Wyden tax scheme voted down 48-44

By Taxpayers Association of Oregon
OregonWatchdog.com

The Wall Street Journal Editorial Board explains the bill,

“The Senate voted 48-44 not to advance the tax bill negotiated by Oregon Democratic Sen. Ron Wyden and GOP House Ways and Means Chairman Jason Smith. The bill, which passed the House this year, combined the renewal of expiring business tax provisions such as bonus depreciation with an expansion of the $2,000 child tax credit. The business community lobbied hard for the measure, so all the more notable that GOP Senators noticed they’d been outfoxed by Mr. Wyden. The bill’s changes to the child tax credit are arcane but amount to large cash subsidies to households that owe no income tax. The changes are temporary, but Democrats vow to make this a guaranteed income for parents. The bill’s changes mean a parent of three could claim $4,800 in cash credits with only about $13,000 of earnings, down from the roughly $34,500 required under the current credit system, according to estimates from the Foundation for Government Accountability.Democrats have maligned Republicans as indifferent to struggling children, but the GOP can defend steady work as essential to improving a family’s circumstances. The discipline and norms of parents and neighbors who work are crucial to helping children escape poverty, and this is one of the few cultural choices government can influence through the welfare state.”

CBS explains that critics say the bill was set-up-to-fail;

“Sen. John Cornyn, a Texas Republican, said on Wednesday that the Senate should leave the issue until next year to come up with a better product. He said on the Senate floor that it’s a “designed-to-fail vote” and not a serious way to legislate. And he added that although the bill cleared the House, the Senate needs to shape the legislation, saying the upper chamber “is not a rubber stamp.” Cornyn claimed that Senate Democratic leadership “sat on the bill intentionally for six months and waited until the final hour before a five-week recess to bring it to the floor,” suggesting that it’s a show vote planned purely for use as a talking point on the campaign trail.”

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