Top 5 Energy Regulations Trump Should Repeal

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Posted by Johnathan Sargent on Thursday, November 17th, 2016, 10:50 AM PERMALINK


A top priority for the Trump administration will be dismantling the regulatory regime left by President Obama. Over the course of his presidency, the Obama administration has issued over 20,000 new rules and regulations that have not only hurt small business, but also cost Americans over $100 billion. Some of the most harmful of these regulations are those imposed upon the energy sector, which have placed thousands of jobs in jeopardy and cost American companies and consumers billions of dollars.

President Trump will have no shortage of burdensome regulations to eliminate, but here are some of the most burdensome energy regulations that his administration should repeal: 

1. Clean Power Plan. The rule mandates a 32 percent cut in the energy sector’s carbon emissions by 2030. Currently, the fate of the rule is being discussed by the Washington D.C. Court of Appeals. If the case is still being argued by the time Trump is sworn in he could ask the Justice Department to dismiss the case. If not, Trump could have the EPA undo the regulation.

2. Waters of the U.S. Rule (WOTUS). The WOTUS rule drastically expands the EPA’s jurisdiction, making small waterways like wetlands and ponds subject to federal rules and permitting processes. This rule is also being held up in the courts. Like the Clean Power Plan, Trump could ask the courts to dismiss the case or order the EPA to dismantle the regulation.

3. Ozone Rule. This rule sets the allowable ozone level in air at 70 parts per billion, down from 75 under the Bush administration. This rule would have economically devastating impacts on local communities deemed to be out of “attainment” by the government. Like the other rules it is also being argued in court and the Trump administration could ask for the case to be dismissed or weaken the existing rule by not enforcing it.

4. Fracking Rule. This rule sets standards for well casing, transparency and wastewater storage for hydraulic fracturing, or “fracking” on federal land. It was overturned earlier this year by a federal judge, which the Obama administration is currently appealing. The Trump administration could simply drop the appeal in this scenario to undo the regulation.

5. Methane Rule. This rule was finalized recently by the Interior Department and sets new and costly regulations on energy development on federal lands. The rule would not only make recovery of affordable energy more costly, but is unnecessary and redundant as such emissions have steadily dropped in recent years thanks to advances in recovery technology. The Trump administration could also look to reverse this regulation with the help of the Republican controlled House and Senate next year.     

President Obama’s legacy is one of an increasingly burdensome regulatory regime. After 8 years it is apparent that these rules have done nothing but harm Americans and businesses across the country. Fortunately, with a Republican-controlled Congress, President Trump will have no shortage of options or support in repealing many of these regulations.

 

Photo Credit: Gage Skidmore

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High Taxes For Hard Cider

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Posted by Elise DeCristoforo on Thursday, November 17th, 2016, 9:42 AM PERMALINK


Is hard cider more like beer or champagne? What seems like a trivial question has massive financial ramifications for companies and consumers in Massachusetts.

Currently, hard cider with an alcohol by volume (ABV) content of 6% or more is taxed as a champagne or sparkling wine by Massachusetts, which levies a 70 cents per gallon excise tax on such products. The excise tax rate for champagne or sparkling wine in Massachusetts is far greater than the rate applied to beverages with an ABV of 3%-6%, which are taxed 3 cents per gallon.

Attorneys AiVi Nguyen and Matthew A. Morris explained the absurdity of Massachusetts’ current alcohol regulations in a recent blog:

“'Wines' is defined in M.G.L. Chapter 138 section 1 as ‘all fermented alcoholic beverages made from fruits, flowers, herbs or vegetables’ containing less than 24% ABV. Thus, any cider with an ABV over 6% is taxed at a rate of 70 cents per gallon – a 2,333% increase in tax for what might be a very small difference in ABV.”

House Bill 4678, introduced by Rep. Paul Tucker and Sen. Joan Lovely, would remedy this problem, by making Massachusetts’ tax applications consistent with federal definitions. The law would increase the tax threshold from 6% to 8.5% ABV.

Jessica Henry from Far from the Tree Cider, a Salem, Mass.-based craft cider producer, explains the potential impact HB 4678’s passage would have on her business:

"Changing the limit from 6 percent alcohol by weight to 8.5 percent alcohol by volume would really adjust, fairly, the tax burden on our business." 

