Bernie's Tax Plan Will Eliminate 6 Million Jobs

Share on Facebook
Tweet this Story
Pin this Image

Posted by James Morrone on Thursday, February 4th, 2016, 1:59 PM PERMALINK


As if anyone expected something different, the millenial backed Sanders’ tax plan will cost the economy at least 6 million jobs.  The increase in taxes, which would slam over 74 percent of the population, will slash economic growth and production in the hopes of financing his single-payer healthcare system.  The ideological attack on business through taxes will do nothing but harm the nation, in both the short and long run. 

When his tax plan was originally released, it was clear it was going to be bad for the economy, but the losses will truly make us all “Feel the Bern”.  The first big hit would be on GDP growth, which is an integral part to American job creation and income growth.  The figures, according to Investors Business Daily, show that GDP growth will be cut by 9.5 percent, shrinking the amount of available jobs for American workers.  The plan will also have a negative effect on stocks as well.  Capital stocks will be reduced by 18.6 percent, allowing for less capital investment in companies, which means less growth.

It was always assumed that the burden of the 6.2 percent payroll tax would be put onto the employee, but the impact the figures from The Tax Foundation  show is far worse than anticipated.  We currently live in a time of stagnant wages and a lack of availability of full-time work, there is no reason to amplify this even more.   To have the wage rate decrease 4.3 percent over ten years is simply unbearable and irresponsible for any leader trying to revive a great nation.

It is absurd to think that anyone would fall for such a blatant attempt to hurt the free market and increase dependence on the government.  Whether it is caused by the allure of “free” services or a sense of entitlement that some may hold, forsaking the ideals of the nation will only hurt us.  The loss of so many jobs and decrease in the economic growth will only hurt these ideals, and force many to turn to the ever growing government to provide.  The founders must be rolling in their graves.

Photo Credit: 
Gage Skidmore

More from Americans for Tax Reform

Top Comments

Cloward Piven Democrat

Good article. Bernie Sanders is a well-meaning crackpot backed by globalist billionaires and an army of disenfranchised young people who cannot find jobs and don't realize how socialist destroys opportunity and freedom. If they think they're poor now, wait until Bernie and the Marxist-progressive wing of the Democratic Party have the whole country on food stamps due to another poorly thought out program like the Unaffordable Care Act.


Millennials: A Generation in Financial Chaos

Share on Facebook
Tweet this Story
Pin this Image

Posted by Michael Eyerman on Thursday, February 4th, 2016, 12:02 PM PERMALINK


Millennials are set to become one of the most important constituencies in the 2016 election cycle. This generation faces many diverse issues as they enter the workforce and move out from under the umbrella of their parents. Generation Opportunity, a grassroots organization that represents the interests of Millennials, put out the 2016 State of the Millennial Report, which highlights many of the issues that Millennials are facing today and in the future.

Here are three of their main findings:

  • Millennials face stagnant economic opportunities. As an increasing amount of younger Americans join the workforce the unemployment rate for millennials soars above other generations. Currently, unemployment for 18-29 year olds is around 8%; much higher than the 3.7% for those over the age of 29. Also, many millennials have given up looking for a job all together after a search that has left them unemployed and frustrated with the country’s current economic state.
  • Expanding higher education costs and low wages have put many millennials in a dire financial mess. As young Americans are attending colleges and universities around the country and with tuition rising at rapid rates, millions of young Americans find themselves with mountains of debt. In addition the report states, millennials face “lower levels of wealth and personal income than their two immediate predecessor generations.” With higher unemployment and underemployment rates, this all makes for Millennials to be the first generation that is worse off than the previous one. 
  • Government debt has become an uncontrollable monster that Millennials will be forced to pay. The US national debt is almost $19 trillion and continues to grow every day. Millennials are going to be forced to pay the bill. Elected officials continue to spend an excessive amount of taxpayer money and ignore the snowballing national debt. One particular program that will cause millennials many sleepless nights is Social Security, which is set to go bankrupt in 2034 almost a decade before the first millennials are set to receive their benefits.

