How the Trump Republican Tax Cuts Are Helping Vermont
Vermont is benefiting greatly from the Tax Cuts and Jobs Act enacted by congressional Republicans and President Trump:
41,570 Vermont households are benefiting from the TCJA’s doubling of the child tax credit.
Every income group received a tax cut. Nationwide, a typical family of four received a $2,000 annual tax cut and a single parent with one child received a $1,300 annual tax cut.
236,900 Vermont households are benefiting from the TCJA’s doubling of the standard deduction. Thanks to the tax cuts, nine out of ten households take the standard deduction which provides tax relief and simplifies the tax filing process.
10,920 Vermont households are benefiting from the TCJA’s elimination of the Obamacare individual mandate tax. Most households hit with this tax made less than $50,000 per year.
Lower utility bills: As a direct result of the TCJA’s corporate tax rate cut, Vermont residents are saving money on utility bills. Lower electric, water, and gas bills help households and small businesses operating on tight margins. For example, at least two Vermont utilities reduced their customers' bills (see below).
Thanks to the tax cuts, Vermont businesses of all sizes are hiring, expanding, raising pay and increasing employee benefits:
Mack Molding (Arlington, Vermont) - Major facility upgrades:
Mack Molding, an injection molder and contract manufacturer based in Vermont, announced this week that it is investing $5.4 million to upgrade two existing facilities in response to “favorable tax changes” and a surging economy. - July 16, 2018 National Association of Manufacturers article excerpt
Vermont Gas Systems, Inc. (South Burlington, Vermont) – The utility is passing along tax savings to customers:
The Company’s rate filing reduces overall rates by 3.8%. This change is the result of a 4% increase in the daily access and distribution charges (collectively referred to as “base rates”), use of $8.1 million from the System Expansion and Reliability Fund (“SERF” or the “Fund”), and a decrease in the natural gas charge of 14.8%. This filing also incorporates significant savings to customers resulting from the recent reduction in the federal income tax rate. For rates that are currently in effect, customers are receiving direct bill credits as proposed by VGS, supported by the Department of Public Service (“Department”) and approved by the PUC on January 24, 2018. This rate filing incorporates these permanent tax cuts into rates for the 2019 rate year and beyond so that customers will continue to receive the full benefit of the tax change. - February 15, 2018 State of Vermont Public Utility Commission document
Green Mountain Power (Colchester, Vermont) – The utility is passing along tax savings to customers:
The Vermont Public Utility Commission has adjusted base rates for Green Mountain Power Corp. to cover projected costs by effectively approving a nearly 2.7% increase for the fiscal year 2020 that will go into effect Oct. 1.
In an Aug. 29 decision (Docket No. 19-1932), Vermont regulators approved a 2.67% base rate hike for GMP, as recommended by the state Department of Public Service who recalculated the utility's rate need based on proposed reductions. Énergir LP subsidiary GMP had originally asked for a higher 2.92% increase. The utility still needs to modify the rates to meet proposed reductions recommended by the DPS.
The 2.67% rate hike will be on top of a 5.43% rate increase that officially went into effect at the start of 2019 but whose impact has been mitigated so far as a result of a windfall in federal tax cuts being passed along to ratepayers in the form of credits. With the tax credits expiring at the start of October, the full weight of the 5.43% rate increase will now be borne by customers. Line items related to the emerald ash borer infestation and major storm recovery costs are also going into effect. - August 30, 2018 S&P Global excerpt
DJ's Tree Service (Colchester, Vermont) -- Used provisions in the tax cut to buy new equipment:
"One truck, a chainsaw and a few hand tools is all Jim Myers and his former business partner had when they started their tree service business.
"Our first customer said he wouldn't hire us unless we were insured. We told him 'of course, we're insured, but we need a deposit before we get started.' We took the deposit and bought insurance," said Myers smiling as he retold the story.
......
"A recently added service from the company is creating and selling mulch. When removing a client's tree, they would run into the challenge of proper disposal. So as a solution to the problem, the Myers purchased a Bandit Beast recycler. The recycler is capable of processing large unusable waste wood, to create high-quality mulch, which is then sold to residential or commercial clients. This machine can process tree/land clearing debris right down to the stump as well as processing construction debris. To assist in the operation of the recycler and sell the mulch, DJ's Tree Service hired a few new employees. The purchase of the recycler allowed the company to take advantage of the Tax Cuts and Jobs Act of 2017. Part of the act made changes to Section 179 of the IRS Code, which allows small businesses to deduct the entire price of new machinery and equipment during the year of the purchase. Prior to the Tax Cuts and Jobs Act, businesses could only deduct a portion of the price of the equipment each year." -- July 4, 2019 Vermontbiz.com
Vermont Gas Systems, Inc. (South Burlington, Vermont) – The utility will pass savings from tax reform to customers:
Vermont Gas announced today that it will reduce 2018 customer costs by $2.4 million, the full benefit of December's federal tax law changes.
