On Tuesday’s broadcast of the Fox Business Network’s “Claman Countdown,” Sen. Ruben Gallego (D-AZ) stated that there needs to be reforms to the Obamacare tax credits at issue in the government shutdown and “there are people that maybe don’t deserve these tax credit — or don’t need this tax credit,” and “We could also make sure we cut people off at certain pay limits and income limits.”
Host Liz Claman asked, [relevant exchange begins around 2:25] “Republicans would be the first to say they hate raising taxes, in fact, they do everything possible not to raise taxes. But that said, when you’re looking at the ACA subsidy extensions, they kicked in in 2021. Actually, there were two points. First, the ACA tax credits were enhanced in 2021, and that was at the height of the COVID pandemic. But with the expansion — and just about everybody, no matter how much you made, [was] either out of work or unable to work — it was basically expanded to people who, in some cases, had salaries of over 400% higher than the poverty rate. Okay, what’s appropriate at one phase of life is inappropriate at another. We are no longer in an emergency situation. Why would we expand it for people, — I’ve been watching one guy who says, I make $2.7 million, why am I getting this extension?”
Gallego answered, “That’s a very good point, and I actually agree with you and I agree with my colleagues that we do actually need to reform the ACA tax credit system, that there are people that maybe don’t deserve these tax credit — or don’t need this tax credit, tightening it up in other areas, I’m all for actually negotiating that. I think they have a very legitimate concern, and I think a lot of my colleagues on the Democratic side understand, again, we’re in divided government, we have no choice but to compromise.”
Later, he stated, “We’re willing to put reforms in. We agree that there needs to be some level of tapering off.”
Gallego further said, “We could taper off. We could also make sure we cut people off at certain pay limits and income limits.”
Follow Ian Hanchett on Twitter @IanHanchett
COMMENTS
Please let us know if you're having issues with commenting.