 

With the 2016 election cycle underway, it is time for millennials to vote for candidates who stand to do something about these issues and protect future generations. 

Photo Credit: 
Elizabth Hahn from Flickr.com

More from Americans for Tax Reform

Top Comments

Cool Slim

DAVID GREGORY: Are US Treasury Bonds still safe to invest in?

PAUL GREENSPAN: Very much so. This is not an issue of credit rating. The United States can pay any debt it has, because we can always print money to do so. There is zero probability of default.

Paul Greenspan said in plain English that we don't have to worry about the national debt.

https://www.youtube.com/watch?...


This Is How the Pentagon Wasted $17 Billion in Afghanistan

Share on Facebook
Tweet this Story
Pin this Image

Posted by Emily Leayman on Wednesday, February 3rd, 2016, 4:55 PM PERMALINK


We all know the Department of Defense receives one of the larger allocations from the federal budget, but is that money always spent wisely?

Looking at the Afghanistan War alone, that answer is no.

ProPublica compiled a seemingly endless list of $17 billion in wasteful spending, but here are a few of the big zingers:

-$8 billion for a failed drug war: Despite a 14-year effort, Afghanistan now leads the world in heroin production.

-$2 billion for roads Afghanistan cannot afford to maintain.

-$936 million for underused aircraft: Afghanistan does not have enough trained people to use them for counterterrorism missions.

-$486 million for useless aircraft: Speaking of planes, 20 planes could not be flown, and most were sold for scraps.

-$43 million for one gas station: Wait, aren’t gas stations private businesses? A DoD task force developed one anyway. Even further, it was an alternative natural gas station, and most cars were equipped for, well, regular gas.

To paint a picture of how much money the DoD wasted, ProPublica created an info graphic where you can choose one instance of waste and see what it could have funded.

For instance, just the $1.4 billion from underused and useless aircraft could have translated into clinics and community centers for veterans, and job training for 1.4 million veterans, youth and other workers. Moreover, wasteful defense spending translates into a weaker national defense in a time of rising global uncertainty.

Legislators like Sens. John McCain and James Lankford are fed up with the lack of accountability in spending. McCain’s “America’s Most Wasted” report and Lankford’s “Federal Fumbles” report continue the legacy of Sen. Tom Coburn’s celebrated “Wastebook,” which revealed billions of wasteful spending.

In 2015, Lankford also introduced the Taxpayer’s Right to Know Act, which would create a database of federal agencies’ spending.

Lucky for taxpayers that want to know where their money is going, the twin House bill passed, and the Senate added it to the floor schedule.

$17 billion may not even be the full extent of the Pentagon’s wasteful spending in Afghanistan. Last week, ATR reported on a failed $800 million Pentagon budget meant to produce growth and stabilization in the Middle Eastern country. This is why an audit of their books is more important than ever. Until the Pentagon and other agencies become transparent with their spending, the taxpayers will never know. 

 

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

More from Americans for Tax Reform

Top Comments


SEC Taking Heat on...Climate Change?

Share on Facebook
Tweet this Story
Pin this Image

Posted by Justin Sykes on Wednesday, February 3rd, 2016, 9:54 AM PERMALINK


Recently the Securities and Exchange Commission (SEC) has come under fire for it’s handling of climate change disclosures with regard to SEC filings. At first blush one would assume very limited, if any, justification for considering the science of climate change in SEC filings…and this assumption would be logical.

So why is the SEC being pressured to require disclosures on climate science in filings by companies, that for the most, are not nor have been engaged in the field of climate science? The issue arose in 2010, when the SEC proposed “interpretive guidance” on existing disclosure requirements with regard to climate science. To be clear, the SEC did not issue a disclosure rule, simply “guidance” most likely the result of outside influence from extreme idealist and the government.

