Key Vote Alert – “YES” on the Tax Cuts and Jobs Act (HR 1)

Andrew Roth - November 16th, 2017

KEY VOTE ALERT

“YES” on the Tax Cuts and Jobs Act (HR 1)

The Club for Growth supports the Tax Cuts and Jobs Act (HR 1) and we urge all House members to vote YES on it.  A vote is expected later today.  The vote will be included in the Club’s 2017 congressional scorecard.

Simply put, this bill is very pro-growth.  It slashes the corporate tax rate, enacts full expensing and a territorial tax system, ends the Death Tax, cuts marginal tax rates for individuals, and eliminates several loopholes and deductions, including a partial elimination of the unfair state and local tax deduction (SALT).

That said, this bill is not perfect.  Once this bill is passed and the Senate passes its version, we strongly urge Republican leaders to fix the problems in the bill.  The bubble rate for high-income earners should be eliminated.  The 39.6% top tax rate should also be abolished.  Finally, the conference report must include repeal of the dreaded individual mandate.  If these changes are incorporated into the final bill, passed by Congress, and signed into law by President Trump, we believe the economy will roar.

Our Congressional Scorecard for the 115th Congress provides a comprehensive rating of how well or how poorly each member of Congress supports pro-growth, free-market policies and will be distributed to our members and to the public.

Club for Growth to House Rules Committee: President Trump Provides Solution to SALT Deduction in House Bill

Rachael Slobodien - November 14th, 2017

Washington, DC – Today, Club for Growth President David McIntosh issued the following statement as the House of Representatives begins consideration of the “Tax Cuts and Jobs” Act:

“President Trump’s tweet yesterday that the House should lower the top marginal rate solves the problem for members representing these high-tax states,” explained Club for Growth President David McIntosh.

“Club for Growth has always argued for eliminating the SALT deduction and cutting marginal tax rates for all Americans, which includes those who are most successful as well as middle-class income earners.  A rate reduction to 35 percent for the highest bracket offsets the tax revenue caused from the elimination of the SALT deduction.

“Further, President Trump’s suggestion that Congress repeal the individual mandate in Obamacare provides an offset for revenue lost that fulfills the House’s self-imposed limit on tax cuts.

“Club for Growth urges the Rules Committee to amend the Tax Cut and Jobs Act to include both of the President’s suggestions.  Once incorporated, the House should pass the bill and send it to the Senate for further improvements.”

GOP Must Correct At Least Four Shortcomings of the House Bill to Bring Our Nation Pro-Growth Tax Reform

Rachael Slobodien - November 07th, 2017

Washington, DC – Today, Club for Growth President David McIntosh issued the following statement as the House Ways and Means Committee continues to mark up the “Tax Cuts and Jobs” bill:

“While the corporate tax cut will lead to some increase in our nation’s GDP, the rest of the provisions on individual taxpayers fails the pro-growth test,” Club for Growth President David McIntosh stated.

“Republicans must correct at least four serious shortcomings of the House bill to follow through on campaign promises and to bring our nation closer to a tax reform proposal that is truly pro-growth.

1: millionaires’ tax rate: House Republicans are engaging in class warfare the likes of which would make Democrats green with envy.  Instead of following through with the promise of taking seven brackets and simplifying them to three, Speaker Ryan and Chairman Brady added in a fourth bracket exclusively for millionaires.

2: 45.6 percent “bubble” phantom tax increase:  As The Wall Street Journal noted, some individuals and couples could face up to 45.6 percent marginal rate on earnings between $1.2-1.6 million.  That’s a real tax increase on successful people who invest and create jobs.

3: pass throughs:  Once again, Republicans fail the truth in advertising test here.  At first glance, the House GOP bill looks as if it introduces a degree of tax parity for small and family-owned businesses by taxing them at 25 percent.  But then there’s a catch, only the first 30 percent of their income will be taxed at the 25 percent rate, the remaining 70 percent is taxed as much as 45.6 percent.  The blended, real effective marginal rate is at least 35% and can even be higher.  That means no tax cut at all for most small business and family-owned companies.

4: death tax: Instead of taking this golden opportunity to rid Americans from being taxed even after they’ve died – on assets that they already paid taxes on when living – the House Republican plan waits a full six years before repealing it.  Our question is, why wait?

“All in all, this bill must be changed if Republicans intend to keep their promise of real pro-growth, job-creating tax cuts.”

Club for Growth Applauds House GOP Tax Plan

Rachael Slobodien - November 02nd, 2017

Washington, DC – Today, Club for Growth President David McIntosh issued the following statement upon the release of the House Republican tax reform:

“Few things in Washington have the potential to unleash economic growth and job creation like the prospects of a pro-growth tax plan,” stated Club for Growth President David McIntosh.

“There are lots of components to praise in the House’s tax legislation, like immediate expensing for businesses and cutting the corporate tax rate.  But there are other things that were added at the last minute that will require further analysis and improvement.  For example, the bill does not do enough for small businesses, and by restoring the 39.6 percent tax rate on some taxpayers, the legislation effectively punishes success and caves to the Democrats’ class warfare rhetoric.

“Fortunately, the Senate will have an opportunity to improve upon the shortcomings in the House bill.  Club for Growth is eager to continue working with Congress to implement the most pro-growth tax plan in our nation’s history.”

David McIntosh joins Varney & Co to discuss upcoming Budget Vote and Tax Reform

Stacy French - October 26th, 2017