Republicans ready to defeat tax bill to help Trump
A tax bill with bipartisan support passed in the House on a 357 to 70 to vote. The bill, if approved by the Senate, would be a significant achievement because it expands the amount of the child tax credit available to lower-income familiesâa key Biden objective. In exchange, the bill would maintain business tax deductions scheduled to expire. The details are here: WaPo, House votes to expand child tax credit, beef up corporate tax breaks. (Accessible to all.)
The fact that the bill made it through the fractious House should be a good sign of likely passage in the Senate. Sadly, it is not. Why? Because Senate Republicans donât want to give President Biden a âwinâ in an election year. Sound familiar? See USA Today, GOP senator doesnât want to pass a tax bill because it could make Biden âlook goodâ.
Per USA Today, Senator Grassley said,
Passing a tax bill that makes the president look good â mailing out checks before the election â means he could be re-elected, and then we wonât extend the 2017 tax cuts.
Not to be outdone, Senator Mitt Romney said he would oppose the bill because it would turn into âanother entitlement program which is massively expensive.â
Grassleyâs comment is telling on many levels. First, it contains the naked admission that Republicans are no longer working to serve the American people but are, instead, concerned only with serving their overlord, Donald Trump.
Moreover, Grassley is wrong in asserting that the bill will âsend checksâ to Americans in an election year. The child tax credit is just thatâa tax credit offsets taxes owed. If a taxpayer owes no tax, then the tax credit can generate a refund (up to $1,600).
Worse, Grassley opposes the bill in the hope that Trump will be able to extend his 2017 tax cuts for millionairesâwhich added $3.5 trillion to the deficit (through 2033). Extending those tax cuts would increase the deficit even more.
To increase the likelihood of granting windfall tax cuts to the nationâs top income earners in another Trump administration, Senators Grassley and Romney want to deprive tax benefits to the working poorâbenefits that Romney derisively calls âentitlements.â
Romney, a former hedge fund manager, has no problem with the âcarried interest deductionâ for hedge fund managers, which generates billions in tax deductions for the nationâs wealthiest billionaires. In Romneyâs view, the carried interest deduction isnât an âentitlementâ because billionaires and millionaires should get to keep their money free of taxes because they are âspecial.â
We once again stand at the precipice of legislative action that will benefit the American peopleâbut Republicans oppose it because doing so is contrary to Donald Trump's partisan interests. Donât believe me? Just ask Senator Chuck Grassley.
Robert B. Hubbell Newsletter