Given that most companies filing SEC disclosures are not climate scientist, and are not likely engaged in climate science research, the “guidance” went somewhat unheeded. In fact, the SEC has seemed to agree for the most part with reluctance to follow up on the issue.

In the two years following the release of the interpretive guidance, the SEC issued over 40 comment letters to companies addressing climate change disclosure. Yet that number dropped significantly with only three letters issue in 2012 and zero issued in 2013. 

The most logical reason being that the SEC came to realize that such disclosures find little company in basic logic, and the agency’s time is better spent on its core mission, instead of serving the ideological musings of the extreme left. Just the same these outside pressures have reared their misguided head again, recently pushing an agency charged with holding expertise on securities laws to expand to climate science.

The SEC should take comfort in the fact that such a push for climate science based disclosures in securities filings sounds, as far outside the scope of SEC functions to most as it does the agency itself. One can only hope the SEC stands strong, sending a message to other federal agencies, that serving core policy goals, and not outside ideologies is the goal. 

 

Photo credit: John M

More from Americans for Tax Reform

There are no related posts.

Top Comments


New Jersey State Senator Proposes Bill to Infringe on Ability to Buy Pets

Share on Facebook
Tweet this Story
Pin this Image

Posted by Katie McAuliffe on Tuesday, February 2nd, 2016, 1:42 PM PERMALINK


Senator Lesniak of the New Jersey State Senate recently introduced NJ SB. 63, which infringes on the right to conduct business via the Internet.  This bill specifically attempts to regulate an already regulated industry, animal breeding.  It is now a common practice to purchase a puppy of a specific breed or cross breeds online from a private breeder. 

The senator uses the rallying cry of animal abuse to shield the true nature of the bill, more intrusion and regulation of the internet on the part of the government.  Animal abuse should be taken seriously.  Americans level of awareness of “puppy mills” or other unsavory breeding methods for any pet has raised dramatically over the decades.  It is my belief that no one in search of that special pet wants their best friend or its relatives to have been abused in any way.

This problem of abuse and added regulation has already been addressed by Animal Plant Health Inspection Service through USDA in 2013.  The rule established that these “unseen sellers” must be federally licensed, thus allowing inspection by federal authorities.  The rule also encourages buyers to report inhumane conditions and sickness stemming from breeding mismanagement.  To put it simply, the New Jersey bill is there only to force regulation down the throats of small business owners while increasing government control. 

The bill, read to the letter, seems to completely ignore the need for service and emotional support dogs, which are often done via the Internet sometimes through unseen sellers.  Many people with mental and physical disorders, ranging from a child with autism to a veteran to PTSD, use service dogs to better their quality of life.  This bill has the potential to hurt those in need by limiting their access to available animals.  

Photo Credit: 
Jonathan Kriz

More from Americans for Tax Reform

There are no related posts.

Top Comments


European BEPS Proposal Is a Tax Grab Aimed at American Business

Share on Facebook
Tweet this Story
Pin this Image

Posted by Alexander Hendrie on Tuesday, February 2nd, 2016, 8:00 AM PERMALINK


The European Commission last week moved one step closer toward implementing a series of tax and regulatory proposals aimed directly at American businesses. This proposal is a thinly veiled tax grab at U.S. businesses and workers that will make it even harder for American businesses to operate across the world and could leave taxpayers on the hook for billions in retroactive payments.

This plan is being developed based on the Organisation for Economic Co-operation and Development’s (OECD) base erosion and profit shifting (BEPS) project, a broader effort by tax collectors in many countries to surreptitiously extract more revenue from businesses operating across the world.   

The European plan includes an information-sharing regime that will allow countries to trade sensitive tax information with each other and will designate many existing tax arrangements as “illegal state aid.” This could completely overhaul how business taxes are applied by unilaterally overriding existing tax agreements held between the U.S. and many of its trading partners and could force U.S. companies to pay taxes retroactively. 

Clearly, the impetuous behind this proposal is to force U.S. businesses to pay more in taxes. Officials in the EU have their eye on up to €70 billion (roughly $75 billion) they say businesses – the majority of them American – owe in additional taxes each year. In reality, the plan will allow EU states to tax income that they never had any right to tax in the past.

