Club for Growth Applauds Nomination of AG Scott Pruitt as EPA Administrator

Doug Sachtleben - December 07th, 2016

“The EPA’s reign of regulatory malpractice is coming to an end.”

Washington, DC – Club for Growth president David McIntosh released the following statement in response to reports of President-elect Donald Trump’s selection of Oklahoma Attorney General Scott Pruitt to lead the Environmental Protection Agency:

“The EPA’s reign of regulatory malpractice is coming to an end,” said Club for Growth president David McIntosh. “The nomination of Scott Pruitt is a brilliant move by the president-elect, and one that will reap benefits for the American economy. Too often the EPA was the Obama Administration’s weapon of choice for crushing the private sector. We are confident that Scott Pruitt, who has done yeoman’s work in fighting EPA overreach, will restore the wise balance between necessary environmental protections and the operation of free-market industries that cause America to prosper.”

Why ‘Buy America’ isn’t good for Americans

Doug Sachtleben - December 06th, 2016

Published in Conservative Review  12/6/16

By David McIntosh

Americans love competition. When it’s time to buy a product or service we want choices that induce competition.

And when the buyer is the federal government — using our tax dollars — we definitely want the most bang for the buck. Like our president-elect showed in his business when he famously had Trump neckties manufactured overseas, the goal is to deliver the best product at the cheapest price. That’s what taxpayers want; do the job right … do it efficiently … and don’t waste money paying more because some federal bureaucrat wants to steer our dollars to a favored business or to pay off a favor. That’s called cronyism.Cronyism takes on a whole host of forms in Washington. This week it may be tucked in a five billion bill called the Water Resources Development Act (WRDA), as Democrats are pushing hard for “Buy America” provisions in the bill.

For as patriotic as “Buy America” sounds, the truth is this: slapping “Buy America” mandates on federally-funded projects drives up costs, reduces competitiveness, and gives the federal government a green light to pick winners and losers among American businesses.

The U.S. Department of Transportation has estimated that forcing American companies to use only domestically-produced products for infrastructure jobs “will increase the cost of the overall project by more than 25 percent.” That means taxpayers are forced to pay at least another $250 million for every billion dollars of a federally-funded project.

The mandates also give a competitive advantage to some American companies over other American companies. Those that buy their raw materials internationally are likely to be shut out of the process. “Buy America” provisions are a classic example of protectionism and cronyism that protects and benefits certain firms and their employees, while shutting out others.

American businesses are also hurt when other countries retaliate against U.S. protectionism. Some of our largest trading partners have mounted efforts in the past to slow the flow of U.S. products into their countries, and have threatened to raise tariffs on products made by American companies to respond to our government’s “Buy America” protectionism. Again, while one sector of U.S. business is unfairly helped by such mandates, many others suddenly face new obstacles to their markets.

Competition and choice has been the true American way, and the federal government needs to stay out of the business of picking winners and punishing taxpayers. The WRDA legislation is costly enough without adding “Buy America” provisions.

The United States can compete with anyone. Tax reform and deregulation will make sure of that; not cronyism.

Club for Growth Backs House Leadership’s Warning Against Tariffs

Doug Sachtleben - December 05th, 2016

“Tax cuts and deregulation will make the American economy great again, but tariffs and trade wars will make it tank again.”

 Washington, DC – Club for Growth president David McIntosh released the following statement in response to published reports that “House Majority Leader Kevin McCarthy refused to back President-elect Donald Trump’s push for a 35-percent tariff on companies that move operations abroad…”:

“Tax cuts and deregulation will make the American economy great again, but tariffs and trade wars will make it tank again,” said Club for Growth president David McIntosh. “The president-elect is spot on when he calls for cutting taxes and federal regulations, but 35-percent tariffs would be devastating to consumers and businesses. The Majority Leader is right to caution against protectionism and to urge a robust debate on free markets and trade.”

Trump Should Tread Softly On His New Trade Agenda

Doug Sachtleben - December 02nd, 2016

In an op-ed published (11/28/16) in Investor’s Business Daily, Club President David McIntosh and Cato Institute Adjunct Scholar Scott Lincicome addressed economic and legal concerns in the President-elect’s trade rhetoric.

IBD Op-Ed

President-Elect Donald Trump has released an ambitious to-do list. His plans for cutting individual and corporate taxes, for repealing and replacing ObamaCare, and for regulatory reform all hold great promise. But his threat to dismantle the North American Free Trade Agreement (NAFTA), and to use import duties to force our trading partners to bend to his will, would tank any economic recovery and have severe constitutional implications.

It’s crucial to remember the tremendous benefits of trade, particularly through NAFTA.  About one-third of all U.S. merchandise exports are bought by Mexico and Canada, and exports from our service industries and from the agriculture sector have risen dramatically under the agreement.

Thanks to imports, American families effectively stretch their pay check by about $10,000 each year. Around 800,000 American auto industry jobs depend on a seamless North American supply chain to stay globally competitive. American-made raw materials constitute about 40% of the content of the products we import from Mexico, and almost 75% of all U.S. inputs that return here as finished goods come from Canada and Mexico. Undoing NAFTA would cause job losses, lower living standards and economic calamity.

The imposition of tariffs punishes all American consumers, and businesses that use cheap imports as raw material in the things they make. The reward for tariffs goes to a select few in a certain politically connected industry that is being protected. It’s cronyism that hurts all Americans and does nothing to fix whatever perceived problem there was with trade.

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Club on Trump’s Carrier Deal

Doug Sachtleben - December 02nd, 2016

Club President David McIntosh discussed President-elect Trump’s Indiana Carrier deal during an appearance on Fox Business Network’s “Making Money w Charles Payne” on 12-1-16