Henry’s company sells beverages that typically range from 6.9% to 8% ABV, and under current law will pay $59,000 in excise taxes to the commonwealth for the year. Henry explains how the passage of HB 4678 would increase the job-creating capacity of Bay State employers and make them more competitive. 

"Implementing this change here would help our cider company stay competitive with states such as New York, which has also lowered its cider tax," Henry said. "Leveling the tax playing field would allow us and other cider makers to invest more in our business and in Massachusetts."

State Sen. Michael Rodrigues (D), a co-chair of the House Revenue Committee, is supportive of HB 4678, and is optimistic for the bill’s prospects. "Certainly I, and I'm assuming most members of this committee, will be supporting this bill," Rodrigues said.

Rodrigues expects the bill to advance through the legislature and to end up on Gov. Charlie Baker’s (R) desk for approval. 

Photo Credit: 
Matt Northam

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Barry Clark

The article quotes a hard cider maker, “Implementing this change here would help our cider company stay competitive with states such as New York, which has also lowered its cider tax. Leveling the tax playing field would allow us and other cider makers to invest more in our business and in Massachusetts.”

The MA booze taxes are on booze sold in the state, regardless of origin. Importers and MA makers pay the same MA tax on hard cider sold in MA. The MA taxes do not apply to booze produced in the state that is exported.

Here is a quote that the article links to, “Our cider sells like and is consumed like a beer, and not a champagne. The price point is the same as beer. We feel we should be taxed like beer. To be taxed like champagne is unfair and nonsensical.”

MA taxes beer at 10.6¢/gallon. MA taxes hard cider up to 6% alcohol at only 3¢/gallon. The cider makers want the hard cider limit increased to 8.5% alcohol for the 3¢/gallon rate. If the bill is passed, a light beer with 4.2% alcohol would be taxed at 3.5 times the rate of 8.5% alcohol hard cider.

The MA bottle deposit law applies to beer but not hard cider. The legislature should also extend the bottle deposit law to include hard cider.


ATR urges the House to oppose any new cross-border sales tax beyond Quill

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Posted by Andreas Hellmann on Wednesday, November 16th, 2016, 4:33 PM PERMALINK


In a letter from November 15th to Paul Ryan, Speaker of the House, Kevin McCarthy, House Majority Leader, Steve Scalise, House Majority Whip and Bob Goodlatte Chairman, House Judiciary Committee President of Americans for Tax Reform Grover Norquist states:

Judiciary Committee Chairman Goodlatte has been diligent in working to develop a framework for a sustainable way to handle state taxation of cross-border sales, and taxpayers appreciate his work. When compared to the onerous burdens imposed on taxpayers and businesses alike by the misnamed “Marketplace Fairness Act” and its successor bills, positive progress has been made mitigating the ability of states to send regulations across their borders, and curtailing the ability of revenue departments to burden businesses outside their jurisdictions with audits and litigation. But this project is not yet ready to win the support of taxpayers, and is so far still short of its goals in important ways.

 

Because of substantive problems still remaining and, importantly, an improved environment for taxpayers in the next Congress, ATR strongly urges the House of Representatives to resist calls to consider any new cross-border sales tax measure that goes beyond confirming the existing Quill framework during the lame duck session.

 

Anyone concerned about protecting taxpayers or their constitutional rights should immediately rule out cutting deals with Harry Reid and President Obama on any sales tax legislation. We should instead be strictly focused solely on necessary funding of the government and preventing any "midnight" regulations from the Administration.

 

When the time is right, we still have some work to do. To be worthy of taxpayers’ consideration any remote sales tax legislation needs to allow taxation to take into account the different benefits and burdens applying to local outlets and online-only retailers. It should stop the state push for economic nexus and instead safeguard the physical nexus standard. It must preserve tax competition between the states on both rates and base. It must affect controls on state taxation authority such as BATSA. It must not implement an MFA-style regime in any retail sector.

 

There are currently no proposals before Congress that meet taxpayers’ requirements, with the exception of Congressman Sensenbrenner’s “No Regulation without Representation” bill, H.R. 5893. A vote in this Congress on anything other than H.R. 5893 would be a disservice of taxpayers, and ATR urges Congressional Leadership to resist the pressure from those businesses that would stand to benefit from doing so.

