Rachael Slobodien - November 29th, 2017
Washington, DC – Today, Club for Growth President David McIntosh issued the following statement in response to talk of an automatic tax hike trigger being added to the Senate’s tax reform package:
“The idea of a ‘tax hike trigger’ should be rejected on its merits,” stated Club for Growth President David McIntosh.
“Any senator who understands basic business principles and truly cares about the deficit should understand that this trigger is an automatic tax increase and will actually harm economic growth. It will have harmful impacts on American businesses and undermine any economic growth potential in this tax reform bill because businesses will not invest due to the possibility of a higher tax rate.
“What Senators Lankford and Corker are saying here is that if the deficit gets too large, then they want to tax people more. Here’s an idea. How about cutting spending? Just yesterday Senator Lankford issued 100 wasteful examples of federal spending. But instead of cutting the programs, ironically, Senator Lankford would allow wasteful measures like them to continue to receive funding – through his automatic tax increases no less!
“If they’re truly worried about the deficit and they want to establish a trigger, then they should limit the size of government. A spending cut trigger would be a far better idea.”
Rachael Slobodien - November 27th, 2017
Washington, DC – Today, the Club for Growth PACannounced its endorsement of former Idaho State Senator Russ Fulcher for the U.S. House of Representatives. Fulcher is running for the open seat being vacated by Congressman Raul Labrador (ID-01), who is running for governor.
“Club for Growth PAC is thrilled to announce support for Russ Fulcher and his campaign for Congress,” stated Club for Growth PAC President David McIntosh.
“Russ is a conservative hero in Idaho politics. While serving as a state senator, Fulcher led the fight against the implementation of the state’s Obamacare exchange. He also was a staunch opponent of Obamacare’s Medicaid expansion and led the effort to eliminate the state’s sales tax on groceries.
“Russ has demonstrated he’s not afraid to buck the party’s establishment and will tirelessly fight for conservative economic policies to strengthen our nation.”
Rachael Slobodien - November 18th, 2017
This the House of Representatives took a significant step towards reforming our nation’s broken tax code when it passed the “Jobs and Tax Cuts Act.” Ahead of the vote, Club for Growth released a key vote alert urging members to cast a “YES” vote for the legislation. The bill passed the House by a vote of 227-205, with thirteen Republicans – mostly from high-tax states - ultimately breaking ranks and voting against final passage.
The House bill is significant because it slashes the corporate tax rate, enacts full expensing and a territorial tax system, ends the Death Tax, cuts marginal tax rates for individuals, and eliminates several loopholes and deductions, including a partial elimination of the unfair state and local tax deduction (SALT).
However, Club for Growth appropriately recognized the House’s “Jobs and Tax Cuts” Act legislation was not without faults. Now that the House has passed its bill and ahead of the Senate passage, Club for Growth strongly urges Republican leaders to fix the problems in the bill. For example, the House’s bubble rate for high-income earners should be eliminated as well as the 39.6 percent top tax rate. The conference report in the Senate must include repeal of the dreaded individual mandate. If these changes are incorporated into the final bill, passed by Congress, and signed into law by President Trump, we believe the economy will roar. Club for Growth is working unceasingly to ensure that those changes happen, and we will keep you posted as the debate continues to progress.
We are confident that these shortcomings will be addressed as the Senate continues to work on its iteration of the tax reform bill. In fact, the Senate bill is already an improvement on the House bill in several ways. For example, the Senate legislation includes a provision to repeal Obamacare’s individual mandate.
Earlier this week, Club for Growth President David McIntosh coauthored an op-ed praising the Senate for including repeal of the individual mandate in its tax legislation. As the opinion piece explained, “Given the Senate’s rules and unnecessary, self-imposed budget constraints, most improvements would require congressional tax writers to find ‘savings,’ i.e., tax increases, elsewhere in the tax code. As we have seen, those trade-offs can be painful in a town filled with corporate welfare, cronyism and self-entitlement. That is why eliminating Obamacare’s individual mandate tax penalty is such a politically advantageous option available.”
