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As tax plan advances, GOP’s Grassley says the quiet part loud

Democrats are claiming that GOP officials are putting party over country — and some Republicans are effectively admitting that the accusations are true.

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Those who keep an eye on Congress know that the institution is slow, bitterly divided, and seemingly incapable of advancing compromise measures. But once in a great while, lawmakers manage to defy expectations, move with surprising speed, and approve a bipartisan agreement. NBC News reported overnight:

The House voted Wednesday night to pass a $78 billion tax package that includes an expansion of the child tax credit, sending it to the Senate, where its path is uncertain. The Republican-led House passed the bipartisan measure 357-70, using a fast-track process that requires a two-thirds majority. The legislation received broad support from each party: 169 Republicans and 188 Democrats voted for it, while 47 Republicans and 23 Democrats voted against it.

It was just two weeks ago when Missouri Rep. Jason Smith, the Republican chairman of the House Ways and Means Committee, and Oregon Sen. Ron Wyden, the Democratic chairman of the Senate Finance Committee, announced a breakthrough on tax policy. The former had secured an extension of Trump-era tax breaks for businesses, while the latter secured an expansion of the child tax credit.

In a written statement, Wyden explained, “Fifteen million kids from low-income families will be better off as a result of this plan, and given today’s miserable political climate, it’s a big deal to have this opportunity to pass pro-family policy that helps so many kids get ahead.”

As we’ve discussed, this isn’t as ambitious or as generous as the original Democratic policy from 2021, but this is a plan that would help millions of families.

The legislation faced some obstacles, including criticisms from the left and right, but it nevertheless cleared the lower chamber with 357 votes. It now heads to the Senate, where it will need at least 60 votes to advance.

Given the margin in the House, and the scope of the bipartisan support, that might not seem like much of a challenge, but one GOP senator summarized a core problem. NBC News also reported:

Sen. Chuck Grassley, R-Iowa, cast doubt Wednesday on passing a bipartisan tax bill, saying it could make President Joe Biden “look good” and improve Democrats’ chances of holding the White House in the 2024 election. Grassley said re-electing Biden could hurt Republican hopes of extending Trump-era tax cuts.

“Passing a tax bill that makes the president look good — mailing out checks before the election — means he could be re-elected, and then we won’t extend the 2017 tax cuts,” the Iowa Republican said.

For now, let’s not dwell on the fact that there are no provisions in the legislation related to sending out “checks,” which is a basic detail that Grassley — the top Republican on the Senate Budget Committee, and the former chairman of the Senate Finance Committee — really ought to understand. [Update: See below.]

It’s the other part of Grassley’s answer that’s especially important.

The problem is not that the Iowa Republican opposes the underlying legislation; the problem is that his principal concern is avoiding governing successes that might make President Joe Biden “look good” in an election year.

The longtime GOP senator could put country over party, but by his own admission, he’s reluctant to do so. To hear Grassley tell it, reducing child poverty is fine, but helping the Republican Party’s electoral strategies is better.

Some might be tempted to believe that both parties think this way. That’s wrong. As recently as 2020, congressional Democrats put aside partisan considerations and worked to put money in Americans’ pockets during a crisis — without regard for whether it might improve Donald Trump’s re-election prospects. The focus was on families’ needs, not partisan tactics.

Four years later, Grassley’s instincts push him in the opposite direction. He isn’t even being subtle about it.

What’s more, he’s not alone. About a month ago, Republican Rep. Troy Nehls said he’d oppose a different bipartisan compromise for the same reason. “Let me tell you, I’m not willing to do too damn much right now to help a Democrat and to help Joe Biden’s approval rating,” the Texan said. “I will not help the Democrats try to improve this man’s dismal approval ratings. I’m not going to do it.” Nehls echoed the same sentiment this week.

In other words, Democrats are arguing that GOP officials are deliberately refusing to solve problems because they care more about elections and partisan games — and at least some Republicans are effectively admitting that the accusations are true.

Update: I heard from Sen. Grassley’s communications director, who said that in the wake of the House vote, the Iowan “looks forward to providing input when Chairman Wyden schedules a Finance Committee markup.”

As for the senator’s reference to “checks,” she added, “The IRS has conveyed that, if passed, taxpayers who have filed their returns on or before the date the legislation is enacted will likely receive two refunds (with the second refund issued 6 to 12 weeks later). That was the scenario to which Senator Grassley was referring — he was not making a direct comparison to monthly checks like those included in the 2021 child tax credit and which are the focus of the Semafor piece you linked [to].”