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San Antonio Express-News: S.A. congressman becomes leading Democratic critic of tax bills

November 26, 2017

WASHINGTON - On MSNBC this week, Lloyd Doggett sounded a tone of resignation while trying to puncture the seeming inevitability of Republicans' legislation to overhaul the American tax system.


"I view the bill as a giant political life preserver for Republicans who've been unable to get anything else done this year and haven't given a lot of thought to the real impact on Americans of adding so much debt, a trillion so dollars," Doggett said.

As his party's ranking member on the House Ways and Means tax-writing panel, Doggett, D-San Antonio, is cast in the role as a main Washington critic of the GOP tax plan, which is moving swiftly. and perhaps inexorably, to final passage. The House advanced its version on Nov. 16.

After the Thanksgiving break, the Senate will take up its own draft of a significantly changed tax system, which differs in some ways but, like the House version, aims to cut taxes by more than $1 trillion over a decade and simplify the tax code. Doggett and the Democrats argue that both versions overwhelmingly favor the wealthy.

Intrigue remains, with the potential of several Republican senators to block the legislation. It could be deficit hawks worried about red ink, perhaps Bob Corker of Tennessee and Jeff Flake of Arizona, neither of whom are seeking re-election.

Maine's Susan Collins could be another obstacle for the GOP given her dislike of the Senate's surprising add-on repeal of a key Affordable Care Act provision. There's unpredictable Arizona Sen. John McCain and others who may demand changes, among them Rand Paul of Kentucky, Ron Johnson of Wisconsin and Lisa Murkowski of Alaska.

When the action begins, Doggett, a 12-term veteran and tax policy enthusiast, will be on hand to counsel colleagues from the other side of the Capitol privately while publicly pressing his case.


"It's close enough that the odds are against us but that we can still make a difference," Doggett said in an interview.With time running out - President Donald Trump this week promised people "a huge tax cut" for Christmas - Doggett is realistic. He sees GOP chances at winning the historic tax overhaul at slightly better than 50-50.

Beyond the appeal of lower taxes and easier filing in the House and Senate bills, Doggett and critics are contending with diminished media attention because of the focus on sexual harassment, the Alabama special Senate election and an ongoing glut news.

What's more, the simplification bill is enormously complex - the House version runs 440 pages, the Senate's 515 - laden with phrases such as pass-through companies, repatriation and family flexibility.

"It's a difficult environment," Doggett said.

Doggett is a former Texas Supreme Court justice who occupies an oft-shifting district that stretches along Interstate 35 from San Antonio to Austin. He stays well-armed to ward off serious challengers, none of whom have emerged; his $3.8 million campaign fund exceeds that of any Texan in the U.S. House.

Doggett, 71, is an unabashed liberal who has repeatedly sought to use House rules to demand release of the president's tax returns. He has been unsuccessful. He has established himself as a favorite over the years with like-minded advocacy groups.

"He's been our leader for a long time," said Winnie Stachelberg, executive vice president of the Washington-based Center for American Progress.


Doggett trains some of his barbs at the Republicans' stated goal of enticing companies sheltering assets abroad to relocate in the United States."He's got this great ability to understand the nuances and intricacies of tax policy and budget and yet be able to convey in terms that all of us can understand," she said.

House Speaker Paul Ryan, R-Wisc., said this week: "In a stroke, our bill offers less incentive for companies to move capital, income and intellectual property out of the U.S. to lower tax climes."

But in Doggett's analysis, an investor would have little reason to choose Texas over Germany.

"In San Antonio, your profits will be taxed at 20 percent. If you invest in Stuttgart under their bill, the taxes are alleged to be 10 percent. But, in fact, there are complex provisions of this bill that I think will make the tax rate in Stuttgart essentially zero," he said.

Education has been another of Doggett's focuses in Congress. As part of the Obama administration's stimulus programs eight years ago, Doggett authored the American Opportunity Tax Credit, enabling refundable credits for certain tuition and schooling expenses. Roughly 30 percent of students take advantage.

Now, echoing universities and graduate students, Doggett points to provisions in the House bill which by most accounts would hike the cost of college. One provision would eliminate the student loan interest deduction, which enables people repaying college loans to save up to $2,500. Another would end grad students' exemption from taxes on the waivers covering tuition.

"I have had graduate students tell me that they would have to drop their program if this happens because they're basically getting by on very little now as they do their doctoral and master's programs," Doggett said.

On a recent PBS news show, Doggett's challenge and the gulf between the parties showed in his pairing with U.S. Rep. Kevin Brady, R-The Woodlands, the Ways and Means chairman and principal author of the tax bill.The Senate Finance Committee balked at some of the changes in writing its version, but the two chambers would need to rectify differences before final passage.

"This is a good day for the American people," Brady exclaimed. "We've really stripped the tax code down to its fundamentals and we're rebuilding it based on what our businesses and families need these days, not 30 years ago."

Replied Doggett: "You know, sometimes, I believe that my Republican colleagues live in a parallel universe."