 

Taxpayers look forward to working with the Committee, the new Congress and President Trump to ensure that any future cross-border sales tax regime maintains the physical nexus standard, constitutional protections and tax and regulatory competition.

Onward,

Grover Norquist

Photo Credit: 
Flickr: Misha Popovikj

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Koskinen’s IRS At It Again: Tea Party Groups Denied Tax-exempt Status After Nearly 7 Years

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Posted by Laurens ten Cate on Wednesday, November 16th, 2016, 4:32 PM PERMALINK


The Albuquerque Tea Party has received a decision on their request for tax-exempt status. It came just a little later than expected. How much later? Almost seven years after applying the tea party group got denied tax-exempt status.

Even now that decision came with the IRS dragging it’s heels. The IRS had to be forced to deal with three Tea Party groups that were very much delayed under orders of a federal judge. Only one of the three groups got approved. The other two – including the Albuquerque group – got denied.

The groups have the option to appeal the decision but the group’s chief counsel, Jay Sekulow, said:  “It is clear that we still have an IRS that is corrupt and incapable of self-correction,”

The only group that was approved is the Michigan-based Unite in Action. They applied for tax-exempt status more than six years ago. Next to the Albuquerque group, Tri City Tea Party from Washington State was also denied in their request.

Even though the Michigan-based group was finally approved, the more than six year waiting period is gross overreach of IRS power and a clear-as-day example of the targeting of conservative groups by the agency.

Recently IRS commissioner John Koskinen appeared in front of the House Judiciary Committee to face impeachment charges leveled by congress due to his role in the Lois Lerner targeting scandal. Under Lois Lerner’s leadership the IRS only approved one conservative group non-profit status in the three year period of 2009 to 2012.

The finishing of these three applications after a staggering seven years doesn’t mean the end to this controversy though. Another group, the Texas Patriots Tea Party, still hasn’t received a decision on their application. They are part of a class-action lawsuit against the IRS in Ohio in which last week, on November 6, a judge granted a preliminary injunction against the IRS on strong evidence of discrimination based on the conservative background of the groups.

This case is of extra interest because of the fact that the discrimination happened after May 2012 when, according to the Treasury Inspector General for Tax Administration’s report, the IRS changed their sorting system for political cases.

The filed injunction will force the IRS to deal with the application like they would with any other but one can’t help but imagine this is nigh impossible after years of consistent discrimination against conservative groups.

Regardless of what happens, a federal agency delaying an application for almost seven years before denying it is unheard of and completely unacceptable. The IRS needs a complete overhaul to get rid of the anti-conservative bias that has infested the agency.

Photo Credit: 
saturnism, http://bit.ly/2fYpSfW

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Congress Must Repeal or Restrain Obamacare's CMMI

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Posted by Alexander Hendrie on Wednesday, November 16th, 2016, 10:00 AM PERMALINK


When it was passed into law six years ago, Obamacare created the Centers for Medicare and Medicaid Innovation (CMMI) and tasked the agency with conducting demonstrations over new health care delivery and payment models in Medicare, Medicaid, and the Children’s Health Insurance Program with the intent of reducing healthcare costs. 

While CMMI tests are supposed to increase the efficiency of healthcare programs, the agency has pushed tests with little evidence they will result in savings, while strong-arming providers into participating. At the same time, the Congressional Budget Office is utilizing unsuitable scorekeeping over CMMI tests, which has limited the ability of Congress to conduct routine oversight.

In a letter to lawmakers, a coalition of conservative groups, including ATR urged Congress to prioritize restraining or repealing this unaccountable agency next year. The letter can be found below or here.

Dear Member of Congress:

As policymakers wrap up business this year as well as prepare for a new Congress and administration, repealing and replacing Obamacare is at the top of the agenda. There are dozens of complex policy issues surrounding health care reform. One standout that urgently needs scrutiny is the Center for Medicare and Medicaid Innovation (CMMI.)

CMMI was created by Obamacare in order to facilitate demonstration projects for payments and services within those programs. Unfortunately, the outgoing Obama Administration chose to engage in executive overreach on several CMMI initiatives by making them involuntary, nationwide policy changes. Perhaps the most alarming example so far is the Medicare Part B demonstration project, which impacts cancer patients and doctors in 49 states. 

