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Tags: mulvaney | tax | funding | government

Rep. Mulvaney: GOP Funding Compromise Is 'Good Defense'

By    |   Wednesday, 01 August 2012 12:46 PM EDT

Rep. Mick Mulvaney tells Newsmax that Republicans agreed to a compromise deal to continue funding the government as a “defensive play” to prevent “something really, really bad from happening.”

The South Carolina Republican also says he favors eliminating all tax deductions to reform a tax code that is “the most bizarre and byzantine system ever.”

Mulvaney was elected in 2010 and is a member of the Budget and Small Business Committees and the Tea Party Caucus. He previously served in the South Carolina Senate and House.

Story continues below video.

House Speaker John Boehner and Senate Majority leader Harry Reid, and President Barack Obama, have reached a compromise on a continuing resolution to fund the government for six months and prevent a possible government shutdown.

In an exclusive interview with Newsmax.TV, Rep. Mulvaney commented on the bill: “I worked hard to push it. In fact, a lot of us conservatives did.

“And a core group within the Republican Study Committee has been pushing this to our leadership for about the past six or eight weeks simply because alternative is a continuing resolution that would expire during the lame duck session, which means that we’d have a government shutdown discussion right before Christmas and Lord only know what that would lead to.

“We think, as conservatives, that this six-month extension is the best way to prevent something really, really bad from happening in a lame duck. It’s the best way to prevent a future tax increase, best way to prevent a full unraveling of the sequester (mandated budget cuts). We thought it was good defense from a conservative standpoint.”

The compromise bill contains no riders, even though some conservatives wanted it to include the defunding of Obamacare.

Mulvaney explained: “I voted to defund Obamacare 33 or 34 different times. If folks don’t know where I sit on that issue right now, they just haven’t been paying attention.

“The truth of the matter is none of those riders, and we’ve passed them several times before in this Congress, none of those ever make it past the Senate. And the Senate would have used that as an excuse for blaming us for a government shutdown the week before the election.

“So what we did here is do the best that we can to prevent an absolute catastrophe during the lame duck session when too many Republicans would be willing to consider things that are ordinarily off the table just so they could go home for Christmas. Again, this was the best defensive play that we could have made.”

Mulvaney said small businesses are going to get “crushed” if the Bush-era tax cuts are allowed to expire for the wealthiest Americans and the payroll tax cut is eliminated.

“I’m hoping more and more Democrats start to see that there’s going to be a lot of folks hurt by these tax increases,” he told Newsmax.

“We’ve got a very good chance of dealing with it after the election. I don’t think there’s any likelihood of getting any type of agreement before the election. That’s the way, maybe, things should be, that the big issues around here get solved during an election.

“Obviously, as a conservative, I’m hoping for a favorable outcome in the election to build our hand, to not only extend the tax rates – that’s a short term goal, the long-term goal is fixing the tax system. And the only shot we’ve got to do that is to win the election this November.”

Many Republicans say the better way to raise revenues is to lower tax rates, and then reduce deductions, tax credits, and loopholes. Mulvaney was asked what specific tax deductions or credits he would be in favor of cutting.
“All of them,” he responded.

“Once you get up here and start to look at what the tax code really is, the tax code is nothing more than government goodies handed out to its friends. We don’t tax income in this nation. We tax behavior and subsidize other behavior, and that’s entirely what the tax code has become.

“I would love to see the simplest, fairest tax that you can possibly have, which is, simply said, we’ll tax you on your income. All deductions are gone, all credits are gone, subsidies are gone. We’re going to pay the lowest possible rate that we can in order to fund the government, but we’re going to get out of the business of giving goodies to folks who happen to be politically powerful from one time to another.

“It is the most bizarre and byzantine system I’ve ever seen. Sometimes we succeed as a country not because of our government, but in spite of it. And until we fundamentally change the tax code, we’ll continue to suffer under its burdens.”

Mulvaney was also asked if he would favor cutting even the child tax credit and mortgage interest tax credits.

He said: “If you got to a circumstance where you could get the lowest possible rate and the simplest system, I’d be willing to look at every and any tax deduction, tax credit, or tax subsidy.”

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Wednesday, 01 August 2012 12:46 PM
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