Treasury officials have already challenged the EU plan, which will be implemented in a two-year window once approved by the 28 EU members. Top Treasury official Robert Stack expressed concern that U.S. taxpayers will be left on the hook to pay for EU aggression and called into question the “basic fairness of the proceedings.”

This tax grab has also drawn bipartisan attention from Congress, led by Finance Committee Chairman Orrin Hatch (R-Utah) and Ranking Member Ron Wyden (D-Ore.) who share Treasury's concern that the plan is discriminatory and will hit American businesses and taxpayers.

Given this bipartisan agreement, Congress and the Obama Administration should vigorously defend U.S. companies from this European aggression. But lawmakers should also be proactive and look to ease the burden that the American tax code places on business competitiveness.

The average rate in the developed world is 25 percent, and countries like the United Kingdom, Germany, and Canada have rates even lower rates. The American corporate rate – at almost 40 percent is an outlier, and must be reduced substantially to compete with the rest of the modern world. 

In addition, the U.S. is one of the few remaining developed countries to have a worldwide tax system. This means that all businesses profits of an American business are taxed, even profits earned and taxed overseas. Although companies are allowed limited tax deferral on foreign earned income through a tax credit, this system nevertheless creates needless complexity.

This combination of an abnormally high tax rate and an outdated worldwide taxation system creates an environment that squeezes American businesses. Conversely, fixing these problems will provide the economy with a much-needed boost by encouraging stronger economic growth, more jobs, and higher wages.

Given the imminent European tax grab, Congress and the administration must double down to defend American business interests from this aggression. At the same time, there is urgent need for Congress to reform the ineffective tax code that is crushing U.S. business.

 

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

More from Americans for Tax Reform

Top Comments


Vermont: The Next Failed Obamacare Exchange?

Share on Facebook
Tweet this Story
Pin this Image

Posted by Alexander Hendrie on Tuesday, February 2nd, 2016, 7:00 AM PERMALINK


Vermont’s Obamacare exchange still does not work, more than two years after launching.

Despite receiving over $200 million in federal funds and more in state funding, the system shows no sign of improvement and may be in a death spiral toward collapse.

As reported by Erin Mansfield of VTDigger news, the system is beset by basic functionality problems. The “change of circumstance” function no longer works, which has resulted in a backlog of more than 4,000 requests. Another technical problem with the exchange resulted in over 1,000 individuals being unable to reenroll in their insurance plans.

Obamacare exchanges exist to facilitate the purchase of taxpayer-subsidized insurance. For this to occur, the system must be able to accurately process personal information. If this isn’t happening – as Vermont’s exchange has failed to do to date – the entire system breaks down as the federal government cannot tell what level of subsidy an enroll should receive, if they are eligible at all, and if they have maintained coverage or need to pay the Obamacare individual mandate tax.

For taxpayers, this means billions more in wasted money through incorrectly paid subsidies. For the more than 30,000 on Vermont’s exchange – this problem has led to dropped coverage, incorrect billing, and a host of other confusing problems.

Over the past two years, the state has spent millions of dollars fixing the change of circumstance function – a basic tool to allow customers to update and change basic personal information. For almost two years, the exchange instead relied on a mind-bogglingly complex method of processing requests, with many having to be logged and entered manually into up to six different databases. This resulted in a backlog of more than 10,000 requests for most of 2015.

Unsurprisingly, stakeholders of Vermont Health Connect have described the state of the exchange as “depressing” amid fears it is going backwards. Officials are beginning to realize the system may be beyond saving and are looking at moving to the federal Healthcare.gov.

Given these issues, it seems inevitable that Vermont will join the growing list of failed state exchanges in Oregon, Hawaii, Nevada, and New Mexico.

