On tax bill, Costello says yes

U.S. Rep. Ryan Costello, R-6, believes tax cuts will benefit low and middle income families

In what could be a career-defining vote, U.S. Rep. Ryan Costello, R-6, of West Goshen, on Tuesday and Wednesday joined with the vast majority of his Republican colleagues in voting to support a massive tax rewrite bill that has deeply divided the nation between those who say it will promote growth and investment in the economy and those who label it a gift to the wealthy.

Republicans like Costello, a two-term congressman who represents portions of Chester, Montgomery, Berks and Lebanon counties, insist Americans will learn to love the deeply unpopular bill when they see their paychecks in the new year.

But even as President Donald Trump cheered the lawmakers on, eager to claim his first major legislative victory, opposition Democrats were charging that the legislation would instead lead to higher deficits, eventual cuts to essential social services, and in time lead to tax increases on middle income families.

Costello said he was not attending the White House celebration of the bill’s passage. Instead, he would be working on legislations to stabilize the health insurance market, and the Deferred Action for Childhood Arrivals (DACA) matter.

After midnight Wednesday, the Senate narrowly passed the tax reform legislation on a partyline 51-48 vote. Protesters interrupted with chants of “kill the

bill, don’t kill us” and Vice President Mike Pence repeatedly called for order. Upon passage, Republicans cheered, with Treasury Secretary Steve Mnuchin among them.

Senate Majority Leader Mitch McConnell, R-Ky., insisted Americans would respond positively to the tax bill.

“If we can’t sell this to the American people, we ought to go into another line of work,” he said. The early morning vote came hours after the GOP rammed the bill through the House, 227203. But it wasn’t the final word in Congress because of one last hiccup.

Three provisions in the bill, including its title, violated Senate rules, forcing the Senate to vote to strip them out. So the massive bill was hauled back across the Capitol for the House to vote again on Wednesday, and Republicans have a chance to celebrate again.

“The proof will be in the paychecks,” U.S. Sen. Rob Portman, R-Ohio, said during the Senate’s nighttime debate. “This is real tax relief, and it’s needed.”

Not so, said the top Senate Democrat as the long, late hours led to testy moments.

Democrats called the bill a giveaway to corporations and the wealthy, with no likelihood that business owners will use their gains to hire more workers or raise wages. And they mocked the Republicans’ contention that the bill will make taxes so simple that millions can file their returns “on a postcard” — an idea repeated often by the president.

Costello’s vote, which he was given the opportunity to explain in a series of questions from Digital First Media, is expected to be the focus of the campaign against him in 2018. As Tuesday’s vote cleared the house, Democratic candidate Chrissy Houlahan had issued a denunciation of his decision, calling the bill a “GOP tax scam that will have devastating consequences for taxpayers here in Pennsylvania’s 6th Congressional District.”

Following are the questions that were put to Costello Wednesday and his responses. Some answers have been edited for brevity.

Q

: Why did you support this bill, given the weight it gives to tax cuts to wealthy filers?

A

: The reason I supported the tax relief bill had to do with that individual tax cuts would inure to the benefit of low and middle income families. To be specific, a family of four making the median family income of $73,000 will have their tax bill reduced by $2,000. A single parent with one child would have a $1,300 positive tax benefit from this bill.

My focus has always been on the low and middle income families as it relates to the individual tax rates, but clearly the tax bill will benefit all individuals given the lower income tax brackets and higher income thresholds.

Q

: What do you like most about the bill’s provisions?

A

: I like that it benefits low and middle income families, while reducing the tax burden on small businesses in southeastern Pennsylvania and across the country. Finally, this bill will mean American companies will be competitive in the global economy by reducing the 35 percent corporate tax rate to 21 percent, which is more aligned with the rest of the developed world.

Q

: What do you not like about the bill’s provisions?

