A Weekly e-Newsletter from
Senator Johnny Isakson (R-GA)

April 11, 2008

Dear Friends,

This week, by a vote of 84 to 12, the Senate passed legislation that included one of my own proposals designed to stimulate our declining housing market.  My proposal provides a direct tax credit for the purchase of a single-family home in the amount of $7,000 over two years for purchases made within one year of the legislation’s enactment. Eligible properties include two categories of single family homes where a foreclosure filing has occurred pursuant to the laws of the state in which the residence is located:

• Homes that were occupied as a principal residence by the mortgagor for at least one year prior to foreclosure being filed (i.e., no investment properties).
• New construction properties that have never been occupied where permitting and construction began on or before September 1, 2007. (These also must be foreclosed or pending foreclosure.)

Our country and our economy face a serious challenge in the next 12 months. The number of unsold new homes and foreclosed resale homes will reach unprecedented numbers. Lenders will be forced to liquidate their real estate holdings, which will result in lower home values and less equity for homeowners.  I am very pleased with this legislation. It targets the purchase of the very homes causing the economy its biggest problems. A $7,000 tax credit will inspire buyers to get back into the market to absorb this standing inventory of homes that are foreclosed or pending foreclosure.  To learn more about the legislation, click here.

General Petraeus’ Testimony and President Bush’s Speech on Iraq
On Tuesday and Wednesday, General David H. Petraeus, the top U.S. military commander in Iraq, and Ambassador Ryan C. Crocker, testified before Congress regarding the situation in Iraq.  I was able to hear from them directly during their testimony before the Senate Foreign Relations Committee.  On Thursday, President Bush delivered a speech on Iraq in which he formalized many of the points made by the General. I was very open to hearing exactly what the President and our top commander had to say about the surge in troop levels though and its effects on troop morale and the situation on the ground. 

Much of General Petraeus’ testimony reflected my opinions on the situation in Iraq after my annual visits to the country.  We have had significant progress in Iraq but this progress is fragile and reversible with the wrong strategy.  We are already withdrawing troops to pre-surge levels, and once that drawdown is complete in July, Petraeus recommends a 45-day pause in troop withdrawal to reassess the possibility of withdrawing more troops without upsetting security and political progress. I believe it is imperative that the conditions on the ground should dictate our actions. In addition, he recommends we transfer responsibilities to the Iraqis as conditions on the ground allow and remaining cautious, because a failed state in Iraq means an increased foothold for Al-Qaeda Iraq, increased Iranian influence in Iraq and the region, and increased regional violence.  Therefore, Petraeus advocates for a measured withdrawal to keep pressure on the Iraqis, but not so much pressure that the different political and militant factions withdraw to their respective corners unwilling to negotiate. 

Crocker told the committee that if the American people decide we will withdraw troops, Congress must have a serious discussion about the regional and long-term implications of such withdrawal.  He implied that while the current situation in Iraq is grave, withdrawing troops will lead to a much worse situation with far reaching long-term implications on regional and U.S. security.  I hope that successful provincial elections this October empowering the Sunni minority, so that a coalition government can be strengthened and political reconciliation can move forward.  Additionally, the American taxpayer has been under a significant burden in paying for this war and I believe the time is near for Iraqis to begin increasing their payments toward the war effort in Iraq as is appropriate. 

President Bush then announced on Thursday that he was formally pausing the troop deployments in July, as outlined by General Petraeus. The President also announced that he was shortening troop deployments from 15 months to 12 months, and that units will be allowed to stay home for one year between deployments for every year they’ve served in the field. In addition, the President announced that he is launching an aggressive diplomatic effort among Arab nations – including Iran – to rally support for Iraq. These are positive steps that I can support.  

Gas Prices
As gas prices continue to climb as summer approaches, I have concerns with the significant increase in gas and oil prices and its effects on the American economy. There are no quick fixes in dealing with this issue, but there are things Congress has done to address it and there are more things Congress must do. I have to explore our own reserves in the Arctic National Wildlife Refuge because I believe we can be good stewards of our land while at the same time exploring for resources that increase supply and lessen our dependence on foreign oil, thus reducing prices.  I have also voted to make oil-producing and exporting cartels, such as the Organization of the Petroleum Exporting Countries (OPEC), illegal, and to make any legislation that is introduced in the Senate that would increase gas prices subject to a procedural roadblock. I also voted in favor of a 35-mile-per-gallon Corporate Average Fuel Economy standard for automobiles. By 2020, all cars sold in the United States must get an average of 35 miles to the gallon, saving 18 billion gallons a year of gas by 2020 and significantly reducing demand and gas prices.

As a major consumer of energy, America should be a leader in the development of new sources of energy and the development of renewable resources. This is why I voted to expand the use of alternative fuels such as biofuels and cellulosic based ethanol.  If Americans are given choices of which gas they would like to use to fill up their car, competition will also keep gas prices down. These steps and others will reduce demand on foreign oil, increase supply in the marketplace, and lower gas prices.

Federal Judge for Southern District of Georgia
On Thursday, Augusta attorney James Randall Hall was confirmed by the Senate to serve as the next United States District Court Judge for the Southern District of Georgia. President Bush tapped Hall to fill the judicial vacancy created by the Honorable B. Avant Edenfield , who elected to take senior status effective Aug. 2, 2006. Both Senator Chambliss and I recommended Hall for the post.

Hall currently serves as a partner with Warlick Tritt Stebbins & Hall, LLP. He previously served in the Georgia State Senate as a senator for the 22nd District. He graduated from Augusta College in 1979 and from the University of Georgia School of Law in 1982. He serves on the Augusta-Richmond County Community Partnership for Children and Families and attends the Trinity on the Hill United Methodist Church. 

What’s on Tap for Next Week?

The Senate will debate a highways technical corrections bill.

Sincerely,
Johnny Isakson