Taxes

Conservative Coalition Against Gas Tax Hike

Andrew Roth - February 12th, 2018

February 12, 2018

Dear Representative:
On behalf of our organizations and the millions of Americans we represent across all 50 states, we write to express our opposition to raising the federal gas tax. Federal policy should concentrate first on the many impediments to a more efficient, effective, and user-accountable transportation network.

Raising the gas tax is a bad idea. It will make the burden of government on families and businesses heavier. A higher gas tax means higher prices not just on gas, but on goods and services throughout the economy. These costs would inevitably be passed along to consumers in the form of higher prices, resulting in a regressive tax hike on those who can least afford it.

We applaud the landmark tax reform bill recently approved by Congress and signed into law by President Trump. Millions of families and small businesses will benefit from these pro-growth tax cuts after years of slow economic growth and stagnant wages. Undermining the impact of this long overdue and badly needed tax relief by raising the federal gas tax would be counterproductive and misguided – hitting less affluent Americans and those living on fixed incomes the hardest.

Rather than seeking to increase prices at the pump in the form of a tax hike, lawmakers should first reform the way existing transportation dollars are spent.

Too often, highway funds are diverted to non-highway projects, a problem that worsens with each passing year. This non-highway spending shortchanges motorists, and undermines the user-pays principle.

In addition, labor mandates and byzantine planning and analysis requirements can needlessly delay the completion of transportation projects and contribute to increased costs. Modernizing these burdensome planning requirements and sweeping away cost-boosting labor restrictions would stretch existing dollars further.

Before asking Americans to pay more for a tank of gas, Congress should pursue common-sense reforms that properly prioritize federal transportation infrastructure needs, reduce costly and time-consuming bureaucratic hurdles, and ensure that tax dollars are spent on roads and bridges, not frittered away on unrelated pet projects, red tape and paperwork.

Sincerely,
Brent Wm. Gardner
Chief Government Affairs Officer
Americans for Prosperity

Michael A. Needham
CEO
Heritage Action for America

Grover Norquist
President
Americans for Tax Reform

David McIntosh
President
Club for Growth

Nathan Nascimento
Executive Vice President
Freedom Partners Chamber of Commerce

Mark Scribner
Senior Fellow
Competitive Enterprise Institute

Jason Pye
Vice President of Legislative Affairs
FreedomWorks

Tom Schatz
President
Citizens Against Government Waste

Pete Sepp
President
National Taxpayers Union

Phil Kerpen
President
American Commitment

Mario H. Lopez
President
Hispanic Leadership Fund

Daniel Garza
President
The Libre Initiative

Carrie L. Lukas
President
Independent Women’s Forum

Heather R. Higgins
President and CEO
Independent Women’s Voice

Harry C. Alford
President and CEO
National Black Chamber of Commerce

Jeffrey Mazella
President
Center for Individual Freedom
Donald Bryson
President
Civitas Action

David Barnes
Policy Director
Generation Opportunity

Norm Singleton
President
Campaign for Liberty

Judson Phillips
Founder
Tea Party Nation

Seton Motley
President
Less Government

Kim Crockett, Esq.
Vice President, Senior Fellow and General Counsel
Center of the American Experiment

Tom Brinkman, Jr.
Chairman
Coalition Opposed to Additional Spending and Taxes (COAST)

Matthew Kandrach
President
Consumer Action for a Strong Economy (CASE)

Katie McAulliffe
Executive Director
Digital Liberty

Brett Healy
President
John K. MacIver Institute

Sean Noble
President
American Encore

Annette Meeks
CEO
Freedom Foundation of Minnesota

Andrew F. Quinlan
President
Center for Freedom and Prosperity

Club for Growth Leads Coalition Urging Trump to End Taxation of “Phantom Income” Through Executive Order

Rachael Slobodien - January 29th, 2018

Washington, DC – Today, ahead of President Trump’s first State of the Union address, 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.

This letter is a companion letter to one Club for Growth and conservative allies sent to President Trump and Secretary Mnuchin last fall.  Below is the text of the letter along with the full list of organizations who signed it.

