How Sen. Marco Rubio Won a Concession on the GOP Tax Bill
16 December 2017 - 1:14PM
Dow Jones News
By Siobhan Hughes
WASHINGTON -- For two weeks, Republican Sen. Marco Rubio of
Florida fumed that his party rejected his efforts to steer more
money to low-income families in the GOP tax plan by making a child
tax credit more accessible.
Mr. Rubio got something for his anger. On Friday, Republican
tax-bill negotiators agreed to make more of the child tax credit
refundable, or available to taxpayers even if they pay no income
tax. Under their deal, such filers would be able to get $1,400 of
the $2,000-per-child-credit, up from $1,100 agreed to
previously.
"There is still much more to do in the months and years to
come," Mr. Rubio, the son of a bartender, said on Twitter. He
nonetheless called the agreement a "solid step toward broader
reforms" and planned to vote for the tax bill.
The agreement actually saved negotiations about $6.2 billion,
because it was paid for by reversing a decision to allow the child
tax credit for 17-year-olds. Still, the gamesmanship around the
credit provided a window into last-minute dealing as Republicans
tried to win needed votes.
In the middle was Sen. Tim Scott of South Carolina, one of eight
Republican senators appointed to the tax-bill conference committee
assigned to iron out differences between the House and Senate
bills. Mr. Scott is one of Mr. Rubio's best friends in the
Senate.
Throughout the week, Mr. Scott could be seen engaged in shuttle
diplomacy, one of the only visible links between Mr. Rubio and the
Republican conferees who gathered behind closed doors to hammer out
the tax deal.
"No one raised a hand of support for the Rubio position besides
myself," Mr. Scott said in describing the meetings with tax
negotiators.
"Trickle-down economics works," Mr. Scott said, agreeing that
policies that help corporations also create an environment that
encourages wage growth and job creation. "The challenge is it takes
too long," he said in explaining that a child tax credit that was
more available to lower-income people would have more immediate
effects.
On Wednesday afternoon, Mr. Rubio and Mr. Scott left a meeting
with Senate Majority Leader Mitch McConnell. Mr. Rubio had just
finished telling Mr. McConnell that he would vote no on the GOP tax
bill.
Republican negotiators had made room for a lower top individual
tax rate and a faster cut in the corporate-tax rate, but initially
gave no ground to Mr. Rubio. Activists and outside groups began to
wonder why the onetime GOP presidential contender didn't get his
demands met while lower-profile lawmakers, like Sen. Ron Johnson
(R., Wis.), did earlier in the month On Dec. 2, Mr. Johnson won a
compromise that directed an additional $114 billion for
partnerships, sole proprietorships, and other "pass-through"
businesses by threatening to vote against the tax bill.
"Tax negotiators didn't have much trouble finding a way to lower
the top tax bracket and to start the corporate tax cut a year
early," Mr. Rubio complained on Twitter. If they could do that, he
argued, they ought to be able to find a way to expand the child tax
credit.
Mr. Rubio was under intense pressure himself.
Mr. Rubio, along with Sen. Mike Lee (R., Utah), advanced an
amendment to win better terms for the child credit but was soundly
defeated. The lesson: His best leverage was a threat to vote no, as
Mr. Johnson did.
Mr. Lee shifted his position to undecided, giving Mr. Rubio more
leverage. Mr. McConnell called House Speaker Paul Ryan (R., Wis.)
to say that unless the refundable portion of the child tax credit
increased to $1400 from $1100, he didn't have the votes to pass the
bill, according to a Republican familiar with the conversation.
Spokespeople for Messrs. McConnell and Ryan declined to
comment.
Later Friday, another wavering Republican senator, Bob Corker of
Tennessee, said he would vote for the bill too. He had been
concerned the new tax bill would add to deficits. He didn't say why
he changed his view and decided to vote for the bill, but with his
support, passage now looks close to certain.
--Siobhan Hughes
(END) Dow Jones Newswires
December 15, 2017 20:59 ET (01:59 GMT)
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