Regulation

Indexing Capital Gains to Inflation: A Matter of Fairness

Mason Thibault - July 31st, 2018

The Club for Growth applauds Secretary of the Treasury Mnuchin for his recent statements regarding the indexing of capital gains to inflation. There is a current gross  injustice  that is currently included in the computation of capital gains. As an example, if someone saving for retirement purchased an S&P index fund for $1000 in 1998 and dutifully held it for 20 years, they could now sell it for $2513. That’s a gain of $1513. Unfortunately, the full amount would be subject to taxation. But $570 of that $1513 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.

For much the same reason that income tax brackets were indexed to inflation over 30 years ago, Club for Growth  believes that it is only a matter of fairness to do the same for capital gains. By taking action to index capital gains to inflation, 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  workers new to the marketplace 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.

As an organization that is unequivocally committed to Pro-Growth policy that will improve economic growth, indexing capital gains to inflation can help serve as a “down payment” that will help ignite the broader conversation about tax reform.

 

 

 

Club for Growth Applauds SCOTUS Decision Affirming Individual’s Right to Keep What He Earns

Rachael Slobodien - June 27th, 2018

Today, Club for Growth President David McIntosh issued the following statement after the Supreme Court issued its ruling in Janus v. American Federation of State, County, and Municipal Employees, which overturned a prior case that allowed public-sector unions to charge non-union members “agency fees.”

“Today’s decision is a victory for American workers and our natural right to keep what we earn,” stated Club for Growth President David McIntosh.  “As a result of the Supreme Court’s ruling, the state will no longer be able to take money from a worker’s paycheck for political organizations without the individual’s consent.

“For far too long, unions have forced workers like Janus to subsidize far-left political activities with which he disagreed.  The ruling today puts an end to that corrupt, tyrannical practice and reaffirms one of the core tenets of our democratic system.”

Key Vote Alert – NDAA Amendments

Andrew Roth - May 23rd, 2018

KEY VOTE ALERT

NDAA Amendments (HR 5515)

The Club for Growth does not take a position on final passage of the National Defense Authorization Act of 2019. However, there are a few amendments that have a material influence on economic policy that the Club will score. These amendments will be voted on this week. The votes will be included in the Club’s 2018 congressional scorecard.

YES on King #92 – This amendment would ensure that no funds are authorized to enforce Davis-Bacon wage requirements.

NO on McKinley #422 – This amendment would require 100% domestic sourcing for “dinnerware” within the Department of Defense. It is essentially a protectionist earmark. It is meant to exclude foreign competition while favoring a specific industry. The government should not pick winners and losers.

NO on Tenney #380 – This amendment is similar to McKinley #422, but it applies to stainless steel flatware.

Our Congressional Scorecard for the 115th Congress provides a comprehensive rating of how well or how poorly each member of Congress supports pro-growth, free-market policies and will be distributed to our members and to the public.

Key Vote Alert – Scoring the Farm Bill + Amendments

Andrew Roth - May 17th, 2018

KEY VOTE ALERT

The Farm Bill (HR 2) + Amendments

The Club for Growth opposes the Agriculture and Nutrition Act of 2018 (HR 2), and we urge all House members to oppose it. A vote on final passage is expected this week. The vote will be included in the Club’s 2018 congressional scorecard.

Every five years or so, we’re reminded of the GOP’s rank hypocrisy on this issue. The party claims to be for free markets, but then they coddle up to special interests by handing out subsidies, price controls, and unfair trade practices.

Conservatives fought hard during the last farm bill debate to break up the unholy marriage of agricultural subsidy programs and the food stamp program. Yet this bill maintains that union as if our previous efforts never happened. On top of that, this bill doesn’t make any meaningful reforms to farm subsidies. And the savings from the modest reforms to the food stamps program are plowed back into the bill in other areas, resulting in no savings at all.

In addition to scoring the overall bill, the Club for Growth will score the following amendments to HR 2. Only if ALL of them successfully pass will we lift our opposition to the overall bill.

YES on Biggs #10 – this repeals several bioenergy programs established in the 2002 farm bill.

YES on Banks Amendment #31 – this repeals the EPA’s Clean Water Rule, which was unilaterally imposed during the last administration.

YES on Foxx Amendment #32 – this reforms the communist-styled sugar program by ending production quotas and the costly sugar-to-ethanol boondoggle.

YES on McClintock Amendment #93 – this phases out all agricultural subsidies by the year 2029.

Our Congressional Scorecard for the 115th Congress provides a comprehensive rating of how well or how poorly each member of Congress supports pro-growth, free-market policies and will be distributed to our members and to the public.

Club for Growth Applauds Senate Vote to Roll Back Obama-Era Auto-Lending Regulation

Rachael Slobodien - April 18th, 2018

Today, Club for Growth President David McIntosh issued the following statement after the U.S. Senate voted to disapprove of a Consumer Financial Protection Bureau (CFPB) rule on indirect auto lending.  At the request of Senator Toomey, the Government Accountability Office recently confirmed the Club’s position that the Obama-era interagency guidance is akin to formal rule-making authority.  Club for Growth has long been a proponent of Congress aggressively using the Congressional Review Act to its full extent, including to repeal Obama-era interagency guidances.  As a Congressman, Club for Growth President David McIntosh was the lead author of the CRA when it passed in 1996.

“Club for Growth applauds Senator Pat Toomey’s work to rein in the harmful legacy of the Obama Administration’s regulatory state,” stated Club for Growth President David McIntosh.

“Today’s Congressional Review Act vote of disapproval corrects an egregious overreaching by the CFPB in the area of auto-lending.  This effort adds a significant notch to the deregulatory efforts of the Republican Congress and Trump Administration.  Club for Growth urges the Senate and House to continue to bring up measures to roll back other onerous regulations and guidances that were so pervasive in the Obama Administration.”

 

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