Doug Sachtleben - January 24th, 2017
“Pro-growth tax reform is not creating a new middle-class consumer tax to take the place of high corporate taxes.”
Washington, DC – Club for Growth president David McIntosh released the following statement in response to published comments by the Chairman of the House Ways and Means Committee on the border adjustment provision in the House Republicans’ tax reform plan:
“Pro-growth tax reform is not creating a new middle-class consumer tax to take the place of high corporate tax rates,” said Club for Growth President David McIntosh. “There is no budget rule that requires Congress to raise one tax when it cuts another. House Republicans are already threatening to sacrifice pro-growth tax reform on the canard of revenue neutrality. Instead of trading one tax for another, the GOP needs to focus on cutting rates, and cutting spending and the size of government to match.”
Doug Sachtleben - January 24th, 2017
“President Trump’s order will reduce the cost of government actions and help reduce the deficit.”
Washington, DC – Club for Growth president David McIntosh released the following statement in response to President Trump’s signing of an order aimed at expediting environmental reviews and approvals for infrastructure projects:
“President Trump’s order to speed up environmental reviews and approvals for infrastructure projects is a crucial first step in bringing sanity and efficiency to government projects,” said Club for Growth president David McIntosh. “Accelerating reviews that have been burdensome and often unnecessary is pro-growth because it will reduce the cost of government actions and help reduce the deficit. Under Obama, liberal special interests and Washington bureaucrats made an art out of gaming the regulatory system to stall projects and drive up costs borne by taxpayers. Today’s action puts a first, much-needed stake in the heart of Washington’s beloved regulatory state.”
David McIntosh - January 24th, 2017
BY DAVID MCINTOSH, OPINION CONTRIBUTOR - 01/23/17 01:40 PM EST
President Trump has chosen a smart and proven fiscal hawk to direct his Office of Management and Budget (OMB), South Carolina Congressman Mick Mulvaney. He has a record of leading Republicans and even working with Democrats to cut federal spending, rein in the debt, and shine the light of transparency on how the federal government handles our tax dollars.
In 2011, just months after arriving in Congress, Mulvaney drafted the Cut, Cap, and Balance Act, which became the centerpiece of the conservative response to another proposed increase in the debt ceiling.
Mulvaney and other House Republicans agreed to swallow the higher debt limit in exchange for real spending cuts, caps on future spending, and serious action toward a Balanced Budget Amendment to the Constitution.
Cut, Cap, and Balance passed the House with bipartisan support, but was killed off by 51 Senate Democrats.
Five-and-a-half years ago, when Mulvaney’s Cut, Cap, and Balance Act was rejected in the Senate, the federal debt was already at $14.3 trillion. Today, it’s nearing $20 trillion. It should be clear by now that it’s time to listen to what Mulvaney has to say about federal spending.
The Office of Management and Budget (OMB), is charged with developing the president’s federal budget. Writing the White House budget is a serious responsibility that should produce a realistic reflection of the president’s priorities. That budget is also supposed to be the opening entry in a serious back-and-forth dialogue between Congress and the administration. (more…)
David McIntosh - January 23rd, 2017
Let’s Bury The Idea Of A Border Adjustment Tax
by David McIntosh, President, Club for Growth
January 23, 2017
There are serious problems with the U.S. corporate tax code: The corporate tax rate of 35% is the highest in the industrialized world, and U.S.-based companies are taxed at that rate when they bring overseas profits back into the country. For those reasons and more, there is widespread agreement that our corporate tax code is broken and in need of reform.
House Republicans now have a prime opportunity to undertake corporate tax reform, and they’ve proposed some pro-growth ideas, including rate reductions, incentives for investment, and reform in how purchases are expensed.
Unfortunately, all of that good reform could be wiped out by a separate complicated proposal from the House GOP that amounts to a costly new consumer tax called the Border Adjustment Tax (BAT).
Under the BAT, or border adjustability tax, imports are taxed and exports are exempted. Here’s how that looks: A local retailer pays $40 to import a gadget that it then sells for $50. Under current tax law, that retailer can deduct its cost and only owe tax on the $10 profit. But, with a BAT in place, that retailer would owe corporate taxes on the full $50 sale price.
Consider how four possible scenarios apply to that same sale: Under the current system, the 35% tax eats away $3.50 of the company’s profit. If House Republicans successfully lower the tax rate to 20%, the company would pay $2 to Washington. If President-elect Trump stands firm on his proposed 15% rate, then even more money is kept in the economy and not paid in taxes. (more…)
Doug Sachtleben - January 19th, 2017
Could we finally see dramatic cuts in federal spending? According to published reports, key members of the Trump transition team are preparing a blueprint to reduce federal spending by $10.5 trillion over ten years. The plan includes privatizing public television, and eliminating programs like the National Endowment for the Arts, along with other major department cuts.
Congressional Republicans need to grab this proposal and run with it. They have a prime opportunity to reverse the trajectory of the massive federal expansion that’s been happening for years in Washington.