Vermont Gas has filed a notice with the Vermont Public Utility Commission to give customers a monthly credit on 2018 bills, starting February 1st and continuing through October 2018. Each of Vermont Gas’ 51,000 customers will receive a credit on their heating bill, based on usage, over the next eight months. For families, this bill credit will total almost $40 over the year; businesses could see even more.
“Our commitment to our customers is to maintain affordable and competitive rates, while offering top-rate customer service. We are so pleased to return the full benefit of this new federal tax reduction to every family and business this year,” said Don Rendall, President and CEO of Vermont Gas. “Our customers will start to see a reduction in their heating bills next month and with the recent bitterly cold weather we’ve been experiencing, this money will be a welcomed relief.”
While each customer’s total savings will vary depending on their actual usage, the average residential customer’s annual bill will be almost $40 lower because of this change. Businesses could receive hundreds, or thousands of dollars credited over the course of the year, depending on usage.
“As a Vermont Gas customer at my home and for my downtown hair salon, I’m always looking for ways to save money,” said Glenn Brown, Burlington resident and owner of Chop Shop Hair Design. “I’m excited that Vermont Gas is passing along the tax credit to customers – every little bit helps this time of year.”
“We’re pleased to return this money to customers because we know how important it is for everyone to keep costs in check, especially during the winter months,” Rendall continued. “Natural gas is already the cleanest and most affordable heating choice for over 51,000 families and businesses and we know these savings will help.” – Jan. 23 2018, Vermont Gas Systems, Inc. press release excerpt
Brattleboro Development Credit Corp (Brattleboro, Vermont) -- Opportunity Zones helped encourage investment in Brattleboro:
The EDA said the grant will be going to "a designated Opportunity Zone, created by President Donald J. Trump's Tax Cuts and Jobs Act of 2017 to spur economic development by giving tax incentives to investors in economically-distressed communities nationwide."
"Congratulations to the town of Brattleboro on its recent award from the EDA to make infrastructure improvements at the Exit One Industrial Park and Delta Business Campus," Gov. Phil Scott said in a statement. "I'm pleased to see the town and the Brattleboro Development Credit Corp. working together to make economic expansion a reality in southern Vermont. These partners have set the table for economic growth by positioning prime developable land to anchor industrial sites that host more jobs in both traditional and new or expanding industries. I also want to thank our federal partners and Vermont's congressional delegation for supporting funding for the EDA. I hope this region's Opportunity Zone designation continues to drive interest in public and private investment in the coming years." -- August 12, 2019 Brattleboro Reformer
Voi Inc. (Springfield, Vermont) -- The artificial intelligence company was able to open a location because of a grant that was made possible by the TCJA Opportunity Zones:
SPRINGFIELD, Vt. — The Black River Innovation Campus (BRIC) will be getting a new manufacturing neighbor dedicated to artificial intelligence behavioral technology inside the former Park Street School.
With the help of a grant from the Center on Rural Innovation, Voi Incorporated will be located adjacent to the Black River Innovation Campus.
..
"According to Calvelli, the Center on Rural Innovation Fund seeks to fund economic growth in rural communities while making connections with technology based companies to provide jobs for economically depressed areas.
"The Center on Rural Innovation Fund invests in growth businesses located in qualified Opportunity Zones in the United States to enhance economic growth and job creation in small communities. The fund seeks to find attractive technology-enabled operating businesses in rural geographies, which are under-served by traditional venture capital institutions," Calvelli said. "The Center on Rural Innovation Fund identifies, funds, and supports the best tech entrepreneurs American small towns have to offer." -- February 28, 2020 Argus-Champion.
Opportunity Zone in Springfield, Vermont: Two residential properties were purchased because of tax savings through the Opportunity Zone program, bringing jobs and business to the town:
SPRINGFIELD, Vt. — The town of Springfield became a center of machine tool manufacturing in the 20th century. But as the industry began to wane, this industrial town on the Connecticut River, once an economic powerhouse, fell on hard times and has struggled to reinvent itself.
Local boosters say a new federal program that gives wealthy people incentives to invest in low-income communities could be the key to reviving Springfield's economy.
The so-called “Opportunity Zone" program has brought new investors to this storied factory town.
The tax break incentive has proved to be “an extremely attractive tool" for economic development, according to Bob Flint, the executive director of the Springfield Regional Development Corp.
“It's stimulated really interesting projects," Flint said.
Two multi-unit residential properties in Springfield have already been purchased through the Opportunity Zone program. -- September 8, 2019 Valley News Article.
