Unearthed clip exposes how far Talarico was willing to go on raising taxes during COVID era

James Talarico, the Democratic nominee for the Senate in Texas, once pressed Democrats to consider cuts to healthcare benefits a nonstarter — regardless of the consequences for the state’s finances.

The remark came during a podcast interview in which Talarico discussed how Texas might balance its budget amid COVID-related shortfalls. He feared Republicans would look for savings in healthcare services.

"I don't care where you get the revenue. I don't care what taxes you have to raise," Talarico said in a 2020 appearance with Texas Rising, a progressive YouTube channel focused on political engagement among younger voters.

The resurfaced moment adds to the pile of past statements dealing with gender, immigration and fiscal management, complicating the political calculus for Talarico as he aims to convince voters in Texas that he could represent a Republican-leaning constituency, even as a Democrat.

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At the time, Texas was facing a bleak financial outlook.

The pandemic had crippled key sections of the state’s regular revenue streams. As oil demand crashed nationally, tax revenue that would normally come from hotels, bars and restaurants also faced steep reductions. Texas Comptroller Glenn Hegar projected a $4.6 billion shortfall.

"The economic contraction associated with COVID-19 has resulted in revenue collection this fiscal year that is much lower than our earlier projections," Hegar said in a statement.

"This estimate also assumes that restrictions on businesses and individuals will be lifted before the end of this calendar year and that economic activity will strengthen."

As a part of the COVID response, Texas ordered most agencies to look for ways to cut their spending by 5% in the 2020 – 2021 budget.

In a letter, Governor Greg Abbott largely shielded Health and Human Services (HHS) from the reductions, sparing the state’s Medicaid program, the Children’s Health Insurance Program, the foster care program and disability services, among others. Even so, $2.6 billion of HHS’s budget remained subject to cuts, according to the agency's estimations.

That left the Health and Human Services Commission with a target of $132,716,600 in cuts.

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Despite the reduced figure, Talarico blasted the idea of making spending reductions geared towards healthcare.

"You're not going to make our students and our teachers — you're not going to make the sick and the elderly pay for this pandemic we are not going to balance our budget off of the most vulnerable people in this state," Talarico said.

He argued that Democrats should create a similar kind of stigma against cuts to HHS as the one surrounding raising taxes.

"Sometimes you get the reaction in the capitol that's an unreasonable position to take. But the other side of the aisle has already taken revenue increases off the table. They've done a good job of making certain options taboo, so I think our coalition, not just Democrats but progressives, and anybody with a functioning heart should be able to make cuts to health and education taboo and take them off the table," Talarico said.

The moment has brought on criticisms from at least one Republican onlooker.

"High-tax Talarico never saw a tax hike he didn't love in the Texas Legislature, and he is promising to continue that if elected to the Senate. James Talarico will raise taxes on every Texan to fund his radical agenda of taxpayer-funded sex changes for kids and free healthcare for illegal immigrants," Zach Kraft, a spokesperson for the Republican National Committee said in a statement to Fox News Digital.

As he wages his bid for U.S. Senate, Talarico has advocated for an expansion of U.S. health policy.

On his website, Talarico has called for universal eligibility for Medicare, to regulate medical debt and expand veteran care. His views on Medicare, which overlap with many other progressives in the party, have prompted criticism from Republicans who believe such an expansion would cripple the federal budget with cost.

Skeptics of the plan have argued for years that such an expansion is too expensive and does little to address existing inefficiencies in the American healthcare system.

In 2019, Sen. John Barrasso, R-Wyo., took to the Senate floor to blast the idea, calling it a straitjacket solution that would undermine healthcare quality.

"The [Congressional Budget Office] projects in its report on a single-payer plan that government spending on health care would increase substantially. They go on to say to cover the massive cost of government-run care, income taxes would have to at least double. Income taxes, American families — at least double," Barrasso said.

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Talarico’s campaign did not address questions on whether his designs for healthcare are shaped by the national deficit, but noted that his plan includes increases in taxes on the country's top earners.

"James supports making billionaires pay their fair share so we can cut taxes for middle class Texans and fund healthcare for working families — which is why he has unveiled plans to end special tax handouts to corporations and billionaires to help fund healthcare, while proudly voting for the largest property tax cut in Texas history to make sure middle class families get a break," the Talarico campaign told Fox News Digital. "Ken Paxton has worked to enrich himself and his billionaire mega-donors, amassed 15 properties on a taxpayer-funded salary, and was impeached by his own party for his corrupt abuse of office."

Having cleared the party primary, Talarico will face off against Republican Senate nominee Ken Paxton in the state’s Nov. 3 general election.