Economist Backs GOP Spending Bill Concerns
Economist Steve Moore expressed support for the “Budget Hawks” regarding a GOP spending bill during a discussion on Fox Business. He resonated with concerns raised by Texas Republican Rep. Chip Roy about potential issues with the legislation.
On Sunday night, House Republicans advanced President Donald Trump’s “one big, beautiful bill,” succeeding in moving tax and spending packages through a committee, following the agreement from four conservative representatives who voted “now.” During his appearance on “Kudlow,” Moore reflected on the several conservatives who collaborated with Democrats to impede Trump’s financial proposals, indicating that the bill has notable deficiencies requiring immediate attention.
“When I heard Chip Roy’s perspective, I felt a bit frustrated. With a myriad of budgetary concerns, I share the same sentiment you do about this bill. I reviewed what Chip Roy and others were highlighting. Honestly, I told Larry Kudlow, ‘These folks are spot on. There’s a problem with this bill that needs addressing, and it’s not a complicated fix,’” Moore commented.
One significant aspect he pointed out was the delayed implementation of work requirements for welfare recipients, noting the success of such requirements in the 1990s. Moore questioned the rationale behind waiting four, five, or even six years before enforcing job requirements, recalling how effective they were back when Newt Gingrich was in charge and Bill Clinton was president, which led to a 60% reduction in welfare cases.
He also took issue with how Medicaid funding is currently handled, suggesting this distorted state incentives. “Why are we covering 90% of the Medicaid expenses for states? This is how places like Illinois and California manage to balance their budgets by enrolling more individuals in Medicaid,” he explained.
Despite existing concerns, Moore remains optimistic about the Republican Party’s direction. “I believe we are moving toward a resolution that satisfies both the Budget Hawks and the GOP leadership. This could lead to a more improved bill, potentially including a 15% corporate tax rate,” he added.
Senator John Kennedy from Louisiana agreed that Roy brought up important points on spending but urged conservatives to remain focused on the party’s core objectives. He cautioned that failing to extend Trump’s tax cuts by the January 1 deadline could result in a substantial tax increase, putting economic competitiveness at risk.
House Republicans proposed to expedite work requirements until December 31, 2026, and terminate the IRA Green Energy Subsidy by 2028. Representative Ralph Norman from South Carolina praised the bill as a significant improvement but noted that the Finance Hawks are advocating for more profound Medicaid reforms, especially concerning the federal government’s contributions to Medicaid programs.
The proposed package amalgamates legislation from 11 House Committees, each setting ambitious savings and spending targets amounting to $1.5 trillion over the next decade. Budget Speaker Joday Allrington asserted that this legislation would usher in the most savings since 1974, but Finance Hawks argue that the proposed timeline could postpone necessary reforms until potentially the end of Trump’s second term in 2029.