Another reason to repeal CMMI, or at least to construct guardrails that can curb abusive measures like the Part B Demo, is the way that the Congressional Budget Office has scored the agency's activities. CBO thinks that CMMI’s unelected bureaucrats will save tens of billions of dollars from Medicare and Medicaid, but if the people’s elected representatives want to set policy instead, it will "cost" taxpayer dollars. This is not only bad scoring, it's an inappropriate weakening of Congress' right to make entitlement policy. Any CMMI changes short of repeal should correct this grave scorekeeping error, before it further upsets the balance of power in the policymaking process.

Sincerely,

Grover Norquist
President, Americans for Tax Reform

Tom Schatz
President, Council for Citizens Against Government Waste

Pete Sepp
President, National Taxpayers Union

Photo Credit: 
https://www.flickr.com/photos/sandiandsteve/

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FTC Contact Lens Rule Changes Protect Free Market Competition

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Posted by Alexander Hendrie on Wednesday, November 16th, 2016, 9:00 AM PERMALINK


After 14 months of review, the Federal Trade Commission (FTC) issued proposed changes to the contact lens rule that will protect a free and open market over the purchase of contact lenses. In addition, they preserve protections that allow consumers the freedom to purchase where they choose, free from government interference. 

These proposed changes build on the success of the 2003 Fairness to Contact Lens Consumers Act (FCLCA) and will ensure that the free market is allowed to thrive. Given the proven success of FCLCA, federal lawmakers should be sure not to reverse this working system based on misleading rhetoric.

It is a basic principle of free markets that consumers are free to make decisions without government control over prices and purchasing choices. Existing law works and should only be tweaked as the FTC review calls for, not blown up and replaced with a radically different system as legislation in Congress would do.

Proposed Changes Ensure Consumers and Free Commerce Remain Protected

Prior to passage of FCLCA, optometrists could make it more difficult for their patients to purchase from a third party. These concerns were far from hypothetical – there were many well documented cases of bad actors implicitly or directly blocking the free choice of consumers.

To be clear, there should be no restrictions on professionals selling contact lens, nor should there be any restriction on consumers safely purchasing from a third party.  

FCLCA fixed existing flaws in law by allowing consumers the right to “passive verification” over contact lens prescriptions, a change that meant patients would have access to a written prescription, so they could shop where they wanted.

The proposed FTC rule changes build on the success of FCLCA by streamlining prescription verification in a way that balances patient access and public safety in the most compliant friendly manner.

The rule calls for additional record keeping in the form of a “receipt of contact lens prescription” that enshrines the right of consumers to freely purchase from either their optometrist or a third party provider.

Consumers will also have increased flexibility to have their prescriptions verified through phone, fax, or online, a change that makes sense given the ease of communication today.

Congress Should Reject Misleadingly Named “Contact Lens Consumer Health Protection Act”

While the results of the FTC’s review moves federal law in the right direction, legislation in Congress would undo this based on vague and unproven “safety concerns.”

The Contact Lens Consumer Health Protection Act (S. 2777/H.R. 6157) would revert back to the system of “direct verification,” meaning that an optometrist must prescribe over the phone or in person. A coalition of ten conservative, free market groups, including ATR recently called on lawmakers to reject this protectionist legislation. 

While the proposed change may sound innocuous, it would again open the door to bad actors denying patients the freedom to purchase wherever they wish.

Supporters of the legislation claim that it targets deceptive sales of contact lenses and ensures safety for contact lens consumers. But as noted by the FTC’s review of federal law, there is no evidence this is the case. Congress has already considered the issues of contact lens health use and they were incorporated in FCLCA upon passage more than a decade ago.

In actuality, the currently proposed legislation squeezes consumers to make it difficult, even impossible to purchase lenses from any non-optometrist third party.

Congress should not move to constrain the free market and limit consumer choice, especially given the findings of the evidence based review conducted by the FTC.   

