Senate Republicans are worried that a legislative win for President Joe Biden could hurt them in the November election.
GOP Senator Chuck Grassley expressed concern Wednesday that passing the $78 billion bipartisan tax package, which would temporarily expand the child tax credit and restore a number of business tax benefits, could bolster Biden's reelection bid if checks are sent out weeks before November's presidential election.
"I think passing a tax bill that makes the president look good mailing out checks before the election means he could be reelected and then we won't extend the 2017 tax cuts," Grassley told Semafor's Joseph Zeballos-Roig. He added that the bill would give up some of the leverage for Senate Republicans ahead of next year's tax showdown.
Newsweek reached out to Biden's 2024 campaign via email for comment.
On Wednesday evening, the GOP-controlled House passed the tax bill with rare bipartisan support, with 188 Democrats and 169 Republicans voting in favor. It will now go to the Senate, where Democratic senators have expressed general support for the legislation and could likely tee up a vote soon.
Known as the Tax Relief for American Families and Workers Act of 2024, the bill would bolster the child tax credit that was first implemented during the COVID pandemic by providing a larger credit in the first year to low-income families. Once the deal is in full effect in 2025, it will lift at least half a million children out of poverty, the Center on Budget and Policy Priorities estimates
The tax package, however, is not widely embraced by Senate Republicans, some of whom have expressed skepticism about passing a sweeping tax bill before a potential Republican takeover of the White House. Senator Thom Tillis told Zeballos-Roig that he's advising GOP leaders in the upper chamber to hold out for a Donald Trump win before making any tax policy decisions.
Republican strategist Alex Patton told Newsweek that despite these fears, "no single thing will likely sway the upcoming election."
"It will likely be the accumulation of several events close to the election that will reach the slice of the electorate that hasn't tuned in and/or is persuadable," he said. "So in a broad sense if the economy keeps improving there is real danger of the GOP appearing to be craven opportunists if they continue to refuse to engage and keep saying 'put it all off until after the election' on this issue, immigration reform, etcetera."
Although some have suggested that it could hurt the Republican Party if Biden sends cash to Americans a month before the election, the IRS has signaled that it can enact changes within six weeks. So those direct payments could come much earlier than November and may not be top of mind when voters go to the polls.
The GOP-led House Ways and Means Committee, which helped broker the deal, issued a statement last week stating that "the legislation therefore makes it illegal for the Biden Administration to delay tax refunds for political purposes."
Grassley's remarks were criticized by Democrats who accused Republicans of withholding legislation to hurt Biden's chances of winning a second term. His comments also come just weeks after GOP Representative Troy Nehls said he wouldn't back a border security package because "I'm not willing to do too damn much right now to help a Democrat and to help Joe Biden's approval rating." The border crisis, a major weakness for the president, is the leading issue many Republicans have campaigned on.
Democratic Senator Tim Kaine wrote on X (formerly Twitter): "So let me get this straight: Republicans want to 'fix' the border but don't want to pass a bill to do so because they want to attack Biden over it. AND now they don't want to pass a tax cut for families because it's an election year? This isn't how we should be governing."
Democratic Representative Seth Moulton tweeted, "Whether it's taxes, immigration, or gun reform, listen to Republicans when they tell Americans that they don't care about governing unless there's political gain attached."
And Democratic congressional staffer Sam Jeske tweeted: "reeaalllyyyy saying the quiet part out loud here chuck."
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Katherine Fung is a Newsweek reporter based in New York City. Her focus is reporting on U.S. and world politics. ... Read more
