Business

Perry changes sides, now opposes Ex-Im

by Kevin Cirilli - 05/05/15 9:31 PM ET

Former Texas Gov. Rick Perry (R) said Tuesday he opposes reauthorizing the Export-Import Bank, a reversal in his position on what’s become a divisive policy issue within the Republican Party.

In a Wall Street Journal op-ed published online Tuesday night, Perry wrote he “can’t get on board” with reauthorizing the 80-year-old bank.

Congress must reauthorize the bank by June 30, or it will shut down.

{mosads}”We won’t have the moral credibility to reduce corporate taxes if we continue to subsidize corporate exports for corporations that already enjoy low effective tax rates, like General Electric and Boeing,” Perry wrote.

“We won’t be able to give businesses more regulatory latitude if we continue to operate a government bank with an emerging record of corporate corruption.”

More than one-third of the bank’s total loan commitments between 2007 and 2013 went to Boeing, according to a 2014 Standard & Poor’s report.

Perry, a could-be 2016 presidential contender, joins other potential 2016 GOP White House candidates in opposing the bank, including Sen. Marco Rubio (R-Fla.), former Florida Gov. Jeb Bush and Wisconsin Gov. Scott Walker.

In June 2014, Perry wrote a letter to Congress urging lawmakers to reauthorize the bank.

Congressional Republicans are deeply divided about what to do with the bank. Sen. Lindsey Graham (R-S.C.), who has talked of presidential run, and other Republicans argue that the bank helps sustain U.S. jobs.

Former Sen. Rick Santorum (R-Pa.), who might also run for president in 2016, supports reauthorizing the bank.

Ex-Im backs American companies looking to do business in emerging markets overseas to help keep U.S. businesses competitive against businesses in China and Western European countries.

The business community is backing the bank, as are most Democrats, but it’s unclear whether House Republicans will bring a reauthorization bill up for a vote before Ex-Im’s charter expires.

Supporters of the bank argue that the big businesses — like Boeing and Caterpillar, which the bank supports — help sustain those companies’ small supply-chain businesses.

“Next month, the bank comes up for reauthorization again — but this time I can’t get on board,” Perry wrote. “I have been deeply disturbed by recent revelations of corruption and bribery at the institution.”

Justice Department officials said last month that former Ex-Im employee Johnny Gutierrez pleaded guilty to accepting bribes in relation to financing projects at the bank. All of the money has since been returned.

Tags Export Import Bank Rick Perry