Delivers speech exposing big government, big business cronyism

WASHINGTON, D.C. – U.S. Sen. Ted Cruz (R-Texas) today delivered a speech at The Heritage Foundation revealing the cronyism that runs deep in Washington, powered by the Washington Cartel of establishment politicians and corporate lobbyists who continue to benefit big government and big business at the expense of millions of Americans.
“Washington has done a great job of one thing – picking winners and losers, except it’s clear each time who the losers are: it’s American families, who are struggling to pay skyrocketing health care premiums and tuition costs; it’s our community banks and marketplaces that are going out of business; it’s young entrepreneurs and small business owners.”
“What’s happening in Washington is no accident,” Sen. Cruz said. “It is a concerted effort by corporate lobbyists and establishment politicians. Lobbyists and career politicians make up the Washington Cartel. Let me explain to you how it works: A bill is set to come before Congress, and career politicians’ ears and wallets are open to the highest bidder. Corrupt backroom deals result in one interest group getting preferences over the other, although you give the other a chance to outbid them. Or even worse, a very small interest group getting special carve-outs at the expense of taxpayers.”
View Sen. Cruz’s remarks here.
Sen. Cruz discussed four examples of the Washington Cartel at work:
Regarding the Export-Import Bank, Sen. Cruz said:
“It is hard to imagine an institution that is more emblematic of cronyism than the Export-Import Bank…. The Export-Import Bank kills American jobs, and often favors foreign investment over American investment. It also has this terrible record of subsidizing unfriendly regimes with problematic human rights records. In 2013, just one year, the Ex-Im bank streamed $35 million to Venezuela banks and investors; $335 million to Argentina; $1 billion to Russian financiers; and $2.7 billion to communist China.”
Regarding renewable energy mandates, Sen. Cruz said:
“A two-year extension of wind credits alone costs taxpayers more than $13 billion, which is enough to pay the monthly electricity bills for 124 million Americans. How about putting that up for a referendum? Do we continue to benefit one favored industry, or do we pay the electricity bill for 124 million Americans? You know, I don’t think that would be a close vote for the American people. And what’s interesting: it’s not a close vote in Washington. Because the only people voting in Washington are the lobbyists with bags of cash. And the lawmakers in both parties eager to get that cash.
“For decades, the federal government has teamed up with specific industries to pick winners and losers in the energy industry. Aside from further complicating an already Byzantine tax code, this type of corporate welfare has only distorted the price of energy and empowered failed companies like Solyndra.”
Regarding sugar subsidies, Sen. Cruz said:
“This form of subsidy seems particularly un-American. After all, before the Tea and Stamp Act came the Sugar Act in 1764… and it was then that the cry of ‘no taxation without representation’ was widely voiced by the colonists. You know what, we do have representation, but our representatives are not representing us.
“The Wall Street Journal reported last December that at the time, sugar was 58 percent more expensive here at home than at the global market…. This price control increases food costs for businesses and families, particularly low-income households…. From 1997 to 2011, nearly 127,000 jobs were lost in domestic sugar-using industries.”
Regarding the Internet sales tax, Sen. Cruz said:
“The Internet has been an incubator for new ideas. It has been a haven for entrepreneurial opportunity. It has allowed millions of people to create small businesses…. Today, parents can purchase Christmas presents for their kids with the click of a button; a teenager can design an app that revolutionizes the way things were done; a mom can sell her hand-made cards on Etsy; with a few taps, an Uber can come to your doorstep.
“And yet Congress is talking about passing the Orwellian-named Marketplace Fairness Act, we’ve seen the pattern of Washington fairness. What is Washington fairness? Hammer the little guy, help the big guy… [The Marketplace Fairness Act] would take every online retailer in America and tell them you must now collect sales taxes for over 9,600 different tax jurisdictions all across the country.”
Sen. Cruz concluded, “How do you break the Washington Cartel? You make the political price of doing the wrong thing higher than the price of doing the right thing, and that can only come from ‘we the people.’”
A complete transcript will be available here.