Lakemont Retirement Community (Newport City, Vermont) -- A developer was able to build a new retirement community by taking advantage of the TCJA Opportunity Zone program:
NEWPORT CITY — Developer Heidi Eichenberger wants to build a $22 million housing development called Lakemont Retirement Community on Lakemont Road featuring nearly 200 apartments and a full range of services.
She hopes to tap into a newly created "opportunity zone" in Newport City that would allow people who sell property to invest and defer capital gains taxes into the future and also reduce the tax burden over time.
If all goes well with investments and permitting, construction could begin on Lakemont Retirement Community in the spring and be completed in October, said Eichenberger this week.
It's a unique development for Vermont that has support from Newport City Mayor Paul Monette, Jon Freeman, president of Northern Community Investment Corp., and others working in the accounting, construction and banking industries.
"I look at this as ideal," Monette said Thursday when some of the supporters and people working with Eichenberger on the project gathered at her office at the Hearing Center of Vermont on the Derby Road.
......
And it is the first large project to be proposed for one of Vermont's 25 "opportunity zones." There are thousands nationwide but the law that created these zones is new. There are two other zones in the Northeast Kingdom in Lyndonvile and St. Johnsbury.
Eichenberger said she initially looked at developing the project in Derby but switched to Newport City when she learned about the opportunity zone here. She created Lakemont Investment LLC to take advantage of this special zone.
The zone allows investors who sell property to invest their capital gains into the project and defer capital gains taxes for years and also see some tax breaks on the investment, according to Stephen Trenholm, certified public accountant with Gallagher, Flynn & Company. -- February 15, 2019 The Caledonian-Record article.
AT&T -- $1,000 bonuses for 73 Vermont employees. Nationwide, $1 billion increase in capital expenditures:
Today, Congress approved legislation representing the first comprehensive tax reform in a generation. The President is expected to sign the bill in the coming days.
Once tax reform is signed into law, AT&T* plans to invest an additional $1 billion in the United States in 2018 and pay a special $1,000 bonus to more than 200,000 AT&T U.S. employees — all union-represented, non-management and front-line managers. If the President signs the bill before Christmas, employees will receive the bonus over the holidays.
“Congress, working closely with the President, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world,” said Randall Stephenson, AT&T chairman and CEO. “This tax reform will drive economic growth and create good-paying jobs. In fact, we will increase our U.S. investment and pay a special bonus to our U.S. employees.”
Since 2012, AT&T has invested more in the United States than any other public company. Every $1 billion in capital invested in the telecom industry creates about 7,000 jobs for American workers, research shows. -- Dec. 20, 2017 AT&T Inc. press release
Walmart – Vermont employees at 6 Walmart stores received tax reform bonuses, wage increases, and expanded maternity and parental leave. Walmart employees who adopt children will be given $5,000 to help cover expenses.
Home Depot -- 3 locations in Vermont; Bennington, Williston, Rutland -- Bonuses for all hourly employees, up to $1,000.
Lowe's --200+ employees at two stores in Vermont; Burlington and Essex Junction-- Employees will receive bonuses of up to $1,000 based on length of service, for 260,000 employees; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.
Ryder (Two locations in Vermont; White River Junction and Williston) – Tax reform bonuses for employees.
Starbucks Coffee Company (8 locations in Vermont) - $500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plant and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.
Best Buy -- (Williston, Vermont) -- $1,000 bonuses for full-time employees; $500 bonuses for part-time employees.
Cintas (Multiple locations in Vermont) -- $1,000 bonuses for employees of at least a year, $500 for employees of less than a year.
Chipotle Mexican Grill (Burlington, Vermont) – Bonuses ranging from $250 to $1,000; increased employee benefits; $50 million investment in existing restaurants.
Comcast (Three locations in Vermont: Newport, Rutland, South Burlington) -- $1,000 bonuses; nationwide, at least $50 billion investment in infrastructure in next five years.
T.J. Maxx – (Five locations in Vermont; Barre, Burlington, Middlebury, Rutland, St Albans) – Tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and increased charitable donations:
The 2017 Tax Act benefited the Company in the fourth quarter and full year Fiscal 2018. The Company expects to continue to benefit from the 2017 Tax Act going forward, primarily due to the lower U.S. corporate income tax rate. As a result of the estimated cash benefit related to the 2017 Tax Act, the Company is taking the following actions:
Associates
- A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally
- An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally
- Instituting paid parental leave for eligible Associates in the U.S.
- Enhancing vacation benefits for certain U.S. Associates
Communities
Made meaningful contributions to TJX’s charitable foundations around the world to further support TJX’s charitable giving – Feb. 28, 2018 The TJX Companies Inc. press release excerpt
U-Haul (Multiple locations in Vermont) – $1,200 bonuses for full-time employees, $500 for part-time employees.
