Club for Growth Leads Coalition Urging Trump to End Taxation of “Phantom Income;” Encourages Executive Order
Rachael Slobodien - September 26th, 2017
Washington, DC – Today, Club for Growth along with nearly 30 other conservative groups sent a letter to President Trump and Treasury Secretary Steve Mnuchin asking that they issue an executive order that would index capital gains to inflation so that taxpayers are no longer forced to pay taxes on “phantom” gains. In the letter, the conservative organizations explain that this Executive Order can essentially serve as a pro-growth “down payment” to help ignite the broader conversation of tax reform ahead of the Big Six’s proposal.
Below is the text of the letter along with a full list of organizations who signed it.
Dear President Trump and Secretary Mnuchin,
On behalf of the following organizations representing millions of American taxpayers, we write to strongly recommend that you end the tax injustice that is currently included in the computation of capital gains. Specifically, we request an Executive Order that would index capital gains to inflation so that taxpayers do not pay taxes on “phantom” gains.
For much the same reason that income tax brackets were indexed to inflation over 30 years ago, we believe that it is only a matter of fairness to do the same for capital gains.
For example, if someone saving for retirement purchased an S&P index fund for $1000 in 1997 and dutifully held it for 20 years, they could now sell it for $2665. That’s a gain of $1665. Unfortunately, the full amount would be subject to taxation. But $538 of that $1665 isn’t a real gain at all. It’s phantom income that was eaten away because of inflation. And yet, taxpayers are currently forced to pay taxes on this nonexistent income.
Signing this Executive Order would have an immediate, pro-growth effect on the American economy. The real after-tax rate of return on all equities would immediately be priced higher – thereby increasing the wealth held by the millions of working and retired Americans who own 401ks, IRAs, mutual funds, and brokerage accounts. It would further encourage people to expand their savings, and incentivize people to start doing so. By preventing the money from unjustly going to the government, it could be re-invested in the economy, allowing businesses to expand, innovate, and create more jobs.
We strongly believe that this Executive Order is a pro-growth “down payment” that will help ignite the broader conversation about tax reform. And our groups look forward to the opportunity to continue working with the Administration to enact comprehensive tax reform this fall.
Graham-Cassidy Opens the Door to Begin a Full Repeal of Obamacare; Additional Provisions Necessary to Reduce Costly Regulations
Rachael Slobodien - September 19th, 2017
Washington, DC – Today, Club for Growth President David McIntosh issued the following statement to encourage Senators Graham and Cassidy to include additional provisions in their legislation to reform Obamacare:
“Republicans must deliver on the nearly eight-year promise to repeal Obamacare,” stated Club for Growth President David McIntosh.
“The current vehicle that opens the door to begin a full repeal of Obamacare is the Graham-Cassidy legislation. While it is better than Obamacare, there’s no doubt this legislation still falls far short of a full repeal and does not do enough to lower health insurance costs.
“One proposal that would do much to strengthen this legislation is Senator Cruz’s revised Consumer Freedom amendment to roll back the harmful and costly regulations at the heart of Obamacare. Consistent with Graham-Cassidy, this addition would further empower states by allowing an opt-in process which gives the states an opportunity to choose which regulations to follow. If this change is incorporated in the final version of the Graham-Cassidy legislation, Club for Growth will plan to support the bill.
“Make no mistake, passage of Graham-Cassidy legislation is not the end of the effort to repeal Obamacare. Conservatives will continue to fight for Congress to do more to repeal Obamacare in order to protect families who have suffered greatly from increased health insurance costs.”
Rachael Slobodien - September 18th, 2017
Washington, DC – Today, Club for Growth PAC released poll results that reveal North Dakota voters are ready for someone other than Sen. Heidi Heitkamp to represent them in the U.S. Senate. Highlights from the poll can be found here. The findings certainly make Heitkamp’s reelection chances difficult.
Specifically, the polling revealed:
- According to likely voters, Heitkamp hasn’t accomplished enough and doesn’t deserve reelection. A plurality of North Dakota voters now believe it’s time to elect someone new.
- North Dakota State Treasurer Kelly Schmidt leads Heitkamp on the ballot by four points.
- Heitkamp’s refusal to repeal Obamacare is damaging. Heitkamp possesses a number of vulnerabilities, but casting the deciding vote against Obamacare repeal is especially damaging to her reelection prospects.
The survey was conducted for Club for Growth by WPAi on September 10-11, 2017. The study has a sample size of n=406 likely voters (40% cell phone interviews) and a margin of error equal to ±4.9% in 95 out of 100 cases.
Club for Growth PAC and Club for Growth Action are political arms of the Club for Growth, a 501(c)(4).
