Wu's Whoppers, today's version

The setup:

http://www.house.gov/apps/list/press/or01_wu/pr100810edufunds.html

In the above-linked release, David Wu claims credit for his vote on H.R. 1586, which basically backstopped state budget shortfalls with federal (i.e. taxpayer) money. 

This was done by changing the tax rules for multinational corporations, reducing their tax credits for foreign taxes paid.

Wu's words:

“Today Congress is helping fill in the budget hole that states like Oregon are facing so that we can keep teachers in schools, firefighters in firehouses, and cops on the beat.

“Thanks to this bill, 2,000 Oregon teachers will be able to stay in our schools—which means that 2,000 families will also be able to keep food on the table and continue to be a productive part of our economy.

“And on top of that, the bill’s funding for Medicaid fulfills our moral duty to assist with health care for the poor.

“This bill is about doing the right thing—and it’s about jobs in Oregon and America.

“The icing on the cake is that we’re not adding a penny to the deficit because we’re paying for these programs by closing a tax loophole for corporations moving jobs overseas.”

Wu's whopper:

1. The states in the most trouble will get the most money.  So, states like California (which has run itself into the ground in an almost epic way) will get lots of federal money, whereas states that have run their economies well (such as Utah) will get very little assistance.  In other words, it is Darwinian in the reverse...survival of the least fit.
2. Wu says it is about "doing the right thing".  Would the right thing not include accountability?  Where is the assurance that the state government will manage this money any better than they have already managed their economy?  Oregon was in trouble even before the economy fell off a cliff - the truth is this giveaway is like giving gasoline to a pyromaniac.
3. Wu says that "we are paying for these programs by closing a tax loophole for corporations moving jobs overseas."  This is a lie.  A company that pays foreign taxes will have its taxes increased.  It has nothing to do with moving jobs overseas.  For example, if Intel has a business in France, and sells products there, and hires French employees, it would stand to reason they would pay French taxes on that income.  It used to be that a corpoation got a tax credit for foreign taxes paid...this has been significantly reduced  With the economy the way it is, this will certainly hurt large companies.

Work for a large company?  Know anyone who does?  You are now more likely to get laid off, thanks to David Wu.