Taxes

Tax Reform 2.0 and the Path to GOP Victory in 2018

CFG PAC Updates - September 18th, 2018

All the negative media drumbeat is taking its toll. The Club for Growth recently conducted a poll of 40 swing House districts. Unfortunately, the poll shows that Republicans are 12 percent less interested in voting than Democrats in these critical swing races. Democrats are simply more engaged and enthusiastic about the November elections. This is a big problem, because midterm elections often come down to turnout.

Now, the good news: Our poll shows that if Republicans run on conservative messages – they can win and keep the majority. In particular, voters in these swing districts are much more likely to show up at the polls and vote Republican if the candidate supports a second tax reform package. Tax cuts and continued economic growth are powerful issues not only to persuade undecided voters, but also to motivate Republican voters to show up and vote.

Congressman Kevin Brady (TX-08), Chairman of the House Ways and Means Committee, recently introduced new tax reform legislation that should energize fiscally conservative voters and encourage them to make their voices heard at the polls.

Chairman Brady’s tax reform 2.0 includes three major pillars:

1)     Make the 2017 individual tax cuts permanent. The individual tax cuts in the 2017 legislation expire in 2025, in contrast to the corporate tax cuts which are permanent. Families and small businesses need the same kind of financial security and certainty that Congress gave corporations.

2)     Create Universal Savings Accounts. Universal Savings Accounts allow individuals to save money in special accounts that grow tax-free and are easier to access than 401ks. This is a pro-growth idea that will encourage individuals to save for the future while protecting their hard-earned money from greedy politicians.

3)     Provide incentives for business innovation. The proposal includes reforms that will encourage entrepreneurship, like expanded expensing for new businesses and making the Death Tax permanent.

Chairman Brady hopes to move his legislation through committee and bring the bill to a full vote in the House over the next few weeks, and we hope the Senate will do the same.

While it is unlikely the legislation will pass the Senate (they are busy confirming Judge Kavanaugh) before the election, forcing the vote is an important opportunity to remind the American people exactly what’s at stake in this election. Tax reform 2.0 also gives voters a tangible goal to be excited about.

For many individuals and families, these tax reforms will make a tremendous impact on their daily lives and allow them to take advantage of the roaring economy. When they go to the voting booth, the real possibility of hundreds or even thousands of more dollars in their pockets will be a fresh reminder of why it’s important to vote for pro-growth conservatives. And when they see Democratic politicians and candidates opposing these reforms, and running on Bernie Sanders’ socialism – free college and healthcare for all! – just a few weeks before Election Day, the choice will be crystal clear.

The Club for Growth will continue to champion these pro-growth policies.

Paid for by Club for Growth PAC and not authorized by any candidate or candidate’s committee.

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.

 

 

 

CFG President David McIntosh talks Tariffs and Tax Reform on CNBC’s Power Hour

Rachael Slobodien - July 24th, 2018

Club for Growth President David McIntosh appeared on CNBC’s Power Hour to discuss the negative impact tariffs have had on the economy and the dangers of President Trump continuing a trade war with China. He also discussed his excitement about some upcoming provisions in Tax Reform 2.0 that will provide for sustained and improved economic growth.

Conservative Coalition Urges Support for Scalise/McKinley Anti-Carbon Tax Resolution

Andrew Roth - July 18th, 2018

41 Conservative Groups Urge Support for Scalise/McKinley Anti-Carbon Tax Resolution

 

July 17, 2018

Dear Members of Congress:

The undersigned organizations urge you to vote for H.Con.Res 119, introduced by Majority Whip Steve Scalise (R-La.) and Congressman David McKinley (R-W.V.), which expresses the sense of the Congress that a carbon tax would be detrimental to the U.S. economy.

We oppose any carbon tax. We oppose a carbon tax because it would lead to less income and fewer jobs for American families.

For example, a 2014 Heritage Foundation report found that a $37 per ton carbon tax would lead to a loss of more than $2.5 trillion in aggregate gross domestic product by 2030. That is more than $21,000 in income loss per family.

In addition, a carbon tax would cost over 500,000 jobs in manufacturing and more than one million jobs by 2030. According to a 2013 CBO report, a carbon tax is highly regressive.

After President Trump signed the Tax Cuts and Jobs Act into law on December 22, 2017, more than 90 percent of wage earners have had higher take-home pay.

At least 600 companies of all sizes have already announced special bonuses, pay raises, 401(k) match increases, tuition assistance, new training programs and other benefits for workers.

Thanks to the GOP tax cuts, utility companies are lowering rates, which means lower bills for consumers.

A carbon tax would reverse many of these successes.

We support the House Concurrent Resolution in opposition to a job-killing carbon tax and urge members to vote for this resolution.

Sincerely,

  • Grover Norquist | President, Americans for Tax Reform
  • James L. Martin, Founder/Chairman | 60 Plus Association
  • Saulius “Saul” Anuzis, President | 60 Plus Association
  • Phil Kerpen | President, American Commitment
  • Matt Schlapp | Chairman, American Conservative Unioon
  • Tom Pyle| President, American Energy Alliance
  • Brent Wm. Gardner | Chief Government Affairs Officer, Americans for Prosperity
  • Lisa B. Nelson | CEO, ALEC Action
  • Norm Singleton | President, Campaign for Liberty
  • Andrew F. Quinlan | President, Center for Freedom and Prosperity
  • Jeffrey Mazzella | President, Center for Individual Freedom
  • Olivia Grady| Senior Fellow, Center for Worker Freedom
  • David McIntosh | President, Club for Growth
  • Kent Lassman | President, Competitive Enterprise Institute
  • Matthew Kandrach | President, Consumer Action for a Strong Economy
  • Thomas Schatz | President, Council for Citizens Against Government Waste
  • Katie McAuliffe | Executive Director, Digital Liberty
  • Craig Richardson | President, Energy & Environmental Legal Institute
  • Alex Ayers | Executive Director, Family Business for Affordable Energy
  • Matt Kiibbe | President, Free the People
  • Annette Meeks | CEO, Freedom Foundation of Minnesota
  • Jason Pye | Vice President of Legislative Affairs, FreedomWorks
  • George Landrith | President, Frontiers of Freedom
  • Tim Huelskamp PhD |President and CEO, The Heartland Institute
  • Mario H. Lopez |President, Hispanic Leadership Fund
  • Amy Oliver Cooke | Executive Vice President, Independence Institute
  • Carrie L. Lukas | President, Independent Women’s Forum
  • Heather R. Higgins | CEO, Independent Women’s Voice
  • Sal J. Nuzzo | Vice President of Policy, The James Madison Institute
  • Becki Gray | Senior Vice President, John Locke Foundation
  • Seton Motley | President, Less Government
  • Matthew Gagnon | Chief Executive Officer, Maine Heritage Policy Center
  • Brett Healy | President, The MacIver Institute for Public Policy
  • Daniel J. Erspamer | CEO, Pelican Institute for Public Policy
  • Lorenzo Montanari | Executive Director, Property Rights Aliance
  • Mike Stenhouse | CEO, Rhode Island Center for Freedom and Prosperity
  • Paul Gessing | President, Rio Grande Foundation
  • David Williams | President, Taxpayers Protection Alliance
  • Judson Phillips | Founder, Tea Party Nation
  • Michael W. Thompson | President, Thomas Jefferson Institute for Public Policy
  • Amy Kremer | Co-Chair, Women for Trump

Becky Norton Dunlop | Former Secretary of Natural Resources, Commonwealth of Virginia

 

 

Rep. Ted Budd (@RepTedBudd) on how tax reform is helping in NC-13

Stacy French - June 29th, 2018