I introduced the Wall Street Trading and sound fiscal footing. The $350 billion in new revenue will Speculators Tax. This bill places a .03% tax (30 cents on a reduce our deficit and enable federal investments that will $1,000 transaction) on most non-consumer financial trading put people back to work. like stocks, bonds, and complex financial instruments.It targets high volume Wall Street speculators who add FACT CHECK: Speculator Tax tremendous volatility to the market by flipping stocks a thousand times a minute. vs. H.R. 4646 An internet rumor claims Senator Tom Harkin and This legislation would not impact the average I introduced H.R. 4646, a bill that would levy a one investor and does not apply to everyday banking percent tax on every financial transaction including credit transactions. The non-partisan Joint Committee on card transactions, bank deposits, and social security Taxation found that this bill would raise $352 billion over deposits. This email is FALSE. Rep. Chaka Fattah from ten years. Pennsylvania introduced H.R. 4646. I do not and have never supported this legislation. Not only would the Wall Street Speculators Tax raise revenue, it would drive the worst high volume The non-partisan political fact checking site Politifact speculators out of the market, which benefits pension rated the DeFazio-H.R. 4646 myth “Pants on Fire Lie.” funds and other long-term investors. A Wall Street financial transaction tax has the support of over 200 To read more or for additional information and non- economists, including Paul Krugman, business leaders like partisan fact checking articles that have debunked Bill Gates, and more. [see list at www.defazio.house.gov] the myth, go to www.defazio.house.gov and click “The Truth About H.R. 4646.” We need serious proposals to get our country back on Creating Jobs, Bringing Certainty to Rural Oregon, Protecting Forests Continued from Page 1 This plan would create thousands Institute estimates our proposal and construction. of jobs in our forests, mills and could create more than 12,000 communities, stabilize rural new jobs in rural communities Protecting our forests communities, save taxpayers money, throughout Oregon and reduce high protect old growth and ensure the unemployment throughout the state. Our plan would provide permanent health of federal forests for future protection for old growth in western generations. Our proposal continues the Oregon for the first time ever. prohibition on exporting unprocessed Our plan is not final and must logs from federal lands and protects It would also protect some of still go through the legislative family-wage jobs, and Oregon’s the most pristine and scenic areas process. But I believe our plan is a manufacturing base by penalizing in the state adding 150 miles of realistic, long-term solution that will businesses that ship Oregon timber Oregon rivers to the Wild and Scenic break the gridlock. from federal lands overseas. Rivers Act, and protect 90,000 acres of Oregon forests as wilderness Rural Oregon communities Bringing financial stability to including Devil’s Staircase and cannot afford congressional rural Oregon counties Wild Rogue; it would also transfer inaction. 1,000,000 acres of old growth forests Our proposal will stabilize from the Bureau of Land Management It’s time the tired rhetorical debates counties by moving them away to the Forest Service. end and we work together to pass from the uncertain future of county a common sense, long term plan to payments and the political disputes in Some environmental groups protect our forests and revitalize our Congress. claim this proposal would waive rural Oregon counties. the Endangered Species Act, the Forested counties in rural Clean Water Act, and other critical O & C Trust, Conservation, Oregon would be able to count on a environmental laws. This is a lie. and Jobs Plan sustainable and more predictable level of revenue every year, keeping vital Oregon’s rural and forested county government services like law communities are facing a serious Creating Jobs for Oregonians enforcement, public schools, health financial crisis and this plan is a The Oregon Forest Resources care, road and bridge maintenance, serious solution. A Grim Future for Rural Oregon Federal support payments to rural and forested communities, commonly known as “county payments,” that helped support rural Oregon counties for over a decade expired on October 1. There is little hope Congress will pass a long-term extension at adequate funding levels given our growing federal deficit. This should alarm all Oregonians. The expiration of county payments will have serious consequences for Oregon families unless a long-term solution is found. Counties will continue to release offenders and close jail beds. Pot-holed roads and structurally deficient bridges will be neglected. And already underfunded rural schools will be devastated. A recent study by Oregon State University found that without county payments, Oregon rural counties will shed between 3,000 and 4,000 jobs. Oregon business sales will drop $385 million to $400 million. And counties will lose $250 million to $300 million in revenues. For counties already on a financial cliff and facing depression-like unemployment, this could be the final blow.

