On FOX Business, Portman discusses Democrats’ reckless spending priorities, inflation and tax hikes

November 3, 2021

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Portman difference

Senator Portman joined FOX Business‘Kudlow this afternoon to outline his concerns over the Democrats’ reckless tax and spending bill, arguing that trillions in new spending and taxes will stifle economic growth, cut jobs, increase national debt and increase l ‘inflation. He also underscored the negative impact of soaring inflation on middle-class workers and families. Portman noted that since President Biden took office, wages have declined 1.9% after adjusting for inflation.

Portman also pointed out the benefits of the historic Law on investment in infrastructure and employment – historic legislation he helped negotiate to repair our country’s crumbling roads, bridges and other key infrastructure. The legislation, which was passed by the Senate three months ago in a bipartisan 69-30 vote, will improve competitiveness and not add to the record inflation the economy is currently experiencing.

A transcript of the interview can be found below and you can also watch the interview here.

PORTMAN ON THE TAX HIKES PROPOSED BY THE DEMOCRATS AND THE INCREASE IN EXPENDITURE:

“Yes, with almost no money. I mean, it’s amazing. So here is the situation. There had been no hearings, certainly no annotations where you draft laws, no analysis. We therefore do not know what the score of the Joint Committee on Taxation will be, nor the score of the Congressional Budget Office. All the things, Larry, that you and I are used to having to rely on to do something. It is therefore a process that is broken.

“But beyond that, the substance makes no sense. Here you have really high expenses, the highest expenses of any bill that has been passed by Congress, of anyone in the world, and you have high taxes. So that’s a prescription not only for higher inflation with more stimulus spending, but less economic growth, which equates to stagnation, which happened in the 1970s. Nobody wants to go.

“Hopefully what happened last night in Virginia and New Jersey and across the country will finally end the reconciliation discussion. And let’s focus on the realization of the infrastructure bill. It’s bipartisan, it’s something some Democrats support and would be good for the economy and counter-inflationary rather than pro-inflationary and doesn’t have a tax hike. So I hope there is a change in part.

PORTMAN ON THE IMPACT OF THE TAX HIKES PROPOSED BY THE DEMOCRATS:

“Yes, absolutely. It will affect the economy. What the Joint Committee on Taxation, which is a non-partisan group, says it’s not a Republican point of view, it’s widely shared by analysts, is that if you tax the corporation, the entity that is injured is the worker. Thus, workers ‘wages, workers’ benefits and 70 percent of the benefits of the tax cut went to them. Seventy percent of the tax increase will hurt or disadvantage them at a time when wages are already under pressure. By the way, wages fell 1.7% under the Biden administration after inflation. Think about it. After growing 3% for 19 consecutive months before the pandemic under the Trump administration, I’ll call it the Kudlow administration, you now have this reversal.

“The only thing they talk about that I’m interested in is the SALT tax, because, remember, we decided in 2017 we were going to cut taxes, but we weren’t going to allow people who lived in very high state tax states to be able to take full advantage of it, as it would be the taxpayers in my state of Ohio subsidizing the taxpayers in New York, for example, so that they could have very high taxes and get a deduction. So it was good policy. They now want to turn the tide. It would cost about $ 475 billion in further tax increases elsewhere if they did. Fifty percent of the profits from what they want to do would go to the first percent, which seems to be counted whatever they say. So at least we have to go through hearings and be scrutinized so that we know what’s going on. “

PORTMAN TOUTS BIPARTISAN INFRASTRUCTURE LAW:

“Well, there are payments, including, by the way, the reallocation of the money that came out under COVID that was never spent, which I think is a great payment. And it was a big fight to get Democrats to accept that. But also, there will be a lot of economic growth that will occur. I mean, you look at the infrastructure analysis, just like frankly in the Trump administration’s budget on two occasions there was a $ 1.5 trillion infrastructure package. The CBO would say it wasn’t paid, but people knew it was actually good for the economy. It is a long-term investment in durable assets. This will make the economy more efficient and more productive. So it will come back to help us. So I see it differently from stimulus spending, which is money now in people’s pockets, which will add to the demand for the economy. The infrastructure is longer term.

“By the way, very little money will come out next year, two, three years. He will go in four, five, 10, 15 years to help develop our infrastructure. To make sure the ports are working better. To be sure we can move the right rail, to make sure we have bridges that don’t collapse, and that will make the economy more efficient. In my hometown of Cincinnati, we have a bridge where 71 and 75 meet. Traffic jams every day, not just at rush hour. And the economic impact of that is really negative. So opening that up, creating a better and safer means of transportation is going to help the economy. “

PORTMAN ON DEMOCRAT BUDGETARY GIMMICKS:

“Yes it does. And Penn Wharton did a study that came out two days ago. I spoke last night about this in more detail. But what he’s saying is that he it’s actually a $ 4 trillion bill because there are a lot of budget gimmicks in there to try and make expensive new social programs look cheaper. More specifically, they end to a number of them, knowing that once you start the child tax credit, let’s say the new increase of $ 3,600, given the history, you’re not going to reduce it.

“So they’re not paying for the programs because it’s really not $ 1.8 trillion or whatever,” they say, by the way, which would be on par with the highest spending ever. By the way, four trillion dollars would be twice as much as a single bill ever spent in the United States Congress, only twice as much as the $ 1.9 trillion in March. So in terms of spending this year, that would obviously be just astronomical. And not only would increase inflation, but also put our debt and deficit in an untenable position, debt as a percentage of our economy. The percentage of GDP, as you know, is reaching levels that we have never seen in the history of our country. We thought it was WWII, but now it’s even worse.

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