Brady: BBB Worsens Inflation, While CHIPS Narrow Tax Subsidies Do Little for Competition with China
Democrats’ “slimmed down” Build Back Better proposals slow the economy and land tax hikes on Americans and small businesses as they deal with 40-year high inflation, Republican Leader on the Ways and Means Committee Rep. Kevin Brady (R-TX) said on “Mornings with Maria” on Fox Business. In a conversation with Maria Bartiromo, Rep. Brady discussed Democrats’ CHIPS tax credit that fails to address competition with China, Affordable Care Act expansions that keep workers disconnected from work, and President Biden’s China tariff gimmicks that won’t bring down rising prices in a meaningful way.
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CHIPS tax credit fails to address the broader challenge of competition with China. Republicans have proposed tax incentives that help all of our industries compete and win.
“Microprocessors are among our top four exports and frankly, we produce almost half of all our semiconducting chips here in the United States. So this is a very strong industry. I don’t think the additional $24 billion of tax subsidies are warranted in this case, and I think we’re missing the bigger picture here: China, in their ‘Made in China 2025’ economic plan, is seeking to dominate 10 manufacturing and technologies in the world. It doesn’t make sense to me to cede to China nine of those industries and provide tax breaks to one.
“Republicans have proposed tax incentives that help all of our industries to compete and win against China, and that includes doubling the research and development tax credit. That means guaranteeing 100 percent expensing so they can write off expensive equipment, whatever industry they’re in, and then of course, making sure R&D is fully deductible.”
READ: One Pager: CHIPS Subsidy Plan Fails to Address Broader Challenge of Competition with China
Senate Democrats are reportedly trying to revive more crippling tax hikes at the worst possible time.
“Democrats are pretty desperate right now. Polling numbers are bottomed out and frankly, may go lower. They’re going to push this ‘slimmed-down’ Affordable Care Act expansion, which, by the way, is a barrier to returning to work. About a half million Americans get better health care jobless than they do reconnecting to work. That’s a major mistake.
Democrats’ Washington price controls on medicine ensure fewer cures for the future.
“Democrats undercut the competitive market with a price control system that also discourages development of new cures. It doesn’t make any sense. It was encouraging to see Senator Manchin call a pause on this, but the truth of matter is our economy is not going to improve anytime soon.
“I predict throughout September 30 when they can use reconciliation to raise taxes, you’re going to see inflation continue to rage, you’re going to see a slower economy, worker shortage, and a cruel economy. There is no right time to raise taxes on small businesses and workers, but especially not heading into a recession.
READ: Brady: We Can Lower Costs for Patients Without Sacrificing Cures
Democrats’ Affordable Care Act expansions keep Americans disconnected from work and will keep inflation raging for higher and longer.
“This is for some reason the highest priority on health care among Democrats in Congress and the President. They are wed to the Affordable Care Act and think these expansions are remarkable.
“But the University of Chicago estimates it erects a barrier for about half a million to return to work. And right now, inflation is all about the workers. The longer people stay home or are disconnected, the longer and higher inflation remains.”
President Biden’s China tariff cuts are a political gimmick that won’t lower inflation.
“This is a political gimmick, like tapping the Strategic Petroleum Reserve or the gas card gimmick, the President’s going to try to lower tariffs on a few consumer items. It will have no impact on inflation whatsoever, and then probably keep much of the rest of the tariffs in place. The way he’s headed, I don’t see anything significant there.”