Four years ago, as Republicans went ahead with a $1.5 trillion tax cut, Democrats assailed them for hiding the true cost of the legislation, arguing it was “loaded with budget gimmicks” and packed with “stealthy tax tricks.'
Sen. Joe Manchin speaks during a television interview at the Russell Senate Office Building in Washington on Thursday, Nov. 4, 2021.
But budget experts, along with some moderate Democrats, say the true cost of the legislation will be closer to $4 trillion because of the way the programs are structured and accounted for in the budgetary process. For instance, many of the provisions in Biden’s framework would expire, or “sunset” after only few years, even though Democrats anticipate that they would eventually be extended.
“It’s similar but it’s much more egregious,” said Marc Goldwein, senior policy director for the Committee for a Responsible Federal Budget, comparing the situation to 2017. “They’re cutting the bill in half, more than in half, by having things expire early.” Some Democrats have also looked skeptically on that proposal. Sen. Robert Menendez, D-N.J., who has been pushing for permanent relief from the cap on the state and local tax deduction, known as SALT, said this week that it should be targeted to benefit the middle class but not reinstated. Such “gimmicks,” he warned, would mostly benefit the rich.
Other analysts, such as those at the Congressional Budget Office, projected it would raise far less — about $200 billion over a decade. The discrepancy boils down to a difference of opinion about the value of the “deterrent effects” of having more tax agents conducting audits.
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