NTU urges all Senators to vote "NO" on S. Amdt. 891, the FY 2021 reconciliation bill. This legislation, which passed the House on a near party-line basis, is laden with nearly $2 trillion in spending and is bloated with provisions that are not targeted to those most in need and others that will negatively affect the country’s economic recovery from the COVID-19 pandemic. While lawmakers can and should consider relief measures for workers and businesses that are struggling, Congressional leaders’ current reconciliation plans point to a partisan measure full of extraneous provisions.
Notwithstanding NTU’s long-time advocacy for deficit reduction efforts, we recognize there was an urgent need for federal support to struggling families and businesses weathering the COVID-19 crisis over the past year. We have also identified some elements of President Biden’s $1.9-trillion COVID relief proposal that we believe would stand muster with taxpayers, such as funds directed at COVID-19 vaccine distribution and testing.
Unfortunately, much of the Biden plan, reflected in this bill, is poorly targeted. Analysis from the non-partisan Committee for a Responsible Federal Budget found that more than 15 percent of spending is for long-standing policy proposals not directly related to the current crisis. That includes a multiemployer pension plan bailout some lawmakers have been trying to pass for years. The Biden plan proposes to send $350 billion to states and municipalities even though recent data suggest state revenue shortfalls are a fraction of that total.
While one of the most glaring issues with this bill has been removed -- the $15 minimum wage hike -- there are still many provisions that are problematic and not directly related to COVID relief. One such provision would lower the taxation reporting threshold for ridesharing companies from $20,000 to $600, a drastic change that would increase administrative burdens at a time when many individuals are struggling to earn a living.
Lastly, we are concerned that Congressional leaders appear set to pass this spending bill on a near party-line vote. COVID-19 relief has thus far been a bipartisan venture, and we believe that it should continue to be so. House and Senate Republicans have proposed hundreds of amendments. On the heels of a $900-billion relief bill and a significant portion of allocated COVID-19 relief still unspent, a bipartisan and collaborative approach might have ensured this legislation was more targeted and would inflict less of an impact on the national debt.
Roll call votes on S. Amdt. 891 will be significantly weighted in NTU’s annual Rating of Congress and a “NO” vote will be considered the pro-taxpayer position.