The Death Tax should be repealed this year as a part of much-needed, pro-growth tax reform. At its core, this tax is extremely unfair, forcing families to pay a tax on their loved one’s family-owned businesses or farms.

At a steep 40 percent rate, those hit by the Death Tax must give up a portion of their loved one’s legacy because of the tax. The truly wealthy can avoid the tax through an army of accountants, attorneys, and charitable planners, but those who are hit hardest generally are first and second generation small business owners and cannot afford the same tax avoidances the wealthy, like Hilary Clinton, use. Americans for Tax Reform along with 131 other organizations wrote a letter to Congress urging immediate and permanent repeal of the Death Tax.

Repeal of the Death Tax is not only common-sense, but it would also spur economic growth. In 2016, the Tax Foundation estimated that repeal of the Death Tax would create 150,000 jobs. Additionally, the  Joint Economic Committee reported that the Death Tax has suppressed over $1.1 trillion of capital in the United States’ economy since being introduced. Much of this comes from small businesses, who are the core of America’s economy. This loss of capital ultimately results in fewer jobs and lower wages for American workers.

In addition, the Death Tax contributes a miniscule amount of revenue relative to the size of federal government. In all, it makes up only one half of one percent of all federal revenue. Because the Death Tax is so economically destructive, almost all the revenue lost would be offset by increased economic growth. As noted by the Tax Foundation, repealing the Death Tax would result in $240 billion in lower taxes over a decade. However, the economic growth created by repealing the Death Tax would produce $221 billion in federal revenue because of increased wages and more jobs.

The majority of Americans oppose the Death Tax and support its repeal. Countless polls have proven that a majority of Americans would support full and permanent repeal of the Death Tax.  

Senator John Thune (R-S.D.) and Representative Krisiti Noem (R-S.D.). have introduced legislation, S. 205/ H.R. 631, The Death Tax Repeal Act of 2017, to permanently repeal the Death Tax. ATR urges all members of Congress to support and co-sponsor these bills. Likewise, executive and congressional leaders have been at the forefront of this debate. Both the House GOP tax blueprint and the plans released by President Trump have both called for the repeal of the Death Tax.  

As the President and Congress are moving forward with pro-growth tax reform, the repeal of the Death Tax should be a vital part of reform. 

ATR has sent the following letter in support of proposed changes to the Contact Lens Rule, 16 CFR Part 315, Project No. R511995:

On behalf of Americans for Tax Reform, I write in support of new changes to the Contact Lens Rule (16 CFR Part 315, Project No. R511995.) The proposed changes to the rule promote and protect the free market by ensuring consumers have the freedom to purchase where they choose free from interference.

In 2003, the Fairness to Contact Lens Consumers Act (FCLCA) was made into law in response to this issue. The act required that optometrists provide patients with a copy of their prescription.

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. 

Since the rule has been enacted, patients have had more options on where to fill their prescriptions. 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 newly proposed changes to the contact lens rule protect the successes from FCLCA introducing new provisions that will strengthen federal law.

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.

Importantly, changes to the rule do not include some of the proposed changes that would restrict the free market. 

Critics of existing law have long argued that it is unsafe for patients to fill their prescriptions through a third party. These opponents have proposed regulations to the FCLCA such as allowing optometrists to block any third party from filling a prescription based on their own discretion and prohibiting automated verification that makes it easier and faster for patients to receive their prescriptions.

After a year-long examination the FTC has rightly debunked all safety issues that have been raised and decided that there is no basis for implementing these unnecessary regulations.

The new proposal will add to the success of existing law, promoting the well-being of patients and the free market. I urge the FTC to move forward with this rule and continue to reject any proposals that weaken contact lens consumer protections. 

Onward, 

Grover Norquist

At today’s Senate Finance Committee hearing for Tom Price to be Secretary of Health and Human Services, Sen. Claire McCaskill (D-Mo.) falsely claimed that repealing Obamacare’s 20 new or higher taxes would benefit “the rich.”

As further evidence of how ignorant Sen. McCaskill is about the contents of the law,Obamacare imposed roughly one trillion dollars ($1,000,000,000,000) in higher taxes over ten years that directly and indirectly hit middle class families and businesses.

The law imposes a tax for failing to buy government-mandated insurance, imposes taxes on the millions of Americans using Health Savings Accounts and Flexible Spending Accounts, imposes an income tax hike on Americans facing high medical bills, imposes a new tax on health insurance, a tax on medical devices, a tax on employer provided care, and a tax on innovative medicines and other treatments.

Repealing these taxes will provide much needed relief to the paychecks of families across the country. Repealing Obamacare will also undo Barack Obama’s broken promise not to sign “any form of tax increase” on any middle class American family.

Individual Mandate Non-Compliance Tax ($43.3 billion tax hike between 2016-2025)

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.

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 ($6.7 billion tax hike between 2016-2025)

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 ($32 billion tax hike between 2016-2025)

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.

Flexible Spending Account Tax ($32 billion tax hike between 2016-2025)

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.

Health Insurance Tax ($130 billion tax hike between 2016-2025)

In addition to mandating the purchase of health insurance through the individual mandate tax, Obamacare directly increases the cost of insurance through the health insurance tax. The tax is projected to cost taxpayers – including those in the middle class – $130 billion over the next decade. 

The total revenue this tax collects is set annually by Treasury and is then divided amongst insurers relative to the premiums collected from certain plans each year. While it is directly levied on the industry, the costs of the Obamacare health insurance tax are inevitably passed on to small businesses that provide healthcare to their employees, middle class families through higher premiums, seniors who purchase Medicare advantage coverage, and the poor who rely on Medicaid managed care.

According to the American Action Forum, the Obamacare health insurance tax will increase premiums by up to $5,000 over a decade and will directly impact 1.7 million small businesses, 11 million households that purchase through the individual insurance market and 23 million households covered through their jobs. The tax is also economically destructive – the National Federation for Independent Businesses estimates the tax could cost up to 286,000 in new jobs and cost small businesses $33 billion in lost sales by 2023.

Chronic Care Tax ($35.7 billion tax hike between 2016-2025)

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.

“Cadillac Tax” -- Excise Tax on Comprehensive Health Insurance Plans ($87.3 million tax hike between 2016-2025)

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. 

HSA Withdrawal Tax Hike ($100 million tax hike between 2016-2025)

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 ($800 million tax hike between 2016-2025) 

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.

In a recent letter, Americans for Tax Reform urged Indiana lawmakers to reject measures being pushed by Republican House Speaker Brian Bosma that would raise the state gas and cigarette tax.