**

January 29, 2018

 

Dear President Trump and Secretary Mnuchin,

 

On behalf of the following organizations representing millions of American taxpayers, we congratulate your strong leadership in helping pass the Tax Cuts and Jobs Act of 2017.  It’s extremely pro-growth, delivers real tax cuts to working families, and signals to the private sector that Washington is not interested in smothering the economy through bigger government.

 

To follow up on that success, we write to strongly recommend that you use your executive power as president to 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 regular 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 $1,000 in 2008 and dutifully held it for ten years, they could now sell it for $1934.  That’s a gain of $934.  Unfortunately, the full amount would be subject to taxation.  But $168 of that $934 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 endorsed this Executive Order in 2017, but we suspended our efforts so that it did not confuse the tax reform debate.  Now that tax cuts has been successfully passed into law, we believe now is the right time to continue your successful leadership in bringing about real economic growth through additional tax cuts.  This executive order would do just that.

 

Sincerely,

 

 

David McIntosh

President

Club for Growth

 

Grover Norquist

President

Americans for Tax Reform

 

Dan Holler

Vice President

Heritage Action

 

Jason Pye

Vice President of Legislative Affairs

FreedomWorks

 

Phil Kerpen

President

American Commitment

 

Heather R. Higgins

President and CEO

Independent Women’s Voice

 

Carrie Lukas

President

Independent Women’s Forum

 

Olivia Grady

Senior Fellow

Center for Worker Freedom

 

James Martin

Founder/Chairman

60 Plus Association

 

Palmer Schoening

Chairman

Family Business Coalition

 

Karen Kerrigan

President & CEO

Small Business & Entrepreneurship Council

 

Sal J. Nuzzo

Vice President of Policy

The James Madison Institute

 

Brian Garst

Vice President

Center for Freedom and Prosperity

 

Jeffrey Mazzella

President

Center for Individual Freedom

 

Rick Manning

President

Americans for Limited Government

 

Pete Sepp

President

National Taxpayers Union

 

Larry Kudlow

Committee to Unleash Prosperity

 

David Williams

President

Taxpayers Protection Alliance

 

Chrissy Harbin

Vice President of External Affairs

Americans for Prosperity

 

Nathan Nascimento

Executive Vice President

Freedom Partners Chamber of Commerce

 

Daniel Garza

President

The LIBRE Initiative

 

David Barnes
Policy Director

Generation Opportunity

 

Daniel Schneider

Executive Director

The American Conservative Union

 

Amy Kremer

Co-Founder & Co-Chair

Women for Trump

 

Norm Singleton

President

Campaign for Liberty

Heading into 2018…

Rachael Slobodien - January 08th, 2018

Only a few days into 2018 and we’re already off to a roaring start.  This week the Dow reached and surpassed the historic mark of 25,000, but that’s only the beginning of good financial news.  The S&P 500 and Nasdaq also reached record highs.

Below we’ve compiled several highlights that demonstrate just how solid the economy is growing under President Trump and the Republican Congress.  No matter how much the mainstream media seeks to underreport it, these numbers don’t lie. 

For example, well over 100 companies have awarded employees with “Trump Bonuses” after tax reform victory.  Not only are we seeing job opportunities increasing, our economy is also witnessing the lowest level of job-layoffs since the 1990s.

It’s worth noting that this may be getting too big for even The New York Times to ignore.  Check out this headline from New Year’s Day: The Trump Effect: Business, Anticipating Less Regulation, Loosens Purse Strings.

In the same vein, CBS News recently released a report on how the tax reform legislation will likely impact different households throughout the country.  Even the CBS analysis showed that each of the three households examined would pay less in taxes as a result of the tax legislation. 

But perhaps the best news is that this is only the beginning of the great things to come as a result of lower taxes and reduced regulations under President Trump.  On the regulatory front, the Trump Administration already has done much to rein in the regulatory state.

For example, in his first year in office, President Trump has:

More is still to come.  For example, a recent analysis shows that our nation’s Gross Domestic Product (GDP) will rise to well above 5 percent!  (This is an additional 2.2 percent growth in the long run). That increase translates to roughly $3,000 per household income increase!  That’s a significant amount for families struggling to make ends meet.  And remember, this is along with increased job opportunities and private-sector bonuses.

