Club for Growth Launches TV Ad Urging Rep. Kristi Noem to Oppose Border Adjustment Tax

Doug Sachtleben - February 22nd, 2017

“Congresswoman Noem’s constituents need to know if she will fight for them and oppose the BAT.”

Washington, DC – Club for Growth president David McIntosh released the following statement about a new Club for Growth TV and digital ad campaign that urges Congresswoman Kristi Noem (SD-AL) to oppose the Border Adjustment provision in the tax reform proposal put forth by House Republicans:

“The Border Adjustment Tax will drive up prices on everyday consumer goods like groceries, gas, clothes and shoes,” said Club for Growth president David McIntosh. “House Republicans have offered good tax reform proposals, like lowering rates, repealing the Death Tax, and cleaning up the tax code, but the Border Adjustment Tax will hurt American families. Congresswoman Noem has a key position in Congress on tax policy and her constituents need to know if she will fight for them and oppose the BAT.”

The Club’s new ad can be seen here and will begin broadcasting statewide in South Dakota on February 22, with an ad buy of more than $150,000 for TV and digital outlets.

It is expected to be the first of a series of ads that the Club for Growth will air on the BAT tax in states and districts across the country.

(more…)

Club for Growth Urges Vote on Obamacare Repeal and Replacement

Doug Sachtleben - February 16th, 2017

“Quickly schedule votes on the 2015 Obamacare repeal bill, and on the new replacement legislation from Senator Rand Paul and Congressman Mark Sanford.”

Washington, DC – Club for Growth president David McIntosh released the following statement after Rep. Mark Sanford (SC-01) introduced Obamacare Replacement legislation that is the companion to the Senate bill introduced by Sen. Rand Paul (KY):

“This isn’t complicated: Republican leaders on both sides of Capitol Hill should quickly schedule votes on the Obamacare repeal bill that was passed in 2015 and on the Obamacare replacement legislation from Senator Rand Paul and Congressman Mark Sanford,” said Club for Growth president David McIntosh. “With these bills, conservatives in Congress have charted a clear course to replace Obamacare with strong free-market solutions. Voters gave Republicans the charge to repeal and replace Obamacare, and the continued delays and discussions about repairing Obamacare need to stop.”

Wall Street Journal: Why the U.S. Could Suffer Deeper Economic Shock Than China in a Trade War

Doug Sachtleben - February 15th, 2017

From the Wall Street Journal, 2/13/2017

 

Retaliation could cause inflation to surge and cut demand for U.S. goods

A lot of economists aren’t factoring a U.S.-China trade war into their central forecast scenarios, counting on the Trump administration to curb its sharpest protectionist tendencies.

But what if it doesn’t?

“Bad for the world, worse for the U.S.,” says Nicholas Fawcett, a senior global economist with Goldman Sachs. “Trade is not a zero-sum game; by curbing imports, the U.S. could lose out in the long run.”

Mr. Fawcett figures a 45% tariff on Chinese imports and 35% fees on goods from Mexico translate into an effective tariff rate of around 11%, given their share of total U.S. trade.  Assuming Beijing and Mexico City retaliate with equivalent tariffs, he estimates it could depress U.S. gross domestic product by 0.7 percentage point by 2019. That’s more than twice the hit on China’s growth, at 0.3 percentage point. Roughly 21% of the value of U.S. imports are from China, more than double that of China’s imports from the U.S.

The most immediate impact would be a surge in prices for American consumers, given that around 10% of the basket of prices that comprise the inflation index is imported. The U.S. imports roughly three-quarters of its toys, shoes, computers and telecoms equipment from China and other Asian emerging markets.

The higher costs for U.S. goods abroad would also sink demand for American exports.

“In fact, tariffs would likely hit U.S. GDP so sharply that the Federal Reserve would be prompted to reduce interest rates to cushion the blow—despite an increase in inflation,” Mr. Fawcett says in a Goldman Sachs research report.

Ian Tomb, a macro strategist with Goldman, says either a surge in input costs for U.S. production or falling demand “could prompt globally connected firms to reduce wages and cut workers.”

That’s why among the losers will be some of his most ardent supporters: blue-collar workers who helped sweep him to election victory.

The fallout would spread to other countries, including Europe and Japan, as U.S. demand for international goods slumped. U.S. allies with strong trade relationships with China such as Korea would get hit from both sides of the shock. And with the Fed cutting rates and the dollar subsequently weakening, the yen and the euro would appreciate, adding to their woes.

The potential danger of a trade war is why the International Monetary Fund and others aren’t including a tit-for-tat tariff brawl in their projections. (Here’s why the IMF is worried about rising protectionism globally.)

But, warns the Institute of International Finance, “The likelihood of harsher trade initiatives should not be underestimated.”

Border Adjustment would be a Tax Increase

Doug Sachtleben - February 13th, 2017

Club President David McIntosh explained what’s wrong with the Border Adjustment Tax proposal from House Republicans during an appearance on Fox Business Network (2/10/17).

Manchin Sides with Washington Special Interests

Doug Sachtleben - February 07th, 2017

“Many West Virginians responded to Club for Growth ads and urged Senator Manchin to support President Trump’s nominee for Education Secretary.”

Washington, DC – Club for Growth president David McIntosh released the following statement after Senator Joe Manchin joined a failed effort by Washington liberals in voting against the confirmation of Betsy DeVos as Secretary of Education:

“We know that many West Virginians responded to calls and ads by the Club for Growth and called Senator Manchin’s office to urge him to support President Trump’s nominee for Education Secretary,” said Club for Growth president David McIntosh. “Unfortunately, Senator Manchin sided with the power and money of the teachers unions in voting against the president’s nominee, who presents a clear threat to their status quo. The Club for Growth remains committed to alerting Manchin’s constituents when he sides with Washington special interests and votes against their conservative pro-growth principles.”