Rep. Matt Gaetz of Florida on Wednesday slammed a tax measure applauded by many of his fellow Republicans, including House Speaker Mike Johnson, as well as Democrats.
The Fort Walton Beach Republican said the $79 billion proposal contained some provisions that would support the GOP’s pro-growth agenda.
But, he added in a House floor speech, “This is not a tax bill. This is a welfare bill masquerading as a tax bill.”
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“This is how the bipartisan agreement came together,” Gaetz continued. “If the Republicans were willing to give the Democrats what they wanted for illegal aliens to get massive subsidies and welfare, then the Democrats were willing to give the Republicans what they wanted on a bunch of business welfare.”
One key provision of the bill, known as the Tax Relief for American Families and Workers Act, would create a path for more families to have an easier time qualifying for the child tax credit, which is an offset to users’ federal taxes based on the number of children they have. In some instances, those claiming the benefit can qualify for a tax refund.
The bill also would increase the amount of the credit from $1,600 for each child to $1,800 for 2023, $1,900 in 2024 and $2,000 in 2025.
On the other side, the proposal revives some Trump-era deductions for businesses. Those include deductions for costs for research and experimentation done inside the U.S., investments in machinery and equipment, and expenses for interest expenses.
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Anti-tax activist Grover Norquist claimed the bill was a major victory for Republicans.
“This is a Republican win, because we will have forced [President Joe] Biden to sign the extension of the Trump tax cuts, and he got elected promising to abolish the Trump tax cuts,” Norquist told The Washington Times. “So, he’s gonna be out there extending the program, parts of the Trump tax cut.”
Norquist added, “This is such a powerful issue, that we’re overwhelming the Democrat opposition. They’re signing it and trying to smile, but we just won this fight.”
Yet the Wall Street Journal, in an editorial, claimed liberal Democratic Sen. Ron Wyden, the Democrats’ chief negotiator, played GOP lawmakers. The Journal asserted the GOP is now on the hook for “a stealth welfare expansion of child tax credits.”
Gaetz, citing earlier comments by fellow Republican Rep. Thomas Massie, noted that it’s not a tax cut if the federal government hands a refund check to someone who does not actually pay taxes.
“That’s not tax policy. That’s welfare. That’s just giving people money that didn’t initially pay it in, and a bunch of them are here illegally,” said Gaetz.
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As for the business tax cuts, Gaetz said those were so targeted that they amounted to “corporate welfare” for those who can claim them.
They also resemble the tax credits given to left-wing companies under the Green New Deal, which Republicans allegedly oppose, he added.
“This is not a tax bill,” he concluded. “It is a welfare bill in drag, and that may be appealing to some of the proponents.”
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