Even though money for major road and bridge projects is set to run out this weekend, House Republican leaders have struggled all week to round up the votes from recalcitrant conservatives simply to extend it for 90 or even 60 days.
At the same time, House conservatives are pressing to allow the U.S. Export-Import Bank, which has financed business exports since the Depression, to run out of lending authority within weeks.
And a host of routine business tax breaks from wind energy subsidies to research and development tax credits cannot be passed because of Republican insistence that they be paid for with spending cuts.
Free market is not always the same as pro-business, said Barney Keller, spokesman for the conservative political action committee Club for Growth.
But without Export-Import Bank financing, companies large and small could find themselves struggling to complete contracts with overseas buyers.
Those buyers will most likely turn to foreign competitors whose governments have more robust versions of the bank, businesspeople say.
Theres not a bank in the United States thats going to loan money to that customer of mine in Argentina to buy my airplane, said David Ickert, vice president of finance at Air Tractor, which makes crop-dusting and firefighting airplanes in Olney, Tex. There is not a free-market system that operates like that. It does not exist. We need the Ex-Im Bank, period.
The bank is financed with a small percentage of each loan it makes to foreign buyers of American exports, producing $3.4 billion in profits for the federal government over the last five years.
Think about all the winners in this transaction, he said. Ex-Im got half a point. Baltimore City steelworkers got extra hours. I got extra profits to meet payroll, and hopefully I got a client who will reorder from me.
http://www.nytimes.com/2012/03/29/business/with-bank-teetering-a-bet-on-the-gop-backfires.html?pagewanted=1&_r=1&hp