(C) Iowa Capital Dispatch
This story was originally published by Iowa Capital Dispatch and is unaltered.
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Congressional Republicans save biofuel credits; put U.S. economy at risk [1]
['More From Author', 'April', 'Ed Tibbetts']
Date: 2023-04-27
As expected, Iowa’s congressional delegation voted for House Speaker Kevin McCarthy’s debt ceiling bill Wednesday, and it barely survived, 217-215.
The House plan, if it ever were to be enacted, would do little to improve our government’s fiscal health. The federal debt would still rise to 106% of Gross Domestic Product over the next decade under the GOP plan. Which is little different than the 110% President Biden proposes.
Twenty years ago, debt-to-GDP was about 35%.
President Biden and Senate Democrats adamantly oppose the bill, so now the standoff really begins.
Meanwhile, Iowa’s delegation was winning high praise in some quarters Wednesday for holding out until McCarthy caved during the wee hours and amended the House bill to reverse cuts to certain biofuel tax credits. Otherwise, they reportedly weren’t going to vote for the plan.
Given McCarthy’s slim majority, this was entirely predictable. He didn’t have any choice but to give in.
Nonetheless, the Iowa four were playing it to the hilt Wednesday, calling it a major victory. They even claimed that “the biofuels industry drives the Iowa economy.”
This might surprise even the industry’s boldest supporters. Earlier this year, the Iowa Renewable Fuels Association issued a report claiming the industry contributed $7.2 billion to the state’s GDP in 2022.
Critics say the ethanol lobby typically overstates its economic impact in Iowa. But even if taken at face value, that’s still just 3% of Iowa’s $230 billion GDP.
That’s some driver.
But while Reps. Ashley Hinson, Mariannette Miller-Meeks, Zach Nunn and Randy Feenstra were reaping praise from fellow Republicans Chuck Grassley and Kim Reynolds for standing up for tax credits important to the biofuels industry and farmers, they didn’t stand up for the thousands of Iowans at risk of losing Medicaid coverage if the Republican plan goes through.
Nor did they stand up for the millions of poor children and those with disabilities who are educated in schools that would see funding cuts nationwide.
They didn’t even stand up for the “thousands of farm families” in Iowa and other states that the USDA predicts will lose “access to the credit and help they need to continue to farm” if the GOP’s plan goes through. (Since Republicans will likely exempt the Defense Department from these cuts, the White House said they will fall especially hard on domestic programs.)
Most importantly, the Iowa four voted to bring us closer to a disastrous default on our national debt.
That’s the biggest risk Iowans face, not the loss of biofuel credits.
Already, the markets are getting shaky as this fight over the debt ceiling drags out.
Axios reported Wednesday that bond traders were showing “extraordinary nervousness.” And even the Iowa four acknowledge that what’s at stake here is a “catastrophic default,” although they blame Biden instead of themselves.
Republicans and Democrats need to seriously work together to get our debt under control. And there are balanced alternatives that don’t involve taking us to the economic brink.
Republicans didn’t demand President Trump cut spending before raising the debt limit when he was in the White House.
But now they’re sticking it to Biden.
Now, they suddenly care about our nation’s fiscal health. At least they do until the next deficit-raising tax cut plan comes along.
It’s wrong to hold the country’s economy hostage to win political battles. Even fiscal hawks have acknowledged this.
But, hey, the Iowa four stood up for biofuels this week. That will be good for some positive Iowa press and future campaign donations.
The problem is, they’re putting all Iowans at tremendous economic risk in the process.
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[1] Url:
https://iowacapitaldispatch.com/2023/04/27/congressional-republicans-save-biofuel-credits-put-u-s-economy-at-risk/
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