Op-Ed in WSJ: Club for Growth and American’s for Tax Reform Make the Case for Lasting Tax Reform

Stacy French - June 14th, 2017

The budget window has traditionally been a decade.

But the Senate could make it 25 years.”

Club for Growth President David McIntosh and Americans for Tax Reform President Grover Norquist penned an opinion editorial in The Wall Street Journal making the case for extending the budget window to 25 years or more.

Below is an excerpt of the op-ed, and the piece may be read in its entirety here.

Tax Cuts That Last – With 51 Votes

“Americans know what kind of tax reform they want: a bill that cuts rates across the board, kills the death tax and the alternative minimum tax, expands the personal and family exemptions, and eliminates politically directed loopholes. If lawmakers passed such a plan it would supercharge the economy and create millions of jobs.

The challenge is how to get from here to there, given the rules of Congress.

Tax reform can be enacted with a simple majority in the Senate under the process known as budget reconciliation… [A]ny tax reform meant to spur economic growth should be permanent so that businesses and entrepreneurs can plan ahead. If they don’t know what the rules will be a few years down the road it is tougher to build factories, hire new workers, invest in equipment, or spend on research and development.

Conventional wisdom says that the only way to pass lasting tax cuts is to offset them with corresponding tax increases, base broadening or, best of all, permanent spending cuts.

There’s another option: Extend the budget window to 25 years—or more. The 10-year window is not set in stone. The Budget Act of 1974 simply says that the window has to be at least five years in duration.

The idea of modifying the time frame isn’t new, and it certainly isn’t radical. The budget window was expanded in 1995 from five years to seven, and then in 1999 to 10 years, where it has remained for no particularly good reason.

We say extend the budget window to 25 years. Why? Because the people creating jobs and investing in new products think long-term. Depreciation schedules for new plant and equipment often run to 25 years or more.

Lawmakers simply should write this year’s budget to say that all tax cuts can last 25 years, which would allow rate reductions to go into effect now and be offset later with revenue from higher growth or spending restraint.”

“… As President Trump says, “prime the pump” now and the economy will start to flow, creating millions of jobs and more tax money for Washington… Extending the budget window to 25 years would cut the Gordian knot, unravel the Byrd Rule and allow serious tax reform to create millions of jobs in the years to come.”

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Club for Growth Draws a Line in the Sand on Obamacare Repeal

Rachael Slobodien - June 13th, 2017

“This bill must be a real repeal of Obamacare; it must help hardworking Americans to be able to buy affordable health insurance.”

Washington, DC –As the Senate continues to work through what should constitute an Obamacare repeal bill, Club for Growth President David McIntosh drew a line in the sand and released the following statement:

“While we await the release of the Senate bill’s text, one thing that is not open to debate or interpretation is that this bill must be a real repeal of Obamacare; it must help hardworking Americans to be able to buy affordable health insurance,” stated Club for Growth President David McIntosh.

“There are two tests for whether the Senate bill is an improvement over the House bill:

First, the Senate bill must do more to reduce the costs of health insurance premiums.  This means further rolling back Obamacare regulations and opening up competition across state lines.

Second, the Senate bill must be a real repeal of the other portions of Obamacare, including the tax hikes and dramatic expansion of Medicaid.

Club for Growth has long fought to repeal Obamacare—and would like to see a repeal bill pass— but current discussions should not lead to a weakening of what constitutes a real repeal of Obamacare.”

Today, the Club for Growth also joined with Americans for Tax Reform and nearly 50 conservative groups and sent a letter to Senator Orrin Hatch urging him to include a repeal of Obamacare’s taxes in the Senate’s forthcoming Obamacare repeal legislation.  Here is a link to view the letter in its entirety.

Coalition Letter Urging Senate to Repeal Obamacare Taxes

Rachael Slobodien - June 13th, 2017

45 Conservative Groups and Activists: The Senate Should Repeal All Obamacare Taxes

 

June 13, 2017

The Honorable Orrin G. Hatch
Chairman, Senate Committee on Finance
219 Dirksen Senate Office Building
Washington, DC 20510

Dear Chairman Hatch:

As the Senate continues to make progress on legislation to repeal and replace Obamacare, we urge you and your colleagues to include repeal of the nearly 20 taxes imposed by the law.

During a February 1 speech at the Chamber of Commerce, you declared, “All of the ObamaCare taxes need to go as part of the repeal process.”

We agree.

Recent media reports suggest that the Senate may be wavering on repeal of these taxes. This would be a mistake. The final Senate repeal package should retain the broad tax relief that was included in the House passed American Health Care Act.

The roughly one trillion dollars in new or higher taxes imposed by Obamacare directly hit middle class families and small businesses, raise the cost of healthcare, and reduce access to care.

