Green New Deal

Wyden Comments on Green New Deal, China Trade and Tax Breaks

In an expansive interview with the  Portland Business Journal , Oregon Senator Ron Wyden defended the Green New Deal, questioned the effectiveness of tariffs to influence China trade policy and urged the IRS to waive penalties for federal income taxpayers who failed to withhold enough for their 2018 taxes.

In an expansive interview with the Portland Business Journal, Oregon Senator Ron Wyden defended the Green New Deal, questioned the effectiveness of tariffs to influence China trade policy and urged the IRS to waive penalties for federal income taxpayers who failed to withhold enough for their 2018 taxes.

Oregon Senator Ron Wyden defended the Green New Deal, questioned tariffs on China trade and touted legislation to unmask shell company ownership in an expansive interview with the Portland Business Journal published this week.

Oregon’s senior senator also urged the Trump administration to waive IRS penalties on taxpayers who failed to withhold enough money to cover their 2018 income tax and called for a review to determine if opportunity zones are being used as intended to encourage investment in impoverished areas.

Wyden called criticism of the Green New Deal “nonsense.” “It is a resolution. It is aspirational, not a legislative text,” he said. Wyden, who is the ranking Democrat on the Senate Finance Committee, said he is looking at “throwing more than 40 separate tax breaks for energy…, which are basically dirty energy relics that cost billions of dollars a year, into the trashcan and substituting three new ones: one for clear energy, one for clean transportation and one for energy efficiency.”

On trade with China, Wyden said there is agreement “tariffs should be part of the trade toolbox, but we don’t share the view that every time there’s an issue, you drop another tariff. It has not worked particularly well with China.” He said strong measures are necessary to stop China from “ripping off our technology.”

Wyden said bipartisan support is growing for legislation he and Florida GOP Senator Marco Rubio have introduced to require shell companies to disclose their beneficial owners. Failing to require ownership disclosure, he explained, would mean “you’re playing catch-up ball.”

Taxpayers who face penalties for their 2018 federal income taxes deserve a break, Wyden said, because the IRS didn’t properly update its withholding tables and forced taxpayers to deal with “complicated online calculator, which had its own problems.” He added that multinational corporations “are not sweating it today [because] they’ve got their tax breaks locked in.”

Wyden agreed a review is needed to see if opportunity zone tax incentives are being mis-applied. PBJ reporter Matthew Kish noted Oregon has used an expansive definition for opportunity zones, which include Portland’s downtown area, prompting Bloomberg  Businessweek to call it “Tax Breaklandia

Wyden said the goal of his Craft Beverage Modernization and Tax Reform Act is to “promote innovation and focus on small guys.” He also touted his ELEVATE Act that aims to “connect the dots” between training dislocated workers for thousands of available jobs.

In upcoming days, Wyden said the Senate Finance Committee will invite seven CEOs from major pharmaceutical companies at a hearing to “get an agreement to stop some price-gouging.” “What I want to know is whether they're going to get beyond the blame game. Everything they always do with respect to pharmaceutical prices and health care costs generally is blaming the other guy,” he said.

 

Green New Deal is More of a Signal Than a Statute

The optics were unmistakable. A 29-year-old freshman member of Congress was a leading voice at the introduction of the Green New Deal resolution, which has little chance of passage, but presages an important political moment when the fears and wishes of a younger generation push up against the pessimism and patronization of an older generation in politics.

The optics were unmistakable. A 29-year-old freshman member of Congress was a leading voice at the introduction of the Green New Deal resolution, which has little chance of passage, but presages an important political moment when the fears and wishes of a younger generation push up against the pessimism and patronization of an older generation in politics.

The Green New Deal resolution just introduced in Congress is less a plan of action and more a barometer of a new political wind.

The incoming Democratic majority in the House radiates the energy and activism of younger voters who will face the perils of climate change and are demanding bold action now. The Green New Deal is the Democratic response.

The incoming Democratic majority in the House radiates the energy and activism of younger voters who will face the perils of climate change and are demanding bold action now.

Because the Senate remains in Republican control and the White House is occupied by someone who denies the science of climate change, Democrats can only point to policies that wean America off fossil fuels and accelerate a renewable energy future. It will be up to states such as Oregon, where Democrats are in solid control, to advance specific climate change legislation, whether in the form of a carbon tax or cap-and-trade regime.

The optics of the Green New Deal nonbinding resolution’s introduction were unmistakable. Long-time environmental crusader Ed Markey, D-Mass, shared the platform with freshman phenom Alexandria Ocasio-Cortez. Markey said, “Our energy future will not be found in the dark of a mine, but in the light of the sun.” Ocasio-Cortez added, “All great American programs, everything from The Great Society to the New Deal, started with a vision for our future.”

Critics called the plan unrealistic, lacking in specifics and too costly. They said advocates of the Green New Deal need to do a “whole lot more homework.” To youthful supporters, the criticism sounds a lot like patronizing parental pessimism.

Ocasio-Cortez shot back: “For 40 years we have tried to let the private sector take care of this. They said, 'We got this, we can do this, the forces of the market are going to force us to innovate.' Except for the fact that there’s a little thing in economics called externalities. And what that means is that a corporation can dump pollution in the river and they don’t have to pay, but taxpayers have to pay."

To be sure, there would be huge technical and significant economic challenges to reach a zero-carbon target in 10 years. For example, cars are a major source of greenhouse gas emissions, but many people hold onto their cars as long as 10 years. One of the biggest sources of methane emissions are cows.

"Even the solutions that we have considered big and bold are nowhere near the scale of the actual problem that climate change presents to us," Ocasio-Cortez told NPR's Steve Inskeep.

Youthful supporters are undaunted by those challenges. Sunrise Movement held a web meeting with supporters from all over the country and pledged to amp up lobbying for the Green New Deal during February. One of the group’s leaders said sit-ins may occur in the offices of Members of Congress who don’t endorse the Green New Deal.

But “old-timers” chimed in, too. “The Green New Deal resolution is essential in building and sustaining momentum to deal with the climate crisis,” Oregon Congressman Earl Blumenauer wrote his constituents. “Its message is one of ambitious, achievable and necessary hope. That’s why I’m excited to partner with Congresswoman Alexandria Ocasio-Cortez to help write this resolution and define its goals for this Congress.”

Congressional insiders recognize the Green New Deal won’t move in any significant way in this Congress. What they miss is that Ocasio-Cortez is a Member of Congress with a voting card and someone with an outsized following on Twitter who is driving the progressive political agenda. The only US political figure with more Twitter interactions if President Trump.

“When a 29-year-old former bartender of Puerto Rican descent beats a senior Democratic leader of the House, and then proceeds to set the political agenda during her first week in office, it’s more than a cute social media story," wrote Antonio Garcia Martinez in Wired. “She’s a harbinger of a new American political reality.”

This is what separates the Green New Deal from other legislative initiatives. It has become a generational anthem, not just a piece of legislation.