Ranking Member McGovern on House Floor: Republicans’ Tax Scam 2.0 Doubles Down on Policy that Rewards the Wealthy & Well-Connected

Sep 27, 2018

Ranking Member James P. McGovern

House Committee on Rules

Representing Massachusetts' 2nd District

FOR IMMEDIATE RELEASE

Thursday, July 26, 2018

CONTACT

Jeff Gohringer (202) 225-2888

 

Ranking Member McGovern on House Floor: Republicans’ Tax Scam 2.0 Doubles Down on Policy that Rewards the Wealthy & Well-Connected

It’s another budget-busting bill that adds $3 trillion to the deficit & threatens the future of programs like Medicare and Social Security

**Video of his full speech is available online here**

 

WASHINGTON, DC — On the House Floor today, Rules Committee Ranking Member Jim McGovern (D-MA) spoke out against Republicans’ tax scam 2.0, which explodes the deficit by more than $3 trillion according to the non-partisan Tax Policy Center, threatening the future of vital programs like Medicare and Social Security. This package doubles down on the Republicans’ first widely unpopular tax law. A recent Republican poll found that only 37 percent of Americans approve of the law, with 60 percent saying the tax scam will either have a negative impact or no effect at all on their families while the wealthy get a windfall.

“Nine months ago, as the already unpopular Republican tax scam was making its way through Congress, Speaker Ryan stood in the Capitol and made a bet. He wagered that, ‘Results are going to be what makes this popular.’ Today, the results are clear. And they’re not what the Majority and President Trump promised. Big corporations have gotten a windfall. Workers have gotten laid off, jobs are being shipped overseas, and the richest one percent is getting 83 percent of the law’s benefits,” McGovern said on the floor. “That is why we’re here today with tax scam 2.0, Mr. Speaker. Because the Majority’s bet is turning out to be a losing one.” 

According to a recent poll commissioned by the Republican National Committee, by a 2-to-1 margin, respondents said the first GOP tax scam benefits “large corporations and rich Americans” over “middle class families.” That same poll also found that Americans worry that the tax law will lead to cuts to Social Security and Medicare, with most voters believing the GOP wants to cut both programs to provide tax breaks for corporations and the wealthy.

Despite this law’s unpopularity, Republicans are doubling down with this deficit-exploding gift to their wealthiest donors. Tax scam 2.0 is another budget-busting bill that adds a staggering $3 trillion to the deficit, according to the non-partisan Tax Policy Center.

It’s being considered at a time when the Congressional Budget Office recently found that Congressional Republicans and the Trump administration have blown a hole in the federal budget, increasing the 2018 deficit by 32 percent to nearly $900 billion. One of the main causes is the first GOP tax scam bill.

Since passage of that bill last year, the Medicare and Social Security Trust Fund released their annual report stating that Medicare was projected to become insolvent three years earlier than projected due to decreased revenues because of the new law. Republicans, including President Trump’s chief economic advisor Larry Kudlow, are now calling for new cuts to Medicare and Social Security.

Although House Republicans used special fast-track procedures to provide tax cuts for the wealthy and large corporations as part of their first tax scam, they aren’t using them for tax cuts they claim are geared toward the middle class. Tax scam 2.0 is currently unlikely to even get a vote in the Senate.

“Every middle class American should realize this: with this Majority, the wealthy and the well-connected get a windfall under a special, quick process. Their tax cuts were virtually guaranteed under a rigged system. Your tax cuts aren’t getting that same urgency,” McGovern said on the floor. “That fact gives away the whole game. This isn’t about policy. This is about politics.”

This package of bills — H.R. 6756, H.R. 6757, and H.R. 6760 — is being considered under Republicans’ 99th, 100th, and 101st closed rules of the 115th Congress. Closed rules block all amendments from both Democratic and Republican members. Republicans already turned this Congress into the most closed Congress in history earlier this year.

“Today, the Majority is taking the most closed Congress in American history to a whole new level. Because tucked inside this measure is the Majority’s 99th, 100th, and 101st closed rules of this Congress. There has never been a moment like this in American history,” said McGovern. “I am not suggesting that everything the House considers should be under an open rule. There are times when a closed rule might be necessary. But more than 100 closed rules? There is no justification for that.”

 

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