River Bend Times

In a recent development, U.S. Senator Jeff Merkley (D-OR), the Ranking Member of the Senate Budget Committee, criticized the Wall Street Journal Editorial Board for supporting a Republican budget proposal that he claims obscures tax benefits for wealthy individuals. The editorial board's endorsement of using a current policy baseline in this context has been labeled by Merkley as "magic math," which he argues conceals the true cost of these tax breaks.

"Congressional Republicans need to realize tax giveaways cost money. Refusing to measure something doesn’t mean it goes away," wrote Merkley in his letter to the editor.

Senator Mike Crapo and Representative Jason Smith have proposed employing a current policy baseline rather than the Congressional Budget Office’s standard current law baseline for an upcoming Republican reconciliation bill. This approach is seen by some as an attempt to make a $4.5 trillion extension of Trump-era tax cuts appear financially neutral. Critics argue this strategy aims to expedite legislative approval while masking its impact on the national deficit.

Merkley pointed out that budget experts from both political parties have criticized this tactic. George Callas, former senior tax counsel to House Speaker Paul Ryan, warned that making certain tax provisions permanent without offsets would require borrowing an additional $4.5 trillion over ten years. Marc Goldwein from the Committee for a Responsible Federal Budget described it as potentially "the biggest and maybe most economically costly gimmick in American history." Former Republican Majority Leader Eric Cantor also acknowledged that such measures cannot be concealed as trivial issues.

Senator Merkley's response emphasizes the financial implications of ignoring traditional budgeting standards and highlights bipartisan concern over these proposed fiscal policies.