Club for Growth Salutes Camp Tax Reform Plan

Washington, DC – Today, the Club for Growth issued the following statement on House Ways and Means Chairman Dave Camp’s proposal for tax reform:

“While we don’t agree with everything in this plan, we strongly support the attempt by Chairman Camp to put together a pro-growth plan for tax reform, and there is much to like in his proposal,” said Club for Growth President Chris Chocola. “This plan will broaden the base while at the same time lowering marginal income tax rates, and it will save Americans billions in lost productivity spent on complying with the current behemoth. We particularly applaud Chairman Camp’s willingness to take on the special interests that predictably screamed bloody murder as soon as he put out his blueprint. This plan takes on the big corporations that for too long have seen the Republican Party as nothing more than a rubber-stamp for crony capitalism. It sends the message that some Republicans believe in liberty and economic freedom for all Americans, not just those that can hire a well-connected lobbyist. The elimination of most or all market-distorting energy subsidies, while at the same time lowering the corporate tax rate to 25%, is a particularly laudatory move.”

“At the same time, there are also some things within Chairman Camp’s plan that we do not support, and two in particular we strongly oppose,"continued Chocola. "The first is the treatment of capital gains as ordinary income. While some will point to the large exclusion of 40%, this change would harm investment and provide a disincentive for capital formation, along with setting a horrible precedent for future drafts of tax reform. Capital gains are not ordinary income. Instead, reformers should use the savings from further eliminating deductions and loopholes to completely eliminate taxes on investment, which is already taxed once at the corporate level. The second is the idea to earmark revenue raised from tax reform to the highway trust fund. The words ‘highway trust fund’ have no place in a plan for tax reform. Instead of continuing the failed system of a federal highway system run by government central planners, most or all of the gas tax should be devolved back to the states, who are in a far better position to choose whether or not to fund their infrastructure priorities than bureaucrats and politicians in Washington.”

“We would welcome an opportunity to work with leaders in both parties to improve this plan and increase its potentially huge pro-growth effects. The new revenue generated by a such a plan would be perfect for a down-payment on the massive national debt that threatens our long-term economic security. Instead of running from Chariman Camp’s plan, as many in both parties are doing, we see potential for future legislation that could earn bi-partisan support and a full-throated endorsement from the Club for Growth,” concluded Chocola.