Larry Kudlow: Why are GOP senators thinking about a bill with a $100 billion tax hike?
FOX Business host Larry Kudlow lists various reasons as to why the omnibus spending bill should not be passed in the Senate on ‘Kudlow.’
There are a lot of reasons why Senate Republicans should kill the omnibus spending bill. Many reasons, but perhaps the most important is they are betraying the voters who elected a Republican House.
If the omnibus bill passes, then the Republican House will have to wait nearly a year before they can change priorities, restrain spending and promote a true prosperity agenda. As Senator Marsha Blackburn said on our show last week, "Let the House Republicans take a swing at this thing."
In a real sense, if the Senate Republican leadership and the Republican rank and file vote for the omnibus, they are betraying the voters and they're also betraying Kevin McCarthy. As I mentioned last evening, the Republican Party from top to bottom should be lining up to support Mr. McCarthy and herald a new era in the U.S. House of Representatives.
But, if Senator McConnell and the other leaders and the rank-and-file vote for the omnibus, they will betray millions of voters and the hopes of a new Republican agenda in the House and a new Republican agenda in the House can build a new policy foundation for a Republican Senate and a Republican White House in 2024. This is the crucial logic.
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Then again, Senator Rand Paul was right when he told us last week that Senate Republicans have so far completely "abdicated the power of the purse" and that they have essentially "emasculated" themselves. Tough stuff!
Remember, as Steve Moore has told us, 41 Senate Republicans can stop the omnibus and finally force the imposition of budget spending caps that have been in place over 10 years, but are routinely waived — no matter who's running the Senate. Republicans waive it. Democrats waive it. They are all complicit in a war against American taxpayers.
Now, before this year runs out, there are still 50 Republican senators. Mr. McConnell, Mr. Thune and the other GOP leaders should be whipping to garner 41 votes to restore the budget caps and stop the omnibus.
The automatic across the board savings might come to $150 billion, which is a darn sight better than a lame-duck spending spree of nearly $2 trillion, but I doubt that’s what they are going to do. It’s too bad. I am offering up my advice and suggestions. It won't be the first time it's rejected, nor it’ll be the last, but I think my cause is just.
Let me just add that Mr. McCarthy was absolutely explicit last night, when asked if he opposed the omnibus bill.
Larry Kudlow: "Anonymous Republican Senate voices, people who are afraid to speak on the record. They're saying that Kevin McCarthy really favors the omnibus spending bill and really doesn't want to get down to business right away. What is your unequivocal response to that?"
Kevin McCarthy: "That's a lie. Hell, no."
There you have it. "That’s a lie. Hello, no." The House Leader couldn't be any clearer, could he?
So, at risk of being redundant and rejected, I repeat: Senate Republicans are betraying the voters who elected a GOP House, and they are betraying Kevin McCarthy. They think they know best. I think they are wrong. It's not personal — they are long-standing friends of mine, but we have a big disagreement on policy here.
There are other reasons to kill the omnibus bill, like we don't need another $2 trillion in spending and borrowing. It all has inflationary potential. Frankly, I suspect there's a lot of COVID assistance money that Democrats are building into the mandatory baseline maybe forever. Whether we ever find out about that, remains to be seen.
Now, as Dan Clifton reports, there's a $100 billion corporate tax hike in this bill, which is insane and no Republican should support it. There's also an IRA tax hike coming down the road. We've already had a 15% minimum corporate tax in the fraudulently named "Inflation Reduction Act" bill and a 1% tax on corporate buybacks, which is stupid. Janet Yellen is in cahoots with the Europeans to slap a 15% minimum tax on American companies operating abroad — also very stupid.
Immediate bonus depreciation drops off by 20% January 1st … I don't hear GOP senators howling about that either. I thought the Republican Party was against tax hikes. I thought the GOP criticized Joe Biden during the midterm election over tax hikes.
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