Hatch: Tax reconciliation in the budget is 'injecting partisanship'

Sen. Orrin Hatch (R-Utah) criticized Budget Committee Chairwoman Patty Murray (D-Wash.) for considering reconciliation in order to make tax reforms part of the Senate budget plan.

Murray’s committee is expected to consider her budget this week. Some Democrats on the committee have suggested that she include detailed tax instructions in the bill that would expedite tax reform through a process called reconciliation, which precludes a filibuster.

Hatch, the ranking member on the Senate Finance Committee, said that idea would kill the chances of tax reform this year by “injecting partisanship” into what should be a bipartisan debate.

Hatch said he would like to simplify and reform the tax code but that Democrats are misleading people by saying they want to go after “tax loopholes.” Hatch said what Democrats are really calling for is ending some "tax expenditures."

“My Democratic colleagues use the term ‘loophole’ to describe things they don’t like and ‘investment’ for things they do like,” Hatch said. “It’s simply dishonest to call it a loophole.”

Hatch said that tax expenditures that benefit solely the wealthy would not generate enough revenue to truly help reduce the deficit. He said the Democrats’ plan would end up hurting the middle class which also benefits from tax deductions.

“We’re talking about raising taxes on the middle class or not raising enough revenue to make a dent on the deficit,” Hatch said.

He added that he hoped Murray would not pursue tax reforms in her budget and that she should “let the finance committees run their route” or else “we won’t see tax reform this year.”

Murray has justified increasing revenue in addition to cutting spending because Congress has already approved $1.8 trillion in spending cuts since 2010 but only $600 billion in new taxes.

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