 

Photo Credit: 
https://www.flickr.com/photos/maikelnai/

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ATR Opposes Lifting Earmark Ban

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Posted by ATR on Tuesday, November 15th, 2016, 2:00 PM PERMALINK


Americans for Tax Reform opposes the resurrection of earmarks. The following statement can be attributed to ATR president Grover Norquist:

“Earmarks are the ‘broken windows’ of federal overspending, the currency of congressional corruption, and the price of bad votes for more spending.”

Photo Credit: 
Pierre-Selim

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Show Notes: What the Election Results Mean for American Taxpayers

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Posted by Alec DiFruscia on Monday, November 14th, 2016, 3:41 PM PERMALINK


On Election Day, voters made a choice: they chose freedom. Republicans across the country swept into office. The GOP now holds the Presidency, Senate, House, 33 governorships, and 2/3 of State Legislatures. Congress can finally repeal Obamacare and pass tax reform, two items that Speaker Paul Ryan, Sen. Mitch McConnell and President Trump all agree on.

The threats to the Second Amendment, the sharing economy, the Supreme Court, and vaping are gone, and now it’s time for a bold conservative agenda for the next four years. 

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AmandaTrebiano

Hold down the CTRL key and push the PLUS + key and it enlarges the page by zoom, the minus/hyphen - key shrinks it back down.

jaeger8383

It would be really nice if we could actually read more than half the text on that map.


Good Riddance to Obamacare’s Tax Hikes

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Posted by Alexander Hendrie, John Kartch on Monday, November 14th, 2016, 10:54 AM PERMALINK


When it was signed into law six years ago, Obamacare imposed more than $1 trillion in tax hikes on the American people over a ten year period. There are seven Obamacare tax increases that directly hit Americans making less than $250,000, a violation of President Obama’s “firm pledge” not to raise any form of tax on such households.

Obama broke his promise to the American people. Paul Ryan, Mitch McConnell, and Donald Trump can now abolish these taxes.  

The list of tax hikes is below -- the first seven directly hit Americans making less than $250,000:

Individual Mandate Non-Compliance Tax: Anyone not buying “qualifying” health insurance – as defined by President Obama’s Department of Health and Human Services -- must pay an income surtax to the IRS. In 2014, close to 7.5 million households paid this tax. Most make less than $250,000. The Obama administration uses the Orwellian phrase “shared responsibility payment” to describe this tax.   

Starting this year, the tax was a minimum of $695 for individuals, while families of four had to pay a minimum of $2,085.

 

Households w/ 1 Adult

 

Households w/ 2 Adults

Households w/ 2 Adults & 2 children

 

2.5% AGI/$695

 

2.5% AGI/$1390

2.5% AGI/$2085

A recent analysis by the Congressional Budget Office (CBO) found that repealing this tax would decrease spending by $311 billion over ten years.

Medicine Cabinet Tax on HSAs and FSAs: Since 2011 millions of Americans are no longer able to purchase over-the-counter medicines using pre-tax Flexible Spending Accounts or Health Savings Accounts dollars. Examples include cold, cough, and flu medicine, menstrual cramp relief medication, allergy medicines, and dozens of other common medicine cabinet health items. This tax costs FSA and HSA users $6.7 billion over ten years.

Flexible Spending Account Tax: The 30 - 35 million Americans who use a pre-tax Flexible Spending Account (FSA) at work to pay for their family’s basic medical needs face an Obamacare-imposed cap of $2,500. This tax will hit Americans $32 billion over the next ten years.

Before Obamacare, the accounts were unlimited under federal law, though employers were allowed to set a cap. Now, parents looking to sock away extra money to pay for braces find themselves quickly hitting this new cap, meaning they have to pony up some or all of the cost with after-tax dollars. Needless to say, this tax especially impacts middle class families.

There is one group of FSA owners for whom this new cap is particularly cruel and onerous: parents of special needs children.  Families with special needs children often use FSAs to pay for special needs education. Tuition rates at special needs schools can run thousands of dollars per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education. This Obamacare tax increase limits the options available to these families.

Chronic Care Tax: This income tax increase directly targets middle class Americans with high medical bills. The tax hits 10 million households every year. Before Obamacare, Americans facing high medical expenses were allowed an income tax deduction to the extent that those expenses exceeded 7.5 percent of adjusted gross income (AGI). Obamacare now imposes a threshold of 10 percent of AGI. Therefore, Obamacare not only makes it more difficult to claim this deduction, it widens the net of taxable income. This income tax increase will cost Americans $40 billion over the next ten years.

