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The most important bill for lame duck

By Bryan Riley - InsideSources.com | Nov 16, 2024

The most important issue facing Congress during its coming legislative session is whether it will allow Donald Trump to impose trillions of dollars in new taxes without a single congressional vote.

The Constitution gives Congress the power to regulate commerce and levy taxes. However, Congress has created a variety of loopholes that have empowered the president to bypass Congress and unilaterally impose import taxes.

These loopholes allow for import restrictions intended to be targeted in the short term in response to national emergencies or military threats. During Trump’s first term in office, he used these bills unprecedentedly to impose significant tariff hikes. These tariff increases undermined some of the benefits of his signature tax cuts.

In response to Trump’s actions, bipartisan legislation was introduced in the House and Senate to restore the balance of power established in the Constitution by reining in the ability of presidents to impose taxes without securing congressional approval. While Republicans in Congress subsequently criticized President Biden for abusing executive authority, efforts to limit the president’s taxing authority fell by the wayside.

Sen. Rand Paul, R-Ky., addressed that oversight by introducing legislation earlier this year. His No Taxation Without Representation Act would require presidents to get congressional approval before imposing import taxes.

Several groups should embrace this bill during the coming lame-duck session of Congress.

Democrats, who control the Senate, may wish to limit the discretionary authority available to Trump once they are out of power. In the House, Democrats on the Ways and Means Committee have called his proposed tariffs “a flat-out bad deal for the American people.”

While Republican lawmakers may be wary of supporting Paul’s bill after Trump’s win, there are many reasons to do so. During Trump’s first term, the House Republican Study Committee endorsed legislation to restore congressional trade and taxing authority. Today, 81 of the top 100 agricultural-producing congressional districts are represented by Republicans. Many of these representatives have been working to pass a farm bill. The benefits of a new farm bill are negligible compared to the potential cost of a new trade war.

A North Dakota State University study concluded that a new trade war would require massive government spending to mitigate the harm inflicted on farmers. The National Corn Growers Association and the American Soybean Association have pointed out that new tariffs would benefit foreign farmers at the expense of U.S. agricultural producers.

More broadly, Republican lawmakers in the House and the Senate were highly vocal about the need to rein in executive power during the Biden administration, criticizing the number and the scope of executive orders issued by the White House. Limiting unilateral taxing authority for Trump and future administrations should not be a partisan issue.

China hawks in Congress should want a say on broad-based universal tariffs that alienate current and potential U.S. allies and weaken the United States’ ability to counter China.

Congress will soon grapple with provisions of the Tax Cuts and Jobs Act that are scheduled to expire, along with other tax proposals Trump made during his campaign. Potential benefits from these tax cuts could be outweighed by the imposition of new tariffs.

During its coming session, Congress’s priority should be reclaiming its constitutional authority to have a say on potential import-tax increases. Otherwise, it will remain helpless to stop large executive-branch tax hikes that could raise prices, prompt foreign countries to retaliate against U.S. exporters, weaken the economy, and cost Americans trillions of dollars.

Bryan Riley is the director of the Free Trade Initiative at the National Taxpayers Union. He wrote this for InsideSources.com.