But as Club for Growth has been quick to note before, the Tax Cuts and Jobs Act passed last December shouldn’t be viewed as the endgame – rather, it’s just the beginning.

As both the House and the Senate return to Washington next week, Club for Growth encourages Congress to seize this momentum and continue to fight for more pro-growth reforms.

Below we’ve compiled an outline of a few pro-growth starting points for this year, particularly as Congress looks to enact more reforms to grow our economy.  As Club for Growth has noted before, Congress should take up a new tax bill next year, which includes:

  • Having a real 25 percent maximum rate for businesses organized as subchapter S corps or LLCs, rather than artificial exclusions for sectors like financial services, and unfairly excluding 80 percent of business income from the pass-through rate.
  • Making permanent the temporary tax cuts for individuals.
  • Eliminating the Death Tax.
  • Repealing fully the Alternative Minimum Tax.
  • Cutting capital gains taxes to spur individual investments.
  • Repealing fully the taxes in Obamacare.

Club for Growth Sends Letter to Tax Conferees

Rachael Slobodien - December 07th, 2017

Washington, DC – Today, Club for Growth President David McIntosh sent a letter to Majority Leader McConnell, House Speaker Ryan, and members of the tax conference committee.  An excerpt of the letter is below.  The letter can be read in its entirety here.

 

“As conference discussions begin, Club for Growth wants to ensure that the most significant pro-growth provisions in the House and Senate legislation are preserved and not lost in an effort to appease special interests pleading to retain their particular tax benefit.  In other words, we want to make sure that what comes out of the conference committee is more pro-growth and not less than what went into it. 

 

Club for Growth urges the conferees not to increase any marginal tax rates.

 

  1. Stand firm and keep the corporate rate at 20 percent. 
  • We believe lowering the corporate rate to 20 percent is among the most pro-growth components in both versions of the legislation.  As the Tax Foundation has found, cutting the corporate rate from 35 percent to 20 percent will increase our nation’s GDP by 3.1 percent in the long run.  It will also increase the size of the U.S. economy by nearly 4 percent and result in 3 percent higher wages for American workers.

 

  1. Adopt at least the Senate’s top individual marginal tax rate and reject the House’s proposal.  Further reductions in the top individual rate would create even more economic growth. 
  • Lowering this rate benefits all Americans by spurring more investment and thereby creates economic growth and jobs throughout our country.  The Tax Foundation has found that lowering income tax rates by 10 percent – a similar reform to the Senate proposed rates – would further boost the economy by 1 percent. Additional reductions in income tax rates would provide even greater benefits to all Americans.

 

  1. Include the Senate’s repeal of the individual mandate.
  • This provision will allow over $300 billion in additional tax cuts, making the overall bill even more pro-growth.  This should not be a point of contention.  The Senate included the repeal of the Obamacare mandate in their version, and the House has repeatedly voted to repeal it in previous years.

 

Conference meetings inevitably require tradeoffs to rectify the differences between the legislative texts.  In making those tradeoffs, Club for Growth strongly urges conferees to stand strong and fight for the most pro-growth policies that benefit all Americans and not diminish them by giving in to class warfare or social engineering arguments.” 

 

Club for Growth Applauds Senate Passage of Tax Reform; Calls on House to Pass Senate Bill

Rachael Slobodien - December 06th, 2017

Washington, DC – Today, Club for Growth President David McIntosh issued the following statement upon the Senate’s passage of tax reform:

 

“Congratulations to the Senate for passing the “Tax Cuts and Jobs” Act. We particularly are grateful for the hard work of conservative champions who fought tirelessly to incorporate pro-growth policies in the legislation making the list of conservative victories a long one. Between repealing the individual mandate and eliminating the SALT subsidies for high-tax states, conservatives have much to celebrate.

 

Club for Growth now calls on Speaker Paul Ryan to bring the Senate version of the bill to the House floor for passage next week.  The bill should arrive on President Trump’s desk before Christmas giving the American people a well-deserved present.  If some House members have lingering concerns, Club for Growth supports efforts to take up those reforms in another tax reform bill next year.  

 

Club for Growth looks forward to the next steps as pro-growth tax reform — and the economic prosperity it unleashes — now becomes a reality for our nation.”