Tax Reform 2.0 and the Path to GOP Victory in 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.