Calling Balls and Strikes on the Wyden-Smith Tax Bill

Calling Balls and Strikes on the Wyden-Smith Tax Bill The Good — Cuts Taxes, Helps Beat Back China, and Holds The Line on SALT

• Promotes business competitiveness by cutting taxes on R&D & pro-growth investments. • Bolsters Taiwan and helps America decouple from China by ending double taxation on

businesses that operate in both the United States and Taiwan. • Holds in check the SALT deduction (a subsidy for runaway spending at the state level). The Bad — Increases Wasteful Spending and Coopts the Child Tax Credit

• Increases funding for the Low-Income Housing Tax Credit (LIHTC), a wasteful program

that does little to encourage the construction of more affordable housing for Americans. • Expands the federal government’s role in disaster relief. • Transforms the Child Tax Credit (CTC) into yet another welfare program.

o The Tax Cuts and Jobs Act capped the credit at income and payroll tax liability. o Wyden-Smith increases the so-called ‘tax credit’ beyond tax liability for families

with multiple children and extends the credit to families for a full year of no work. The Ugly — Anchor Baby Bonuses, a Fake Pay-For, and a Colossal Budget Fight in 2025

• Fails to address the loophole in the CTC allowing illegal immigrants to claim the credit. • Uses gimmicks like astronomical fraud penalties and the early termination of the

Employee Retention Tax Credit’s already paused claims process as a ‘pay-for.’ • Further piles on to the list of individual and business tax provisions set to expire in 2025

(scoring nearly four trillion dollars to make permanent). Further Reading:

• “U.S. Must Pursue Free Trade with Free Nations” (Advancing American Freedom) • “AAF Chairman Marc Short on Doubling of SALT” (Advancing American Freedom) • “Congressional Republicans Roll Back Work Requirements in Compromise Bill” (AEI) • “Low-Income Housing Tax Credit: Costly, Complex, and Corruption-Prone” (Cato) • “Restoring Responsible Government by Cutting Federal Aid to the States” (Cato) • “Illegal Immigrants Get $10.5 Billion from CTC” (Center for Immigration Studies) • “The Federal Tax Treatment of Research & Development Expenses” (Tax Foundation) • “Details and Analysis of Making the 2017 Tax Reforms Permanent” (Tax Foundation) • “How Lawmakers Want to Pay for $78 Billion Tax Bill” (Washington Examiner)

For more information, please contact John Shelton at jshelton@advancingamericanfreedom.com

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