Andrew Roth - April 25th, 2007
Washington &mdash The Club for Growth hailed the Dow Jones’ record-breaking average of 13,000 today as proof of a vibrant economy and the free market at work.
When President Bush proposed the largest, pro-growth tax cuts in a generation, Democratic and even Republican critics predicted economic disaster, but the economic prosperity of the past several years and today’s shattering average only six months after the Dow hit 12,000 ought to silence the critics and the alarmists on both sides of the aisle.
“In the four short years since the 2003 tax cuts, the market has exploded, growing over 50% and producing $6.1 trillion in new shareholder wealth,” Club for Growth President Pat Toomey said. “Breaking the 13,000 barrier today is further testimony that low taxes and free-market policies are good for the economy. It is clear that the 2001 and 2003 tax cuts set the country on a pro-growth path that is continuing today. For those who talk about raising taxes and letting the Bush tax cuts expire, today’s record-breaking average ought to be a warning to leave a good thing alone.”
Andrew Roth - April 24th, 2007
Time to Reform Sarbanes-Oxley
Washington &mdash The Club for Growth urges all members of Congress to put politics aside for the sake of America’s small businesses and vote for Senator Jim DeMint’s (R-SC) amendment giving small public companies the option of opting out of the most onerous regulations of Sarbanes-Oxley.
Passed in 2001 as an overreaction to corporate scandals, Sarbanes-Oxley extracts an unduly high toll on America’s vital small businesses. According to a recent GAO study, the cost of complying with Sarbanes-Oxley for small public companies is disproportionately higher than for larger companies. Because of this unfair disadvantage, many small companies are opting to remain private, limiting their access to capital and their ability to grow.
Senator DeMint’s amendment will allow companies to opt out of Section 404&mdashrequiring an internal and external audit&mdashif they meet one of the following three conditions: market capitalization of less than $700 million; revenue of less than $125 million; or fewer than 1,500 shareholders.
“While concerns about corporate malfeasance were legitimate, Sarbanes-Oxley has become the poster child for punishing the many because of the sins of the few,” Club for Growth President Pat Toomey said. “And for small businesses, the punishment is particularly harsh, making it nearly impossible for them to compete on a level playing field.”
“America’s small companies are a celebration of the country’s entrepreneurial spirit and an integral part of the country’s economic vitality,” Mr. Toomey continued. “Already, reform of Sarbanes-Oxley has garnered bipartisan support. It is time for Republicans and Democrats to unite to protect small businesses.”
Andrew Roth - April 23rd, 2007
Social Security Fund Trust Fund Still Doomed
Club For Growth Argues for Market-Based Reform
Washington &mdash The Club for Growth reiterates its commitment to genuine market-based Social Security reform in light of the funding crisis projected by the Social Security Administration’s 2007 Trustee Report.
Released earlier today, the report predicts that Social Security costs will outstrip tax revenue coming into the “trust fund” by 2017. But, of course, the “trust fund” is not a fund in any meaningful sense of the word. Absent reform, by 2017, the government will be facing either a politically untenable benefit cut or, more likely, a huge tax increase.
“Social Security’s funding crisis isn’t going anywhere unless we do something about it,” Club for Growth President Pat Toomey said. “Today’s report only drives home the need for real market-based Social Security reform in the form of personal accounts. Not only will personal accounts go a long way to solving the fund’s insolvency problem, but, more importantly, they will also restore personal freedom and independence to America’s workers.”
“Some politicians refuse to embrace personal accounts because they mistakenly believe that the American people cannot make their own decisions about how to invest and save for retirement. It comes down to a basic lack of faith in the American people and an overabundance of faith in themselves. Throughout our history, Americans have always preferred more choice and freedom over less. Social Security is no different.”
Andrew Roth - April 23rd, 2007
Edwards and Huckabee Say No to South Korea Trade Deal and Yes to Higher Prices
Washington &mdash Presidential candidates Democrat John Edwards and Republican Mike Huckabee expressed their disapproval of the new trade agreement between the U.S. and South Korea. Constituting the largest free trade agreement since NAFTA, the trade pact would eliminate over 90% of tariffs currently plaguing U.S. exports to South Korea.
At an invitation-only breakfast this morning sponsored by The American Spectator, Mike Huckabee signaled his opposition to the South Korea deal on the grounds that free trade “isn’t free if it’s not fair.” John Edwards declared his opposition outright at a campaign stop in Michigan over the weekend.
“Instead of lining up against the South Korea trade deal, presidential candidates of all stripes should be clamoring to announce their support for a deal that will be a boon for American businesses and consumers,” Club for Growth President Pat Toomey said. “While both Mike Huckabee and John Edwards cite their concern for the middle class, America’s withdrawal from the global economy will hurt the very people they claim to protect. Whether you are a Republican or a Democrat, less competition, lower quality, and higher prices are bad for all Americans.”
Andrew Roth - April 23rd, 2007
Democratic Candidates to Taxpayers:
Read Our Lips — We Will Raise Taxes
“Too many people have made too much money” — Hillary Clinton
“To the extent that we’ve got a fiscal crisis right now, part of it is prompted by a bullheaded insistence on the part of the president, for example, that we should extend all of his tax cuts” — Barack Obama
“Yes, we’ll have to raise taxes” &mdash John Edwards
Washington – It is now official: The major Democratic presidential candidates are running on the Walter Mondale economic platform. According to the New York Times, Hillary Clinton, Barack Obama, and John Edwards have pledged to raise America’s taxes in order to fund their overbloated spending programs. If elected president, they refuse to extend many of the Bush tax cuts, including a variety of income, capital gains, and dividend cuts.
“With the Dow approaching an unprecedented 13,000, it is clear that the 2001 and 2003 tax cuts have created greater economic prosperity for all Americans while putting the country on a path towards a balanced budget,” Club for Growth President Pat Toomey said. “Apparently, the Democratic presidential candidates have a problem with low taxes, new jobs, greater economic growth, and shrinking deficits.”
“Hillary Clinton, Barack Obama, and John Edwards think they can spend your money better than you can,” Mr. Toomey continued. “One need only look at the outrageous pork projects the new Democratic Congress stuffed into the war supplemental bill to know that tax dollars are better left in the hands of the taxpayers. The American people didn’t like Mondale’s tax hikes in 1984, and they won’t like the Mondale plan any better in 2008.”