Obamacare taxes directly suppress economic growth. The best example of this is the 3.8 percent so-called Net Investment Income Investment Tax (NIIT) on capital gains and dividends. Historically, capital gains taxes have a significant negative impact on capital formation, productivity, and economic growth while raising little or even negative revenue.

Repealing the 3.8 percent NIIT would return the capital gains tax rate to 20 percent, the rate agreed to by President Clinton and a Republican Congress in 1997.

A related tax hike is the 0.9 percent Medicare surtax on wages and self-employment income, the repeal of which was unfortunately delayed six years by an amendment in the House.  It should be repealed as expeditiously as possible.

Other Obamacare taxes directly impact the ability of Americans to meet healthcare costs, such as the income tax hike on families with high medical bills. Around 10 million families pay $200 to $400 in higher income taxes each year because Obamacare increases the threshold at which families can deduct medical expenses paid out of pocket.

Obamacare also makes it harder for individuals to save for their own healthcare choices. Roughly 20 million Americans use tax-advantaged Health Savings Accounts (HSAs) to save for healthcare costs. Another 30 million use Flexible Spending Accounts. There are multiple taxes that restrict the ability of families to use these savings accounts, which limits the choice of consumers.

Other taxes hit certain healthcare industries, such as insurance providers, medical device and prescription drug manufacturers. Inevitably, these taxes are passed onto American families in the form of increased costs.

Finally, the tax associated with the employer mandate has limited millions of Americans to part-time work and the tax penalty associated with the individual mandate hit eight million Americans in 2014, with a family of four facing an income tax hike exceeding $2,000.

True repeal of Obamacare means repealing the Obamacare taxes and the Senate should resist the urge to deprive taxpayers of relief in order to pay for higher spending.

We commend you on your stance to repeal these Obamacare taxes and urge any final package accelerate or at least maintain the House-passed tax reductions. (more…)

Key Vote Alert – “YES” on The Financial CHOICE Act (HR 10)

Andrew Roth - June 07th, 2017

KEY VOTE ALERT

“YES” on The Financial CHOICE Act (HR 10)

The Club for Growth urges all House members to support the The Financial CHOICE Act (HR 10).  A vote is expected later this week.  The vote will be included in the Club for Growth’s 2017 Congressional Scorecard.

Financial regulations created by the 2010 Dodd-Frank Act have strangled capital formation and lending, contributing to the anemic economic growth in our country over the last seven years.  This bill would repeal and reform large parts of that disastrous bill, ending a lot of the overreaching regulations that extended far beyond Wall Street.

Some of the CHOICE Act’s pro-growth provisions include requiring congressional approval for all major financial regulations, similar to the broader REINS Act that the House passed with unanimous GOP support in January.  It would also structurally reform the Consumer Financial Protection Bureau, stripping the agency of its much-too-broad authority.  Likewise, the bill repeals the incentives for bad behavior by lessening the “too big to fail” policies that Dodd-Frank codified into law.

Deregulatory policies have been essential this year in jump-starting the economy and sparking a newfound level of confidence in the private sector.  Passage of this bill will help encourage and continue that trend.

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.

Op-Ed in The Hill: ObamaCare repeal must include Medicaid reform

Rachael Slobodien - June 05th, 2017

Today, Club for Growth President David McIntosh and Heritage Action CEO Michael Needham, coauthored an op-ed in The Hill.  In the piece, the two explain the need to include Medicaid reform in efforts to repeal Obamacare.

Read the op-ed in its entirety here and an excerpt below.


 

ObamaCare Repeal Must Include Medicaid Reform

The Hill

By: David McIntosh and Michael Needham
June 5, 2017

At this point it is clear that Republicans have no intention to repeal ObamaCare “root and branch” as so many promised on the campaign trail. Many congressional Republicans have begrudgingly accepted that a significant number of their colleagues were only pretending. Since coming to that conclusion, those conservatives are plotting a path forward in the repeal and replace debate that respects taxpayers and drives down the skyrocketing cost of health insurance. That dynamic was on full display in the House as the conservative Freedom Caucus and a handful of moderates worked in good faith to address the crippling costs of ObamaCare’s regulatory architecture.

A similar opportunity exists in the Senate to improve both the regulatory reforms and various other provisions, but there are serious policy risks in the upper chamber as well. One of the most notable is that some moderate Republican Senators are trying to delay the phase out of ObamaCare’s generous Medicaid expansion subsidy and increase the program’s growth rate. Having already conceded on full repeal of ObamaCare, conservatives should resist attempts to essentially lock the failed law’s over-subsidization of the Medicaid expansion in place.

The notion that the House-passed American Health Care Act (AHCA) does not provide a soft enough landing for Medicaid expansion states to transition into a new financing system is inaccurate. If the AHCA were to become law, ObamaCare’s expansion of Medicaid to cover able-bodied, childless adults will remain. . .

. . . (more…)