NTU Lame Duck LetterNov 20, 2024
Dear Majority Leader Schumer, Speaker Johnson, Republican Leader McConnell, and Minority Leader Jeffries:
As the nation welcomes the newly elected President Trump and new members of Congress plan moves to DC, National Taxpayers Union is reminding the current Congress not to forget about taxpayers during the lame duck period.
Do’s During Lame Duck
Do: Adhere to the Bipartisan Fiscal Responsibility Caps
With the current unrest in the Middle East and with two hurricanes leaving devastation throughout the South, there will be pressure to drastically increase spending, emergency and otherwise. Some members of the Senate are advocating for major increases in Pentagon spending, potentially by categorizing it as emergency spending. This is a poor practice for taxpayers and could imperil future appropriations for true emergencies. As a recent example, experts believe that Hurricanes Milton and Helene could both cross $50 billion in recovery costs. Conflating billions in Pentagon research and development budget requests with actual hurricane recovery costs only damages congressional perception of the true use of “emergency” spending. Moreover, with inflation at close to 20 percent over the last four years, and with federal deficits averaging around two trillion dollars over the same period, the bipartisan Fiscal Responsibility Act caps should be a redline that must not be crossed. Offsets for the nearly $100 billion emergency aid package proposed by President Biden should be implemented to avoid further spending spiraling. This would send a strong message to the incoming administration that Congress is serious about the federal spending crisis and would ensure that fiscal security remains a national priority.
Do: Pass a Debt Ceiling Increase with Spending Cuts
Last year, Congress faced tremendous problems when attempting to raise the national capacity to borrow—or the debt ceiling—which resulted in the Fiscal Responsibility Act. Congress should build upon the fiscal restraint inherent in that legislation by further cutting spending and avoiding jeopardizing the credit of the United States by authorizing a debt ceiling increase. During a time of inflationary pressures, uncertainty around the United States’ creditworthiness could cause borrowing costs to spike even further—worsening Americans’ financial situations.
Do: Pass Pro-Taxpayer Legislation
There are also worthy legislative items languishing that could be passed with bipartisan support. Congress should look to pass a pharmacy benefits transparency bill that doesn’t saddle the private sector with overly burdensome mandates like the Medicare PBM Accountability Act. It could also provide welcome holiday cheer for families with children in college by passing Chairwoman Foxx’s College Costs Reduction Act. And for the millions of cryptocurrency holders, passing the Financial Innovation and Technology in the 21st Century Act would provide much needed regulatory clarity. Another great bill is the No Taxation without Representation Act by Senator Paul (R-KY), which would prevent tariffs from being raised without congressional approval. For even more legislative items that would be a slam dunk for taxpayers, look no further than NTU’s 14th Annual No-Brainers list.
Don’ts During Lame Duck
Don’t: Jam Congress with a Christmas Omnibus
Although NTU applauds the House Appropriations Committee for its work in introducing and passing the majority of appropriations bills, unfortunately the rest stalled on the floor. As a result, taxpayers are facing another Christmas omnibus before everyone goes home for the holidays. Congress should adhere to Speaker Johnson’s pledge to not pass a Christmas omnibus, as this practice would reduce the ability of individual members of Congress to analyze the fiscal and policy impacts through the pressure of artificial deadlines and desire to return home for the holidays. By providing ample time to analyze the critical spending legislation and by breaking it up, lawmakers will be better able to act in the best interest of taxpayers.
Don’t: Use Budgetary Gimmicks in Funding Bills
Congress uses “sleight of hand” in many different methods to disguise the true cost of legislation to taxpayers. From delaying implementation of rules, to using timing tricks, these paper “savings” only appear to offset spending. The budgetary tricks game the Congressional Budget Office’s scoring methodology, which depends largely on using an artificial ten-year budget window, with policy changes being scored as revenue increases, decreases, or having minimal impact. Many of these tricks are, in effect, permanent policies that are extended on paper to derive the “savings.” Obscuring the true cost of legislation further damages taxpayers’ trust in government and paves the way for further deficit spending that will increase the national debt.
Don’t: Rush Artificial Intelligence Legislation
While NTU has put forth a number of principles for judicious artificial intelligence regulation, it’s clear that Congress should continue to allow the technology to evolve before attempting major federal legislation. Legislation intended to protect users may instead stunt the growth of the technology, which would result in other countries taking the lead in a pivotal new era.
We look forward to working with you in this critical time that will set the stage for the next administration and Congress.
Sincerely,
Pete Sepp
President