Democrats will push for tax increases immediately following passage of their partisan $1.9 trillion bill, warned Ways and Means Republican Leader Kevin Brady on Fox Business. In an interview with Neil Cavuto, Brady outlined how the Democrats’ bill will do nothing for the economy, and their push to increase taxes will make the economy even worse.
To watch the full interview, click here.
A transcript appears below.
CAVUTO: I know you have serious issues with this $1.9 trillion stimulus plan, but as you know, it looks like it will get passed presumably in a House bill tomorrow, likely tomorrow. But the one thing I noticed that isn’t on anybody’s agenda yet is the increase in taxes, corporate taxes, taxes on the very upper income. I haven’t heard a peep about that, and I’m wondering why. Do you know whether the administration is negotiating with Republicans to get their support on infrastructure?
REP. BRADY: Tax increases are coming, there’s no question about it. They intend to pair it with an infrastructure bill–although right now, they’re spending almost $2 trillion with almost no impact on the economy. It’s why the White House refuses to give us an estimate of how many jobs will be created in this nearly $2 trillion “stimulus.” But they’re thinking before Memorial Day, packaging tax increases on businesses, on income, perhaps on payroll, on wealth and energy in that type of bill. They don’t intend to have any discussions with Republicans. They’ve made it very clear based on this Covid package, they don’t see a need to have any conversation with us. And maybe on the tax side for good reason. You wouldn’t raise these taxes in good economic times, much less trying to recover from a pandemic.
CAVUTO: So you think that the infrastructure bill will be the one in which these tax hikes are pushed, that the corporate rate rises to 28% — rises to 28% from 21%, all of that will occur in that package?
REP. BRADY: Yes, that is the conventional wisdom right now. It could change, but I think Democrats have seen this move so quickly without a single Republican conversation that my guess is they’ll run the same play over again like this Covid bill. It’ll actually hurt the economy as well.
CAVUTO: All right. I threw a lot at you there, Congressman, and you were gentleman enough to answer any and all. I appreciate that.