Dollar Tree, Inc. (Multiple locations in Vermont) -- Increased base wages, enhanced benefits including maternity leave for qualifying employees and employee training, totaling $100 million nationwide.
FedEx (Multiple locations in Vermont) – Accelerated and increased compensation; pension plan contributions:
FedEx Corporation is announcing three major programs today following the recently enacted U.S. Tax Cuts and Jobs Act:
- Over $200 million in increased compensation, about two-thirds of which will go to hourly team members by advancing 2018 annual pay increases by six months to April 1st from the normal October date. The remainder will fund increases in performance- based incentive plans for salaried personnel.
- A voluntary contribution of $1.5 billion to the FedEx pension plan to ensure it remains one of the best funded retirement programs in the country.
- Investing $1.5 billion to significantly expand the FedEx Express Indianapolis hub over the next seven years. The Memphis SuperHub will also be modernized and enlarged in a major program the details of which will be announced later this spring.
FedEx believes the Tax Cuts and Jobs Act will likely increase GDP and investment in the United States. -- Jan. 26 2018, FedEx press release
McDonald’s (25+ locations in Vermont) – Increased tuition investments which will provide educational program access for 400,000 U.S. employees. $2,500 per year (up from $700) for crew working 15 hours a week, $3,000 (up from $1,050) for managers, and more:
McDonald’s Corporation today announced it will allocate $150 million over five years to its global Archways to Opportunity education program. This investment will provide almost 400,000 U.S. restaurant employees with accessibility to the program as the company will also lower eligibility requirements from nine months to 90 days of employment and drop weekly shift minimums from 20 hours to 15 hours. Additionally, McDonald’s will also extend some education benefits to restaurant employees’ family members. These enhancements underscore McDonald’s and its independent franchisees’ commitment to providing jobs that fit around the lives of restaurant employees so they may pursue their education and career ambitions.
The Archways to Opportunity program provides eligible U.S. employees an opportunity to earn a high school diploma, receive upfront college tuition assistance, access free education advising services and learn English as a second language.
“Our commitment to education reinforces our ongoing support of the people who play a crucial role in our journey to build a better McDonald’s,” said Steve Easterbrook, McDonald’s President and CEO. “By offering restaurant employees more opportunities to further their education and pursue their career aspirations, we are helping them find their full potential, whether that’s at McDonald’s or elsewhere.”
Accelerated by changes in the U.S. tax law, McDonald’s increased investment in the Archways to Opportunity Program includes:
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- Increased Tuition Investment:
- Crew: Eligible crew will have access to $2,500/year, up from $700/year.
- Managers: Eligible Managers will have access to $3,000/year, up from $1,050.
- Participants have a choice for how they apply this funding – whether it be to a community college, four year university or trade school. There is no lifetime cap on tuition assistance – restaurant employees will be able to pursue their education and career passions at their own pace. The new tuition assistance is effective May 1, 2018 and retroactive to January 1, 2018.
- Lowered Eligibility Requirements: Increase access to the program by lowering eligibility requirements from nine months to 90 days of employment. In addition, dropping from 20 hours minimum to 15 hours minimum (roughly two full time shifts) per week to enable restaurant employees more time to focus on studies.
- Extended Services to Families: Extension of Career Online High School and College Advisory services to restaurant employees’ family members through existing educational partners Cengage and Council for Adult and Experiential Learning (CAEL).
- Additional Resources: Career exploration resources for eligible restaurant employees to be available later this year.
- Creation of an International Education Fund: Grants to provide local initiatives and incentives in global markets to further education advancement programs.
- Increased Tuition Investment:
“Since its inception, Archways to Opportunity was meant to match the ambition and drive of restaurant crew with the means and network to help them find success on their own terms,” said David Fairhurst, McDonald’s Chief People Officer. “By tripling tuition assistance, adding education benefits for family members and lowering eligibility requirements to the equivalent of a summer job, we are sending a signal that if you come work at your local McDonald’s, we’ll invest in your future.”
After launching in the U.S. in 2015, Archways to Opportunity has increased access to education for over 24,000 people and awarded over $21 million in high school and college tuition assistance. Graduates have received college degrees in Business Administration, Human Resources, Communications, Accounting, Microbiology and more. – March 29, 2018 McDonald’s Corporation press release excerpt
Note: If you know of other Vermont examples, please email John Kartch at jkartch@atr.org
The running nationwide list of companies can be found at www.atr.org/list
More from Americans for Tax Reform
Biden Wants IRS to Snoop on Your Bank Account: "Amounts that come into their bank accounts, and what amounts go out of their bank accounts."