Club for Growth: Congress Must Offset Harvey Spending; Urges Separate Consideration of Debt Ceiling Increase
Rachael Slobodien - September 05th, 2017
“Opportunistic politicians are using this tragedy as a blank check to fund pet projects. They are exploiting victims to hand out pork — it’s despicable.”
Washington, DC – Today, Club for Growth President David McIntosh issued the following statement in response to press reports that the House of Representatives and the Senate this week will likely vote on a Harvey spending bill and a debt ceiling increase. The House is expected to vote on the Harvey relief bill as early as this Wednesday. The vote will be included in the Club for Growth’s 2017 Congressional Scorecard:
“The events last week in Houston were devastating, but even before the murky waters in Texas have fully receded, Congress is already up to its old shenanigans,” stated Club for Growth President David McIntosh.
“That’s because when special interests and lobbyists hear the magic words ‘emergency spending’ their eyes light up like a kid at Christmas-time. Instead of reserving emergency funds for those in greatest need of assistance, opportunistic politicians are using this tragedy as a blank check to fund pet projects all over the country. They are exploiting victims to hand out pork — it’s despicable.
“Club for Growth has long fought for offsetting emergency spending for natural disasters and will continue to do so. Disasters like Harvey may be unpredictable, but we know with 100 percent certainty that they will occur. Congress needs to stop using the ‘emergency’ label as an excuse for politicians to spend money without paying for it. All disaster relief should always be paid for. Period.”
With regard to the debt ceiling increase, David McIntosh noted, “The idea of coupling an increase in the debt ceiling with a Harvey spending bill is equally abhorrent. For months, Secretary Mnuchin advocated for a clean debt ceiling. That measure – increasing our nation’s spending ability without significant structural reforms – was reckless enough on its own. But now, with the Senate’s intention to add Harvey spending to a debt ceiling increase, even calling it a ‘clean’ increase is a misnomer; this action is dirtier than ever.”
Club for Growth Leads Coalition Urging President Trump to Stand Firm against Special Interest Pressure to Drop Ex-Im Pick
Rachael Slobodien - August 07th, 2017
“It is beyond audacious that the recipients of the Bank’s subsidies believe they can select the person to run the very agency that will hand the goodies out to them.”
Washington, DC –Today, Club for Growth sent a coalition letter to Senator Michael Crapo, Senate Chairman of the Banking, Housing, and Urban Affairs Committee, to denounce special interests who seek to strongarm President Trump into dropping the appointment of Scott Garrett as the next president of the Export-Import Bank. Additionally, the conservative organizations announce opposition to any nomination (or slate of nominations) to Ex-Im’s board if Garrett’s nomination is not considered.
The letter can be read in its entirety below or can be viewed in pdf version by clicking this link.
Dear Chairman Crapo,
On behalf of the following organizations representing millions of Americans, we write to strongly denounce the special interest business groups that are urging the White House to drop the appointment of Scott Garrett as the next president of the Export-Import Bank.
It is beyond audacious that the recipients of the Bank’s subsidies believe that they, not the President, can select the person to run the very agency that will hand the goodies out to them. This is regulatory capture at its worst.
Cronyism and corruption have long plagued the Bank’s operations. When special interests publicly demand their spoils in such an egregious manner, it only further erodes the public’s confidence in their government.
President Trump has successfully appointed reformers to lead other agencies – like Scott Pruitt at the EPA and Betsy DeVos at the Department of Education. His appointment of Garrett is in keeping with his courageous reform agenda to “drain the swamp.” For special interest groups to dictate the terms of his appointments is precisely the wrong message to send to the American people.
As recently as 2015, the Bank had almost 800 fraud claims levied against it. There have been 85 indictments, 48 criminal judgements, and 66 years of prison sentences brought to bear because of the Bank’s activities. Letting special interests continue to control the Bank’s leadership and operations will only extend this disastrously corrupt track record.
We’re extremely hopeful that President Trump will ignore the special interests that are so desperate for their Export-Import Bank gravy train to continue. To that end, our groups and the people we represent, will vocally oppose any nomination (or slate of nominations) to Ex-Im’s board if Garrett’s nomination is not considered.
David McIntosh, President
Club for Growth
Michael A. Needham, Chief Executive Officer
Heritage Action for America
Jason Pye, Vice President of Legislative Affairs
Rick Manning, President
Americans for Limited Government
Phil Kerpen, President
David Williams, President
Taxpayers Protection Alliance
Colin A. Hanna, President
Let Freedom Ring USA
Daniel Schneider, Executive Director
American Conservative Union
Tony Perkins, President
Family Research Council