A

: I do not support the Arctic National Wildlife Refuge (ANWR) provisions that were included in the bill. While both of Alaska’s U.S. Senators requested this provision, I maintain that there has been a long history of bipartisan conservation and stewardship efforts to protect the refuge, which is why I called on House and Senate leadership to continue these efforts and not include any changes in the tax bill. I was one of twelve Republicans who fought to keep ANWR provisions out of this legislation. I will continue to do everything I can to support these conservation efforts and to prevent this from disrupting our natural wildlife habitat. I found it to be unfortunate that I was forced to choose between tax cuts for hardworking, low and middle income families and ANWR efforts.

Q

: Corporate rate cuts are made permanent, while individual rate cuts are set to expire. Do you support this and why?

A

: I support the tax bill over the status quo, which is why I voted for it, but I would have preferred to see the individual rates made permanent. Arcane Senate reconciliation rules coupled with the fact that Senate Democrats were unwilling to vote to make the individual tax rates permanent was the reason why they were not able to be made permanent. However, again, I would have preferred these individual rates to have been permanent, and believe Congress has every intention of making them permanent.

Q

: Were you concerned at the apparent rush to enact the legislation, with last-minute changes and additions without due hearings?

A

: The framework of the tax bill was released in September and the president announced his tax principles in April, so they have been out there for quite some time. In addition, the House and Senate committees that consider the tax bills operated under regular order – there were a combined 113 committee hearings on the topic. I did my best to keep up with changes and additions myself and to make sure my constituents had the same information.

Q

: USA Today reported: “Supporters said the cost of reducing tax collections by $1.5 trillion over the next 10 years would be offset by an explosion of economic growth, but economists said at best that growth will cover onethird of the cost. Non-partisan estimates project the tax bill could add $1 trillion to the national debt over 10 years. And laws designed to prevent deficit spending could kick in as early as next year, forcing cuts to popular programs, including Medicare.” Do you agree with the Congressional Budget Office’s estimate about the tax cuts increasing the deficit over 10 years?

A

: I do not agree with the CBO’s estimate regarding the deficit projection. CBO has historically underestimated growth and relies on a static growth model with a current law baseline that makes an “all else equal” assumption and fails to account for other dynamic, growth-creating mechanisms in our economy. The Congressional Research Service projects that about one-third of the projected revenue loss will be offset by average economic growth of .07 percent to .08 percent per year. Other models that factor in economic growth project far lower deficit increases. I believe the more favorable regulatory framework I helped create, coupled with these tax cuts, will stimulate the economy, and we will get higher growth – and thus I do not believe the estimated deficit projection.

Q

: Will the tax bill ultimately lead to cuts in Social Security and Medicare? How will you support or oppose those cuts?

A

: I am very confident we will pass legislation that will not allow cuts to these programs, and I will follow through and lead on doing so – I will support what is known as a “pay-go fix” that is included in legislation expected to be considered by the House very soon. In order to pass, the legislation will require support from both parties. This is an important bill because the pay-go fix is necessary to avoid cuts to Social Security and Medicare, so I hope to see both parties support this fix.

Q

: Polls indicate that the tax bill as reported is unpopular with the American public, with Monmouth University showing a 47 percent unfavorable rate compared to a 26 percent approval rate. How do you think that will play itself out in the 2018 election, and how will you respond to Democratic attacks that this was a giveaway for the rich?

A

: I believe polls indicate this because there has been an overwhelming false narrative created by certain media outlets, including even the Daily Local News, with what they’ve been willing to put in there as literally false statements made by protesters. I believe over the course of this year, as people see more money in their paychecks, the continued stock market rally in part as a result of lower tax rates, and more economic activity associated with the tax cuts on the individual and business side that people will see this tax cut benefits their family, their employer, and will lead to a more productive society.

In responding to any attacks, I will simply tell the truth and let the evidence speak for itself, which I believe is low and middle income families benefit from this bill. If any of my opponents would have voted no and maintained the status quo, versus giving low and middle income families and small businesses a tax cut, they will be the ones who have to explain that to the electorate come November.

The Associated Press contributed to this report. To contact staff writer Michael P. Rellahan call 610-696-1544.

U.S. Rep. Ryan Costello, R-6