President Biden wants to impose the largest tax increase since 1968 in order to hire 87,000 new IRS agents and auditors, and he wants them to have automatic access to information about every Americans' bank account as well as every Paypal, Venmo, and CashApp account, even if you are not accused of wrongdoing. The IRS would automatically obtain and store the data.
Today Biden creepily tried to justify the privacy invasion by saying it was just "two pieces of information."
What are the two pieces?
Biden said:
"The amounts that come into their bank accounts, and what amounts go out of their bank accounts."
Are you comforted?
If Democrats enact the plan, banks and third-party payment providers, like Venmo, PayPal, and CashApp would be required to report ALL account holders’ aggregate account outflows and inflows to the IRS.
The IRS will use these powers against Americans of all income levels. Requiring banks and third-party payment providers to report this kind of information is an indefensible invasion of privacy.
At a time when Americans are already struggling, these new reporting rules would create unnecessary burdens. As noted in this excerpt from Forbes:
It may create problems, however, that should be considered and addressed as this plan works its way through Congress. For example, consider a young couple saving up to buy a home. All savings are put into the “dream home” savings account. Then, when it comes time to make the down payment, the $50,000 dream home savings goes into the regular checking account, which is then wired to the seller’s escrow account. Buying a home is not a taxable event (at least for federal income tax), selling one is. Will the IRS receive information from the financial institutions that leads to an audit?
Paul Merski, vice president of congressional relations at Independent Community Bankers of America, voiced his criticism of the proposal:
Banks already report millions of transactions a day to the Financial Crimes Enforcement Network in the form of currency transaction reports, in addition to suspicious activity reports, which are required when potential illicit activity is detected by a bank. Banks are required to submit currency transaction reports when a deposit or withdrawal is $10,000 or more, a threshold that’s already very low, Merski said.
Merski said the proposal, as written, is akin to “sending your bank statement to the IRS every month,” which would be opposed by the banking industry because of the reporting burdens already required by federal regulators.
“The federal government can’t track all of that—any more requirements would be adding more hay to that haystack,” he said.
As also noted by the Wall Street Journal, the bank account snooping will give the IRS an "enormous" quantity of new data:
It would also create an enormous flow of information that the IRS would have to learn how to manage and use.
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Congress will have to weigh the potential burdens and privacy concerns against the revenue gains as it considers the plan.
The IRS has a long and poor and track record when it comes to safeguarding taxpayer information, so it won't be long before the private bank account information is shared with outside parties such as news organizations and progressive groups.
Photo Credit: Center for American Progress Action Fund
Ways and Means Dems Reject Commonsense Amendments to $3.5 Trillion Blowout
Democrats on the House Ways and Means Committee voted against numerous commonsense amendments introduced by Republican members throughout the four-day long markup of the $3.5 trillion tax and spend reconciliation plan.
If this legislation is signed into law, it will raise taxes on working families and small businesses. It will make America less globally competitive, increase the cost of goods and services, and eliminate jobs including high-paying manufacturing jobs.
Below are ten commonsense amendments that Democrats rejected.
1. Democrats voted against ensuring the corporate rate is competitive with China and the rest of the world. Specifically, they rejected Rep. Kevin Brady’s (R-Texas) “Build Back Better in America, not China” amendment which would have prevented several tax hikes that will put America at a competitive disadvantage with foreign competitors. Under the Democrats’ plan, the U.S. federal and state corporate tax rate would be 31 percent, significantly higher than China’s corporate tax rate is 25 percent and the OECD average rate in 23.5 percent.
2. Democrats voted in support of a tax break for well-funded, elite universities. Democrats voted against Rep. Tom Reed’s (R-N.Y.) “No Tax Shelters for Ivy League Elites” which would have prevented $2.5 billion loophole for wealthy Ivy League universities. This provision effectively rewards the institutions with the largest endowments.
3. Democrats opposed an amendment preventing a high global minimum tax on U.S. businesses before ensuring China enacts a minimum tax of its own. Rep. Devin Nunes’s (R-Calif.) "Stop Shipping Jobs to China" amendment would have prevented increasing taxes on the global intangible low-taxed income (GILTI) regime until China enacts a global minimum tax of its own. It also would have prevented the GILTI rate from being a rate higher than China’s.
4. Democrats voted against protecting Americans from being harassed and targeted by the IRS. Rep. Mike Kelly’s (R-Pa.) "Protecting Families and Small Businesses from a Supercharged IRS" amendment would have prevented the IRS from creating a new reporting regime that forces the disclosure of any business or personal account that exceeds $600. Not only would this include the bank, loan, and investment accounts of virtually every individual and business, but it would also include third-party providers like Venmo, CashApp, and PayPal.