For current information go to www.defazio.house.gov

PAGE 3 Three Steps To Fiscal Responsibility STEP 1: FORCE CONGRESS STEP 2: SMART DEFICIT investigations have found TO BALANCE OUR BUDGET REDUCTION serious errors in the Pentagon’s bookkeeping. In 2000, an Inspector Social Security is the largest END EXPENSIVE AND General report found that nearly one creditor to the U.S. government. INEFFECTIVE TAX CUTS: third of the accounting entries in Unless we get our spending under Returning to the Clinton-era tax rates the Pentagon’s $600 billion budget control, we may not have the by ending the Bush tax cuts and Obama were untraceable. We could achieve capability to honor that debt to pay Payroll tax cut would slash the deficit significant savings if the Pentagon future Social Security benefits. over the next 10 years by about 50% was subjected to audits just like or $5 trillion, according to the Joint every other federal agency. We need to guarantee the Committee on Taxation. federal government can meet future In July, the House passed my commitments to fully fund critical END WASTEFUL TAX BREAKS amendment to end the Pentagon’s programs like Social Security, AND SUBSIDIES: Ending tax special exemption and to complete Medicare, public education, and our loopholes and subsidies for profitable its first audit in years. There is transportation infrastructure. corporations like GE and Exxon no reason the largest and most would generate $159 billion a year expensive agency in the federal During my first term in Congress, according to Citizens for Tax Justice. government should hide its books I did not support a balanced budget Ending subsidies to big agriculture from scrutiny. We need to guarantee amendment (BBA) to the Constitution. conglomerates would save $20 billion that taxpayer dollars are used I was concerned it was just a gimmick a year according to the Office of efficiently to support our troops and and all Congress needed to do was Management and Budget. counter real threats. This amendment work together to make tough decisions. will help achieve that goal. END AFGHAN WAR AND COLD It didn’t take long to figure WAR ERA PROGRAMS: The U.S. FEDERAL RESERVE out that Congress has an infinite cannot afford to be the cops of the The lack of transparency at the capacity to kick the can down the world. We do not need enormous Federal Reserve (Fed) has long road. Over time, that can has gotten military bases and thousands of troops concerned me. But I was stunned heavier and is going to land squarely stationed in Europe – the Cold War to learn that between 2007 and on the next generation with full force. ended 20 years ago. We need to get out 2010 the Fed secretly loaned six of Iraq and end the war in Afghanistan. Wall Street megabanks $7.8 trillion In 1995, I supported a BBA that U.S. troops should not be responsible in taxpayer money. That is more passed the House. It failed in the for settling the Afghanis centuries long than ten times the size of the Senate by one vote. Had it become the intertribal and intratribal conflicts. controversial Wall Street bailout law of the land, today we would be If we ended the wars and reduced that was approved by Congress paying down the last of our debt. overseas Cold War era troop levels, we over my strong opposition. would save U.S. taxpayers over $125 These banks destroyed our We wouldn’t have had ten years billion per year. of the Bush tax cuts that favored economy by making risky bets, and millionaires and billionaires. We PUT AMERICA BACK TO WORK: the Fed secretly bailed them out would have forced Congress to vote Millions of Americans have suffered without any consequences for their annually before putting the wars from long-term unemployment. We actions. Bloomberg News estimates in Iraq and Afghanistan on the have to get Americans working again that these massive Wall Street banks credit card. We wouldn’t have had a in the jobs they want and need. That actually made money by taking prescription drug benefit that gives alone would reduce the deficit by $400 advantage of this secret backdoor subsidies to the pharmaceutical billion according to the Center on bailout by the Fed. industry, added $500 billion to the Budget and Policy Priorities. [see more The Federal Reserve must be deficit, and gave seniors a donut in the jobs section on Page 2] hole. held accountable to the American STEP 3: AUDIT THE people. I have long fought for an That’s why I was a lead Democratic independent audit of the Fed to sponsor of a nearly identical BBA in PENTAGON AND FEDERAL ensure transparency for the public. I the House in November. This BBA RESERVE was an early cosponsor of Rep. Ron would have forced Congress on both Paul’s Federal Reserve Transparency sides of the aisle to sit down and PENTAGON Act of 2011 and have cosponsored meaningfully deal with the financial Federal law requires all federal similar bills to rein in the Fed problems in this country. agencies to produce annual auditable throughout my time in Congress. financial statements. But, the Pentagon Though the amendment failed, I was given a special audit exemption. I will continue to fight for won’t give up my efforts to rein in legislation that forces a complete this reckless accumulation of debt in Over the last 30 years, federal audit of the Fed to ensure it is Washington, D.C. transparent and accountable.

Rep. Peter A. DeFazio 405 East 8th Ave #2030 My offices are here to serve you. Eugene, OR 97401

M.C. 405 East 8th Ave #2030 2134 Rayburn HOB Presorted Standard EUGENE, OR 97401 WASHINGTON, DC 20515 (541) 465-6732 (202) 225-6416 1-800-944-9603

612 SE Jackson St. #9 125 W Central Ave, #350 ROSEBURG, OR 97470 COOS BAY, OR 97420 (541) 440-3523 (541) 269-2609 VISIT MY WEB SITE AT: http://www.defazio.house.gov

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