House Speaker Mike Johnson seeks to retain parts of the Inflation Reduction Act but faces a divided Republican Party.
At a Glance
- House Speaker Mike Johnson plans to preserve some clean energy tax credits from President Joe Biden’s Inflation Reduction Act (IRA) but aims to eliminate others.
- Johnson acknowledges it would be impossible to completely dismantle the IRA, describing the need for a selective approach.
- Over a dozen Republican lawmakers, facing re-election challenges, have requested Johnson to preserve certain tax credits and deductions from the IRA.
- GOP lawmakers are preparing for a debate over extending parts of the 2017 Tax Cuts and Jobs Act, which will expire at the end of next year.
House Speaker’s Balancing Act
House Speaker Mike Johnson supports retaining certain green energy subsidies under President Biden’s Inflation Reduction Act (IRA), a stance that illustrates ongoing internal divisions in the Republican Party. Johnson’s approach involves preserving select clean energy tax credits while calling for the elimination of others. He acknowledges that completely dismantling the IRA is impractical, advocating for a judicious strategy that retains valuable aspects.
Johnson’s stance has garnered significant attention as over a dozen Republican lawmakers, particularly those facing tough re-election races, have urged the Speaker to maintain specific tax credits and deductions from the IRA. These legislators argue that repealing essential energy tax credits could jeopardize ongoing private investments and developments, highlighting economic benefits realized in their districts.
GOP House Speaker Johnson backs keeping some of Biden's clean energy tax credits https://t.co/aiMDCATXtL
— CNBC (@CNBC) September 17, 2024
Broader Republican Debate
The Republican Party remains divided on the fate of the IRA, with a growing faction supporting the retention of clean energy credits. Notably, industry groups like the Chamber of Commerce and the American Petroleum Institute back Johnson’s selective retention approach. Meanwhile, some conservative members, such as Rep. Chip Roy of Texas, staunchly oppose any part of the IRA, labeling it as detrimental to the economy and national competitiveness.
“Driving up the cost for Americans, making us fall beyond China — there is zero reason why we should even be entertaining this,” Roy said. “We should repeal the whole thing.”
Lawmakers are also gearing up for debates on extending sections of the 2017 Tax Cuts and Jobs Act set to expire next year. Johnson, along with other Republicans, supports extending and expanding these Trump-era tax cuts. However, there are deliberations on rolling back IRA tax credits to balance the cost of extending 2017 tax reforms, revealing the intricate complexities within GOP tax policy discussions.
Political and Economic Considerations
Johnson’s compromise seeks to navigate the fine line between economic prudence and supporting green initiatives. His critics argue that reducing or eliminating these credits will bring about adverse economic impacts. Lena Moffitt, Executive Director of Evergreen Action, criticized Johnson’s approach, emphasizing potential job losses and reduced investments.
“Speaker Mike Johnson’s pledge to gut popular investments in our clean energy future if Republicans take control of Congress shows that he’s willing to throw even members of his own caucus under the bus to do Donald Trump’s bidding. A growing chorus in Johnson’s own party have been sounding the alarm that gutting the IRA would be politically unpopular, stripping away thousands of jobs and billions of dollars in investments that are already transforming their districts.
And yet, Speaker Johnson is hell-bent on dragging us back to Trump’s disastrous energy policies that will cost Americans nearly 2 million jobs and more than $30 billion in energy costs while putting countless lives at risk from the worsening impacts of climate change. This isn’t leadership—it’s a dangerous betrayal of the American people to serve the narrow interests of Big Oil and Donald Trump.”, stated Evergreen Action Executive Director Lena Moffitt
Given these challenges, the Republican strategy regarding the IRA could significantly influence upcoming tax negotiations and U.S. climate policy. Johnson’s approach, though controversial, exemplifies a pragmatic take on a complex issue, striving to strike a balance that would serve the nation’s broader interests.