5. Democrats voted in favor of reinstating tax shelters for blue-state millionaires instead of funding cancer research. Rep. Adrian Smith’s (R-Neb.) "Cancer Cures Instead of SALT Tax Shelters for Millionaires" amendment would have funded cancer research and extend middle-class tax cuts instead of reinstating the full SALT tax deduction for wealthy people in blue states, a $400 billion tax break that many Democrats want to include in the reconciliation bill.
6. Democrats voted in favor of a $96 billion tobacco & vaping tax hike that will hit low- and middle-income Americans. Rep. Drew Ferguson’s (R-Ga.) “Preserving Personal Choices” amendment would have prevented this $96 billion tax hike. Increasing tobacco taxes is a clear violation of President Biden’s pledge to not raise taxes on anyone making less than $400,000 a year.
7. Democrats refused to ensure that their tax increases wouldn't reduce U.S. employment and investment. Rep. Mike Kelly’s (R-Penn) “Return to Full Employment in America” amendment would have required the Treasury Secretary certify that Democrats’ tax increases won’t reduce U.S. employment and investment. Many of the tax hikes being pushed by Democrats will harm the economy. For instance, 70 percent of the corporate income tax is borne by workers through lower wages and less jobs, while increasing the capital gains rate will reduce investment and slow growth.
8. Democrats voted against ensuring their drug price controls wouldn't shift pharmaceutical investment and jobs to China. Rep. Darin LaHood’s (R-Ill.) "Standing Up to China" amendment would require H.R. 3, legislation to impose a 95% tax on medicines and foreign reference pricing wouldn’t shift medical innovation and manufacturing jobs to China. Nationwide, the pharmaceutical industry directly or indirectly accounts for over four million jobs across the U.S and in every state, according to research by TEconomy Partners, LLC. The average annual wage of a pharmaceutical worker in 2017 was $126,587, which is more than double the average private sector wage of $60,000.
9. Democrats refused to certify that new regulations and tax hikes on the energy sector wouldn't lead to increased oil and gas production by foreign competitors. Rep. Jodey Arrington’s (R-Texas) “No Giveaways to Polluting Countries” amendment would have required that the Treasury Secretary certify that Democrats' hikes on oil and gas would not reduce U.S. energy independence and increase oil and gas production in Russia, China, Venezuela, or Iran. The oil and gas industry supports 11.3 million total American jobs across all 50 states and accounts for nearly 8 percent of GDP. In 2017, jobs in the oil and gas sector paid an average salary of $102,000, 85 percent higher than the average private sector salary.
10. Democrats voted against keeping intellectual property and jobs in the United States. Rep. Kevin Hern’s (R-OK) “Offshore Tax Haven Reduction” amendment would have struck down the repeal of the deduction for foreign-derived intangible income (FDII). If this tax increase goes into effect, it will ship American intellectual property and jobs overseas, creating long-term economic damage to the country. It will undermine American competitiveness and benefit foreign countries like China that provide extensive and generous tax credits and subsidies to incentivize IP.
Photo Credit: "US Capitol Dome on an Overcast Evening" by John Brighenti licensed under CC BY 2.0
More from Americans for Tax Reform
Dems Set Biden Up to Break Tax Pledge
Congressional Democrats are pushing a series of tax increases that hit households making less than $400K, setting up President Biden to break his tax pledge.
Biden and Vice President Harris made the $400K tax pledge a key part of the 2020 presidential campaign, clearly stating the commitment at least 60 times.
Below is the video and written documentation of this promise:
Click here for the short version of the video with 13 examples of the pledge.
Click here for the full version of the video with every instance of the pledge.
Click here for a 45-second sizzle reel of the pledge.
The full written documentation of the pledge can be found below:
Joe Biden on CNBC, May 22, 2020: "Nobody making under 400,000 bucks would have their taxes raised. Period. Bingo."
Joe Biden on ABC News, August 23, 2020:
David Muir, ABC News: "So, no new taxes, $400,000 and down?"
Biden: "No new taxes. There would be no need for any."
Joe Biden in Kenosha, Wisconsin on September 3, 2020: "I pay for every single thing I’m proposing without raising your taxes one penny. If you make less than 400 grand, you’re not going to get a penny taxed."
Joe Biden during a WFLA Interview on September 15, 2020: “Nobody making less than $400,000 have to pay a penny more in tax under my proposals.”
Joe Biden during a Telemundo Interview on September 15, 2020: "I'm not going to raise taxes on anybody making less than 400,000.”
Joe Biden on Twitter, September 17, 2020: “If you make under $400,000, you will not pay a penny more in taxes when I'm president."
