Ways and Means Republican Leader Kevin Brady (R-TX) appeared on CNBC’s Squawk Box to discuss the economic harm looming from Democrats’ hidden tax increases in the recently enacted so-called “relief package,” only 9 percent of which goes towards dealing with coronavirus.
- We know we need to focus on the vaccines and distribution. On the economic side, we need to focus on helping Main Street businesses survive. The key now is reconnecting workers back to their jobs. This package could have done that for one quarter of the price. Less than a dime of every dollar goes to vaccine or goes to Main Street survival. It fails on what our priorities are now.
- Where is the need? Before this package was passed, for a family of four, with one of the parents having lost their job, we’ve provided almost $40,000 of help between state and local benefits, unemployment, and other elements. This package could have been focused to those who lost their jobs or had a loss of income, not just simply spending $422 billion on the stimulus checks that won’t jolt the economy or go to those most in need.
- Democrats included three tax hikes totaling $60 billion in their package, and in the next package we’re going to see real serious tax increases on the corporate side, which will drive us to the least competitive tax rate in the world, and will have an impact on the economy, jobs, and wages.
- In a Zoom call with Secretary Janet Yellen, I noted that people don’t realize the corporate rate cuts were almost paid for, 85 percent of them, by provisions that industry gave back, special interest provisions, to be able to lower that rate. If we raise the corporate rate again to 28, and leave those “paid-for” provisions in place, you’ve slowed this economy and slowed investment much more than you think you are.