Of these, the most troubling is Oregon. Like Vermont, Oregon’s $305 million exchange failed to work by the November 2013 deadline – or months later. The system was soon shut down by then-Governor Kitzhaber, at an additional cost of $41 million in mostly federal funds.

Recently discovered emails suggest that the Cover Oregon debacle can trace its origins to the Governor’s partisan political advisors who closely managed the project and made the call to shut down the exchange in order to assist the Governor’s reelection campaign. It appears that Cover Oregon's infrastructure was close to 90 percent complete when this happened.

While Obamacare state exchanges continue to fail to provide Americans a pathway to accessible healthcare, things do not get better for Americans once they are enrolled on an exchange. A recent study by Freedom Partners found that Obamacare exchange premiums were skyrocketing in 2016. 34 states had top premium increases of 20 percent or more with Minnesota topping this list with a top premium increase of close to 50 percent.

Congressional leaders are expected to soon craft a replacement healthcare plan focused on patient centered, affordable health care. Given the disaster that is Obamacare this cannot come too soon. In the meantime, Congress needs to ensure to continued oversight over the state exchange debacle.

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

More from Americans for Tax Reform

Top Comments

Valerie Mullin

With maintenance we're closer to wasting away 300 million for our Vermont non-working exchange. So not only are our insurance rates skyrocketing but so are our taxes to pay for this debacle. As long as Vermonters keep electing the same people in Montpelier, we'll keep getting the same results. So sad but predictable.

Linus MacAlistair Stallman

Why does ATR continue to lobby against the American middle class?


Despite Naysayers, Conservative Leaders Agree on Justice Reform

Share on Facebook
Tweet this Story
Pin this Image

Posted by Jorge Marin on Monday, February 1st, 2016, 5:57 PM PERMALINK


In a press call with the US Justice Action Network Thursday, Americans for Tax Reform President Grover Norquist addressed the concerns some Senators have with criminal justice reform.

The US Justice Action Network brings together both conservative and progressive organizations to promote a “smarter, fairer, and cost effective” criminal justice system on all levels of government. Among the members are Americans for Tax Reform, the Faith and Freedom Coalition, Freedomworks, and Right on Crime.

While a small number of politicians want to put the brakes on Senate reform packages, the bulk of the center-right movement has come out in strong support of sensible reforms. ATR president Grover Norquist stated that

“As we have learned from a decade of success, sentencing reform works. The package being considered by the Senate is meant to implement the lessons of states like Georgia and Texas, who have seen historic crime rate reductions. The senators who wish to look more closely at the provisions in the Sentencing and Corrections Act are right to be engaged on the issue, but they should also look to the red states which have pioneered these reforms. The package in question is right for the states, and it is right for the nation. We look forward to improving the bill and getting good policy passed.”

Crime rates in the United States has been dropping steadily for over two decades. As America learns more about the interplay between long sentences and lock-em-up policies, the country has found out that there are better ways to handle crime and justice.

Daniel Allott recently covered the call in the Washington Examiner. Allott noted that “For those concerned about ever-encroaching government, the federal criminal code has risen from 3,000 to 5,000 crimes in a generation,” an issue especially salient for those worried about criminal intent reform. He also made the argument by recognizing that “America's 2.3 million inmates cost taxpayers $80 billion a year,” ostensibly making justice reform a taxpayer issue.

The large American prison population has reached—and surpassed—the point of diminishing return. Research and experience have shown that to continue reducing crime, the US needs to look at cost-cutting investments and better laws. Conservative leaders and Republican legislatures have shown the way forward, the judiciary committee chairs in both chambers have taken up the calls, now it is time for the center-right to unite behind its own reforms. 

Photo Credit: 
Gage Skidmore

More from Americans for Tax Reform

Top Comments


ATR Urges Opposition to King-Reid Net-Metering Amendment

Share on Facebook
Tweet this Story
Pin this Image

Posted by Justin Sykes on Monday, February 1st, 2016, 4:38 PM PERMALINK


This week Senators Angus King (I-Maine) and Harry Reid (D-Nev.) plan to offer an amendment to the “Energy Policy and Modernization Act” that would expand federal control over the states and infringe upon the power of state authorities to make decisions regarding energy policy. Americans for Tax Reform (ATR) urges opposition to this amendment to protect state sovereignty and halt further expansion of the federal government’s power. 