Joe Biden on Twitter, September 17, 2020: "No surprise, Donald Trump is lying about my tax plan. Here’s the truth about how I’ll make corporations pay their fair share while ensuring Americans making under $400,000 don’t pay a penny more."
Joe Biden in Hermantown, Minnesota on September 18, 2020 "And I’ll do it without raising anyone’s taxes if you make less than $400,000 a year."
Joe Biden in Manitowoc, Wisconsin on September 21, 2020: “Under my plan nobody making less than 400,000 bucks -- and I don’t make it and you don’t make it, I don’t think -- in this country will see their taxes go up.”
Joe Biden in Greensburg, Pennsylvania on September 30, 2020: “And we’re going to do it without asking anyone who makes under $400,000 a year to pay one more penny in taxes. Guaranteed. My word on it.”
Joe Biden in Jonestown, Pennsylvania on September 30, 2020: “We’re going to do it all without raising a penny in taxes for anybody who makes less than $400,000 a year.”
Joe Biden in Grand Rapids, Michigan on October 2, 2020: “Anyone making less than $400,000 a year won’t pay a penny more."
Joe Biden in Miami, Florida on October 5, 2020: “I’m not going to raise taxes on anyone who makes less than $400,000 a year. You won’t pay a penny more. I guarantee you.”
Kamala Harris during Vice Presidential Debate on October 7, 2020: “Joe Biden has been very clear. He will not raise taxes on anybody who makes less than $400,000 a year.”
Joe Biden on Twitter, October 7, 2020: “Let me be clear: A Biden-Harris Administration won't increase taxes by a dime on anyone making less than $400,000 a year.”
Joe Biden in Las Vegas, Nevada on October 9, 2020: “It’s not going to raise a penny in tax for anyone making less than $400,000 a year. Not a penny.”
Kamala Harris on Twitter, October 9, 2020: “Joe Biden has been very clear: he will not raise taxes on anybody who makes less than $400,000 a year.”
Joe Biden in Erie, Pennsylvania on October 10, 2020: “I’m not going to raise taxes on anybody making less than 400 grand.”
Joe Biden in Toledo, Ohio on October 12, 2020: “I’m not going to raise taxes on anyone who makes less than $400,000 a year."
Joe Biden in Pembroke Pines, Florida on October 13, 2020: “I’m not going to raise taxes on a single solitary American making less than $400,000 a year. You won’t pay a penny more. It’s a guarantee.”
Joe Biden on Twitter, October 15, 2020: “Let me be very clear: If you make under $400,000 you won’t pay a penny more in taxes under my administration.”
Joe Biden ABC Town Hall on October 15, 2020:
Anthony Archer (Voter): "Thank you, Mr. Vice President. You stated that anyone making less than $400,000 will not see one single penny of their taxes raised."
Biden: "That’s right."
Joe Biden in Michigan on October 16, 2020: “No one who makes less than $400,000 a year will pay a penny more.”
Kamala Harris in Orlando, Florida on October 19, 2020: “Joe Biden will not increase taxes on anyone who makes less than $400,000 a year, period.”
Kamala Harris in Jacksonville, Florida on October 19, 2020: “Taxes will not be raised on anyone making less than $400,000 a year.”
Kamala Harris in Milwaukee, Wisconsin on October 20, 2020: “We will not increase taxes for anybody making under $400,000 a year.”
Kamala Harris in Asheville, North Carolina on October 21, 2020: “Joe Biden is saying, I’m not going to raise taxes on anybody who makes less than $400,000 a year.”
Kamala Harris in Atlanta, Georgia on October 23, 2020: “Which is why Joe Biden and I are saying, “One, taxes will not be raised on anyone making less than $400,000 a year.”
Joe Biden in Bucks County, Pennsylvania on October 24, 2020: “None of you will have your taxes raised. Anyone making less than $400,000 will not see a penny in taxes raised."
Joe Biden on CBS 60 Minutes, October 25, 2020:
Biden: “Nobody making less than $400,000 will pay a penny more in tax under my proposal.”
Norah O'Donnell, CBS: "That's a promise?"
Biden: "That's a guarantee. A promise. I give you my word as a Biden. That's an absolute guarantee."
Joe Biden in Atlanta, Georgia on October 27, 2020: “I guarantee you -- no matter what you hear this president lying about -- no one making less than $400,000 a year will have one penny in taxes raised. Not one penny. It’s a guarantee.”
Kamala Harris in Reno, Nevada on October 27, 2020: "Joe Biden says we’re not going to increase taxes on anyone making less than $400,000 a year."
Kamala Harris in Las Vegas, Nevada on October 27, 2020: “Joe Biden says, that we’re not going to raise taxes on anyone making less than $400,000 a year."
