GOP senator criticizes bipartisan tax deal
Senator Tillis Criticizes Bipartisan Tax Bill, Hopes It Fails
Senator Thom Tillis, a prominent member of the Senate Committee on Finance, expressed his disdain for the bipartisan child tax credit and business tax bill on Friday, stating that he hopes it never reaches a vote.
The bill, which passed the House with a strong majority, is facing opposition in the Senate, particularly from Republican lawmakers. The decision to hold a markup in the Finance Committee or proceed with a floor vote is still undecided.
“If it died, I’d be happy,” Tillis said in an interview with the Washington Examiner.
Tillis has voiced multiple concerns about the $78 billion legislation and believes that other Republicans on the Finance Committee share his perspective. He insists that significant changes need to be made for the bill to be viable and vows to rally every Republican member against it.
As the week progresses, Tillis believes the chances of the legislation passing are diminishing.
“I think it has failed to achieve orbit,” Tillis said. “And I want it to come crashing back down.”
A senior aide familiar with the negotiations expressed doubt about the bill’s progress.
“House members haven’t yet fully appreciated the single-digit chances that this bill is passed or even considered by the Senate — and the significant changes that will be needed at the committee level before it even gets to that point,” the aide told the Washington Examiner.
Tillis’s main concern revolves around the provision in the bill intended to fund the tax cuts.
The bill proposes using changes to the pandemic-era employee retention tax credit (ERC) to cover the costs. These changes would involve stricter enforcement and penalties for fraudulent ERC claims, as well as an early end to claim processing.
The Joint Committee on Taxation estimates that these ERC changes would result in approximately $77 billion in savings, making the overall bill deficit-neutral. However, Tillis and other Senate Republicans argue that this provision is deceptive, as it essentially scales back a pandemic-era program that was already contributing to the national debt.
“How in the hell can you have as a pay-for a COVID-era program in the Employee Retention Tax credit that didn’t have a pay-for,” Tillis said, noting that the program ended up costing much more than anticipated and is rife with fraud.
“Hey, here’s a hint: We ought to go after those fraudulent payments and then put it back into the Treasury,” he said. “It’s just a gimmick.”
In addition to the child tax credit, the bill includes various provisions for businesses. It seeks to extend two significant tax deductions for investments that were part of the 2017 GOP tax overhaul but have since expired. Reinstating these write-offs is a priority for the corporate sector.
Despite the potential failure of the bill in the Senate, the bipartisan passage of the tax package in the House is seen as a legislative victory for House Ways and Means Chairman Jason Smith. Smith negotiated the legislation directly with Senate Finance Committee Chairman Ron Wyden.
However, the bill’s fate is further complicated by the fact that it is an election year. Senator Chuck Grassley, another member of the Finance Committee, believes that expanding the child tax credit during an election year could benefit President Joe Biden’s chances of re-election. Biden has already endorsed the legislation, adding to the political complexities surrounding it.
Tillis hopes that Congress can address the expired tax provisions next year but does not believe that the current bill is a viable solution for Senate Republicans.
“You want to talk about a child tax credit bill that’s coming together with tax extenders for basically everything that we did in [the 2017 tax bill]?” Tillis said. “I’ll talk about that, and we’ll figure out a way to pay for it. But not this half-baked, and I say baked charitably, idea.”
What are the concerns raised by Tillis and his supporters regarding the bipartisan tax bill and why do they believe it does not adequately address them
Ogram that has been widely utilized by businesses, particularly small businesses, to survive the economic impacts of the pandemic.
In an op-ed published by The Wall Street Journal, Tillis wrote, “While I support responsible tax cuts and believe they are a vital tool for economic growth, using the pandemic-era employee retention tax credit as a way to fund these cuts is unacceptable. We should be focusing on innovative methods to stimulate the economy, not stripping away support for struggling businesses.”
Many Democrats, however, argue that the proposed changes to the ERC are necessary to prevent fraud and abuse. They contend that the pandemic has created opportunities for dishonesty in tax claims, and stricter enforcement measures are warranted.
Despite the pushback, the bill has garnered support from many Democrats and some Republicans. House Speaker Nancy Pelosi has championed the legislation as a way to support working families and rebuild the economy. Some Republicans in the Senate also see the bill as a potential opportunity to showcase bipartisan cooperation.
However, Tillis and his supporters remain steadfast in their opposition. They believe that the bill, in its current form, does not adequately address the concerns raised by Senate Republicans. Tillis vows to push for significant changes to the legislation before he can even consider supporting it.
As the debate continues, the fate of the bipartisan tax bill remains uncertain. While the bill passed the House with a strong majority, its future in the Senate is far from guaranteed. Tillis and other Republican senators will continue to voice their concerns and advocate for changes, potentially derailing its progress.
As for Tillis, he is resolute in his goal of seeing the bill fail. He believes that the American people deserve a better bill that truly benefits them and the economy. Whether his hopes come to fruition remains to be seen, but his opposition highlights the challenges faced in achieving bipartisan consensus on tax legislation.
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