According to the IRS, approximately 10 million families took advantage of this tax deduction each year before Obamacare. Almost all were middle class: The average taxpayer claiming this deduction earned just over $53,000 annually in 2010. ATR estimates that the average income tax increase for the average family claiming this tax benefit is about $200 - $400 per year.

HSA Withdrawal Tax Hike: This provision increases the tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.

Ten Percent Excise Tax on Indoor Tanning: The Obamacare 10 percent tanning tax has wiped out an estimated 10,000 tanning salons, many owned by women. This $800 million Obamacare tax increase was the first to go into effect (July 2010). This petty, burdensome, nanny-state tax affects both the business owner and the end user. Industry estimates show that 30 million Americans visit an indoor tanning facility in a given year, and over 50 percent of salon owners are women. There is no exception granted for those making less than $250,000 meaning it is yet another tax that violates Obama’s “firm pledge” not to raise “any form” of tax on Americans making less than this amount.

Employer Mandate Tax: This provision forces employers to pay a $2,000 tax per full time employee if they do not offer “qualifying” – as defined by the government -- health coverage, and at least one employee qualifies for a health tax credit. According to the Congressional Budget Office, the Employer Mandate Tax raises taxes on businesses by $166.9 billion over the ten years.

Surtax on Investment Income: Obamacare created a new, 3.8 percent surtax on investment income earned in households making at least $250,000 ($200,000 for singles). This created a new top capital gains tax rate of 23.8% and increased taxes by $222.8 billion over ten years.

The capital gains tax hits income that has already been subjected to individual income taxes and is then reinvested in assets that spur new jobs, higher wages, and increased economic growth. Much of the “gains” associated with the capital gains tax is due to inflation and studies have shown that even supposedly modest increases in the capital gains tax have strong negative economic effects.

Payroll Tax Hike: Obamacare imposes an additional 0.9 percent payroll tax on individuals making $200,000 or couples making more than $250,000. This tax increase costs Americans $123 billion over ten years.

“Cadillac Tax” -- Excise Tax on Comprehensive Health Insurance Plans: In 2020, a new 40 percent excise tax on employer provided health insurance plans is scheduled to kick in, on plans exceeding $10,200 for individuals and $27,500 for families. According to research by the Kaiser Family Foundation, the Cadillac tax will hit 26 percent of employer provided plans and 42 percent of employer provided plans by 2028. Over time, this will decrease care and increase costs for millions of American families across the country.

Tax on Medical Device Manufacturers: This law imposes a new 2.3% excise tax on all sales of medical devices. The tax applies even if the company has no profits in a given year. The tax was recently paused for tax years 2016 and 2017. It will cost Americans $20 billion by 2025.

Tax on Prescription Medicine: Obamacare imposed a tax on the producers of prescription medicine based on relative share of sales. This is a $29.6 billion tax hike over the next ten years.

Tax on Health Insurers: Annual tax on health insurance providers imposed relative to health insurance premiums collected that year. This is a $130 billion tax hike over the next ten years.

Codification of the “economic substance doctrine”: This provision allows the IRS to disallow completely legal tax deductions and other legal tax-minimizing plans just because the IRS deems that the action lacks “substance” and is merely intended to reduce taxes owed. This costs taxpayers $5.8 billion over ten years.

Elimination of Deduction for Retiree Prescription Drug Coverage: The elimination of this deduction is a $1.8 billion tax hike over ten years.

$500,000 Annual Executive Compensation Limit for Health Insurance Executives: This deduction limitation is a $600 million tax hike over ten years.

Photo Credit: 
Kevin Spencer, http://bit.ly/2fr8ZJM

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Wri8terofWrongs

Trump just better sign it.


Map Shows Depth of GOP Dominance in the States


Posted by ATR on Friday, November 11th, 2016, 1:23 PM PERMALINK


-In 2017, Republicans will have full control of the legislative and executive branch in 26 states.

-In 2017, Democrats will have full control of the legislative and executive branch in 4 states.

Click here for a full size version of the map below.

Population of GOP-controlled states: 162,286,110

Population of Dem-controlled states: 45,661,696

 

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