The op-ed in Real Clear Politics went on to explain additional reasons why it is advantageous for the Senate to include a repeal of the individual mandate. “First, recent polling suggests a plurality — roughly 45 percent of voters — support the Republicans’ tax reform efforts. According to a 2017 YouGov poll, nearly two-thirds of Americans want the individual mandate repealed. That number jumps to 81 percent when looking just at Trump voters. In other words, including repeal will increase the popularity of the tax package. Second, eliminating the individual mandate penalty will alter the CBO’s health insurance coverage calculation when Republicans return to repeal-and-replace next year. Remember, the CBO routinely estimated that 15+ million people would “lose” insurance coverage because the bill eliminated the individual mandate, handing the media and the left a powerful talking point against any future reform.”
While the Senate bill has many strengths, more can be done to strengthen it. For example, Senator Ron Johnson (R-WI) this week indicated he cannot support the legislation in its current form. As The Wall Street Journal reported, Senator Johnson has concerns about the treatment of pass-throughs and family-owned businesses. Senator Johnson’s hesitations are warranted, and Club for Growth also wants to make certain that tax reform includes the best treatment of pass-through businesses. In order to achieve the most pro-growth policies and unleash the greatest amount of economic growth, it is imperative Congress do as much as possible to lessen the burdens family-owned businesses and corporations face. We are confident that Senator Johnson’s concerns will be worked out and that the Senate will deliver on a pro-growth tax reform bill.
Club for Growth to House Rules Committee: President Trump Provides Solution to SALT Deduction in House Bill
Rachael Slobodien - November 14th, 2017
Washington, DC – Today, Club for Growth President David McIntosh issued the following statement as the House of Representatives begins consideration of the “Tax Cuts and Jobs” Act:
“President Trump’s tweet yesterday that the House should lower the top marginal rate solves the problem for members representing these high-tax states,” explained Club for Growth President David McIntosh.
“Club for Growth has always argued for eliminating the SALT deduction and cutting marginal tax rates for all Americans, which includes those who are most successful as well as middle-class income earners. A rate reduction to 35 percent for the highest bracket offsets the tax revenue caused from the elimination of the SALT deduction.
“Further, President Trump’s suggestion that Congress repeal the individual mandate in Obamacare provides an offset for revenue lost that fulfills the House’s self-imposed limit on tax cuts.
“Club for Growth urges the Rules Committee to amend the Tax Cut and Jobs Act to include both of the President’s suggestions. Once incorporated, the House should pass the bill and send it to the Senate for further improvements.”
GOP Must Correct At Least Four Shortcomings of the House Bill to Bring Our Nation Pro-Growth Tax Reform
Rachael Slobodien - November 07th, 2017
Washington, DC – Today, Club for Growth President David McIntosh issued the following statement as the House Ways and Means Committee continues to mark up the “Tax Cuts and Jobs” bill:
“While the corporate tax cut will lead to some increase in our nation’s GDP, the rest of the provisions on individual taxpayers fails the pro-growth test,” Club for Growth President David McIntosh stated.
“Republicans must correct at least four serious shortcomings of the House bill to follow through on campaign promises and to bring our nation closer to a tax reform proposal that is truly pro-growth.
“1: millionaires’ tax rate: House Republicans are engaging in class warfare the likes of which would make Democrats green with envy. Instead of following through with the promise of taking seven brackets and simplifying them to three, Speaker Ryan and Chairman Brady added in a fourth bracket exclusively for millionaires.
“2: 45.6 percent “bubble” phantom tax increase: As The Wall Street Journal noted, some individuals and couples could face up to 45.6 percent marginal rate on earnings between $1.2-1.6 million. That’s a real tax increase on successful people who invest and create jobs.
“3: pass throughs: Once again, Republicans fail the truth in advertising test here. At first glance, the House GOP bill looks as if it introduces a degree of tax parity for small and family-owned businesses by taxing them at 25 percent. But then there’s a catch, only the first 30 percent of their income will be taxed at the 25 percent rate, the remaining 70 percent is taxed as much as 45.6 percent. The blended, real effective marginal rate is at least 35% and can even be higher. That means no tax cut at all for most small business and family-owned companies.
“4: death tax: Instead of taking this golden opportunity to rid Americans from being taxed even after they’ve died – on assets that they already paid taxes on when living – the House Republican plan waits a full six years before repealing it. Our question is, why wait?
“All in all, this bill must be changed if Republicans intend to keep their promise of real pro-growth, job-creating tax cuts.”