Rep. Chris Roy: Senate tax bill 'needs to improve' before it comes back to the House

Summary of Congressman Chip Roy's Interview on CNBC

Key Concepts:

• Debt and Deficits
• Green New Deal Subsidies
• SNAP Benefits (Food Stamps)
• Medicaid Reform
• Work Requirements
• State and Local Tax (SALT) Caps
• Remittances Tax
• Economic Growth

1. Overview of Congressman Roy's Position:

Congressman Chip Roy expresses concerns regarding the Senate's version of a bill intended to prevent tax increases and achieve Republican objectives. While acknowledging the President's desire to pass the bill, Roy argues that the Senate version is significantly worse than the House version, primarily due to increased deficits and weakened provisions on key issues.

2. Deficit Concerns:

• House Bill: The House bill was projected to increase deficits by approximately $72 billion over a decade, assuming 2.6% economic growth. Roy voted for it "somewhat reluctantly" because he believed it was roughly break-even.
• Senate Bill: The Senate bill is projected to add up to $1 trillion in additional deficits. Roy emphasizes that the exact text is not yet available, but this is based on information from committees.
• Argument: Roy argues that perpetuating additional debt and deficits is unacceptable and that the Senate bill moves in the wrong direction. He believes that controlling spending is crucial for combating inflation and lowering interest rates.

3. Green New Deal:

• House Bill: The House bill aimed to terminate the "Green New Scam" (subsidies for inefficient energy sources).
• Senate Bill: The Senate is "watering down" the provisions related to Green New Deal subsidies.
• Argument: Roy believes that the U.S. should not subsidize inefficient energy, especially when it enriches China. He emphasizes that the President was clear about terminating these subsidies.

4. SNAP Benefits (Food Stamps):

• House Bill: The House bill included reforms to SNAP benefits that Roy supported.
• Senate Bill: The Senate bill does not do as much on SNAP benefits as the House bill.
• Argument: Roy believes there are problems with the current welfare system and that reforms are needed to ensure that benefits are targeted to those who truly need them.

5. Remittances Tax:

• House Bill: The House bill included a provision to tax remittances (money sent by people here illegally to their home countries), generating $24 billion.
• Senate Bill: The Senate bill removes the remittances tax.
• Argument: Roy views the removal of the remittances tax as a negative change.

6. Medicaid Reform:

• Both Bills: Roy acknowledges that the Senate bill improves Medicaid by approximately $150 to $175 billion. He credits Senator Rick Scott for fighting for these improvements.
• Argument: While praising the Medicaid improvements, Roy argues that they are "not good enough" and that further reforms are needed to end "money laundering scams" and ensure that the vulnerable receive appropriate support. He believes that able-bodied individuals are receiving seven times more money than the vulnerable.

7. Work Requirements:

• House Bill: The House bill included work requirements for benefits, reflecting the belief that able-bodied individuals should work.
• Argument: Roy defends the work requirements as a return to the "common sense" welfare reform of the 1990s. He argues that the American people overwhelmingly support work requirements for benefits.

8. State and Local Tax (SALT) Caps:

• House Bill: The House bill included a provision that would reward "blue state high tax jurisdictions" with a "big pop" to the state and local tax caps.
• Senate Bill: The Senate wants to move in the right direction, but they're already talking about negotiating that back to where the House was.
• Argument: Roy opposes subsidizing "a socialist mayor in New York" and believes that the SALT cap provision in the House bill would cost an additional $350 billion.

9. Addressing Criticisms:

• Cutting Benefits: Roy anticipates criticisms that the bill cuts benefits for the needy.
• Response: He argues that the bill focuses on reforms and work requirements, not overall cuts. He points out that Medicaid spending will increase by 30% over the next ten years under the bill. He emphasizes that the goal is to redirect benefits to those who most need them and to ensure that only eligible individuals (e.g., American citizens) receive them. He states that a "reduction in increases is a cut" only in Washington.

10. Conclusion:

Congressman Roy believes the Senate bill needs significant improvements before it can be supported by the House. His primary concerns are the increased deficits, weakened provisions on Green New Deal subsidies and SNAP benefits, and the need for stronger reforms to ensure fiscal responsibility and target benefits to the truly needy. He emphasizes the importance of delivering on the promises made to the American people regarding deficit reduction and economic growth.