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).
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.”
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 05th, 2017
By David McIntosh
When the President-elect takes to Twitter to threaten a major American company with a “big border tax,” as he did again on Tuesday, Americans are the real losers. First, it is working families who would pay the Big Tax. Second, the fact that the future leader of the free world is signaling out a private employer for a campaign of berating criticism means that everyone is in jeopardy.
American companies already face the highest corporate tax rate in the industrialized world at 35%. Forty-four states levy an additional corporate income tax. Those high taxes are passed along to consumers as the price of doing business.
If the President-elect follows through on his threats, those costs will soar even higher. In fact, here’s exactly what happens when Washington imposes tariffs on imports coming into the country:
1. The price of the imported product rises. A tariff is a hidden tax that’s passed along to buyers. Tariffs are often in double digits so they hurt everyone from consumers buying new electronic gadgets to businesses that are importing raw materials for products finished here.
Doug Sachtleben - December 05th, 2016
“Tax cuts and deregulation will make the American economy great again, but tariffs and trade wars will make it tank again.”
Washington, DC – Club for Growth president David McIntosh released the following statement in response to published reports that “House Majority Leader Kevin McCarthy refused to back President-elect Donald Trump’s push for a 35-percent tariff on companies that move operations abroad…”:
“Tax cuts and deregulation will make the American economy great again, but tariffs and trade wars will make it tank again,” said Club for Growth president David McIntosh. “The president-elect is spot on when he calls for cutting taxes and federal regulations, but 35-percent tariffs would be devastating to consumers and businesses. The Majority Leader is right to caution against protectionism and to urge a robust debate on free markets and trade.”