The King-Reid amendment would establish stringent federal standards dictating how each state may operate their net metering programs. Net metering policies vary by state, but in general electric utilities are required to purchase excess electricity generated by customers with rooftop solar installations at the full retail rate as opposed to wholesale. As result, solar customers avoid paying for many of the fixed costs of the grid, and thus these fixed costs are shifted onto non-solar customers.  

The new federal standards imposed by the King-Reid amendment, such as requiring extensive evidentiary hearings, would thus act as a new legislative barrier to states seeking to address the cost-shifting dilemma. 

This amendment would effectively take such decision making ability away from the states and give it to the federal government. Furthermore, the King-Reid amendment would only work to further the practice of forcing non-solar customers to subsidize net-metered customers.

States, rural electric cooperatives, and certain localities are undoubtedly in a much better position than the federal government to make decisions about state energy policy. The states are already reeling from a slew of regulations put forth by President Obama, such as the Clean Power Plan, that empower federal regulators at the expense of state sovereignty.

ATR urges lawmakers this week to oppose the King-Reid amendment, and instead vote to protect state sovereignty and to stop the further expansion of the federal government’s power over the states. 

 

Photo credit: Glyn Lowe

More from Americans for Tax Reform

There are no related posts.

Top Comments


Cato’s Matthew Feeney Explains the Importance of Middlemen in the Sharing Economy

Share on Facebook
Tweet this Story
Pin this Image

Posted by Dennis Cakert on Monday, February 1st, 2016, 1:05 PM PERMALINK


In his most recent Forbes column, Matthew Feeney, policy analyst at the Cato Institute, explains how the sharing economy contributes value by lowering transaction costs, not by transporting or lodging people.

Feeney begins with an anecdote about trade between prisoners in a POW camp. Each prisoner values the goods in a Red Cross care package differently. When care packages arrive, the prisoners who know the likes and dislikes of their fellow inmates help to facilitate trade, earning the name “middlemen.” The value the middlemen contribute is the knowledge they possess, for which they charge a fee.

The sharing economy contributes value in a similar way:

Uber and Airbnb do not own cars and hotels. Rather, they are profiting from what they know about consumers and dead capital. Before the rise of Uber there were many people who needed rides but were unable to efficiently contact nearby strangers who would be willing to give them a ride in exchange for a fee. In a similar fashion, Airbnb connects travelers in strange cities to the hundreds of nearby homeowners who have spare bedrooms.”

To regulate the sharing economy as a transportation or lodging business is a mistake. They are not in the business of transporting or lodging people, they are in the business of connecting people who wish to transport or lodge others. Hence the name “Peer to Peer” service.

It might strike many readers as bemusing that companies that merely trade in information can be valued at billions of dollars. Like some POWs critics of middlemen regard Uber’s and Airbnb’s profits not as “reward for labour, but as a result of sharp practices.” Not too long ago a friend of my family remarked that he didn’t understand why Uber was worth so much money when it doesn’t “make anything.” Unfortunately, many people remain skeptical or ignorant of the fact that the total welfare within a group can dramatically increase without an increase in available goods. All that is needed is voluntary exchange.

Using another example, Feeney cites how the sharing economy service “Klink” delivers alcohol for residents in Washington, D.C. Unfortunately, because of strict alcohol regulations, the service is currently barred from competition in Virginia.

Clearly, people are willing to pay for lowered transaction costs, and we should expect that trend to continue and for more companies to seize the kind of opportunities the founders of Uber and Airbnb saw years ago. But it shouldn’t be a surprise if suspicion of middlemen as well as anti-competitive market incumbents hamper the spread of this revolution, if only temporarily.”

Top Comments


hidden
×