River Bend Times

Senator Chuck Grassley delivered opening remarks on June 12, 2024, addressing tax loopholes during a Senate Budget Committee hearing. Grassley expressed initial optimism about the hearing's focus on federal revenues but criticized its political orientation.

"Congress should regularly examine tax incentives, just as we should review spending programs, to ensure they’re working as intended," Grassley stated. He emphasized that closing loopholes or curbing abusive tax avoidance strategies requires bipartisan consensus and understanding of complex issues.

Grassley noted that stock ownership among Americans has increased from 52 percent to 62 percent over the past decade. Reflecting on his tenure with Senator Baucus, he recalled bipartisan efforts to address abusive tax loopholes through hearings that considered both policy and political concerns.

Grassley voiced skepticism about the current majority's approach, suggesting they might "demagogue complex issues and deride Republicans for protecting Wall Street." He pointed out that Democrat opposition has often stalled proposals like carried interest reform. Despite public criticism of carried interest as a loophole for the wealthy, Democrats have not eliminated it when in power. The only legislative action limiting carried interest was part of the 2017 tax law enacted by Republicans.

Grassley also highlighted contradictions in the majority's stance on corporate taxes. While decrying corporate handouts publicly, their Inflation Reduction Act includes significant new or expanded tax incentives for green companies and features like "direct pay" and "transferability," which could reduce corporate taxes further.

He concluded by affirming his support for examining perceived loopholes to improve tax fairness but criticized his colleagues across the aisle for not pursuing meaningful reforms.

"I look forward to hearing from our witnesses," Grassley said in closing.

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