Joe Biden in Atlanta, Georgia on October 27, 2020: “No one making less than $400,000 a year will have one penny in taxes raised. Not one penny. It's a guarantee.”
Kamala Harris in Phoenix, Arizona on October 28, 2020: “We are not going to raise taxes on anyone making under $400,000 a year."
Kamala Harris in Tucson, Arizona on October 28, 2020: “Joe Biden who says, 'You want to deal with the economy, then one, we will not raise taxes on anyone making less than $400,000 a year.'"
Joe Biden in Broward County, Florida on October 29, 2020: “We can do it without raising taxes on a single person making less than 400,000 bucks a year.”
Joe Biden in Tampa Bay, Florida on October 29, 2020: “I guarantee you -- my word as a Biden -- no one making less than $400,000 will pay a single penny more in taxes. Not a penny.”
Kamala Harris in Fort Worth, Texas on October 30, 2020: “Joe Biden is committed to not raising taxes ever on anyone making less than $400,000 a year.”
Joe Biden in Des Moines, Iowa on October 30, 2020: “We can do it without raising a penny tax on the middle class. I guarantee you -- give you my word as a Biden -- no one making less than $400,000 a year will see a penny in their taxes raised, no one.”
Kamala Harris in McAllen, Texas on October 30, 2020: “Let’s deal with the economy and not raise taxes for anyone who makes less than $400,000.”
Joe Biden in St. Paul, Minnesota on October 30, 2020: “I promise you, you have my word, if you make less than $400,000 a year, you won’t pay a penny more in taxes.”
Joe Biden in Milwaukee, Wisconsin on October 30, 2020: “I give you my word as a Biden, if you make less than $400,000 -- if I’m elected president -- you’re not going to see a penny of your taxes go up, not a penny.”
Kamala Harris in Houston, Texas on October 30, 2020: “Joe Biden says we will not raise taxes on anyone that makes less than $400,000 a year.”
Kamala Harris in Fort Worth, Texas on October 30, 2020: “Which is why Joe Biden is committed to not raising taxes ever on anyone making less than $400,000 a year.”
Joe Biden in Detroit, Michigan on October 31, 2020: “Under my plan if you make less than $400,000 I guarantee you're not going to pay a penny more in taxes.”
Joe Biden in Flint, Michigan on October 31, 2020: “Under my plan, if you make less than $400,000 a year, you’re not going to pay a penny in additional taxes.”
Joe Biden on Twitter, November 1, 2020: "Under my tax plan, no one making under $400,000 will see their taxes go up."
Joe Biden in Cleveland, Ohio on November 2, 2020: “Under my plan, if you make less than $400,000, you won’t pay a single penny more in taxes. You have my word on it.”
Joe Biden in Beaver County, Pennsylvania on November 2, 2020: “We’re not going to raise taxes on anybody making less than 400,000 bucks a year.”
Joe Biden in Pittsburgh, Pennsylvania on November 2, 2020: "Under my plan I commit to you no one making less than 400 grand is going to see a penny in taxes raised."
Kamala Harris in Pittsburgh, Pennsylvania on November 2, 2020: “Let me be clear, Joe and I will not increase taxes on anyone making under $400,000 a year, period.”
Joe Biden in Pittsburgh, Pennsylvania on November 2, 2020: “Under my plan, as Kamala said, if you make less than 400,000 bucks, you’re not going to pay a penny more in taxes.”
Kamala Harris in Detroit, Michigan on November 3, 2020: “That’s why Joe says we’re not passing any taxes on anybody making less than $400,000 a year."
Kamala Harris on Twitter, November 11, 2020: “As president, @JoeBiden will make corporations and the wealthiest finally pay their fair share—and he won’t ask a single person making under $400,000 per year to pay a penny more in taxes."
Kamala Harris on Twitter, November 21, 2020: “Let’s be clear: if you make under $400,000 a year, you won’t pay a penny more in taxes under a Biden-Harris administration.”
Joe Biden during an ABC News interview on March 16, 2021: "If you make more than -- less than $400,000, you won't see a fed -- one single penny in additional federal tax."
Joe Biden during remarks in Washington, D.C. on April 2, 2021: "And it won’t raise a penny tax on a family making less than $400,000 a year — no federal tax, no addition."
Joe Biden during remarks in Washington, D.C. on April 7, 2021: "I will not impose any tax increases on people making less than $400,000 a year."
Joe Biden during a speech in Washington, D.C. on April 28, 2021: "I will not impose any tax increases on people making less than $400,000 a year.
Joe Biden during a speech in Portsmouth, Virginia on May 3, 2021: "The reason I’m bothering to do this is I keep hearing out in the press, 'Biden is going to raise your taxes.' Anybody making less than $400,000 a year will not pay a single penny in taxes."
Photo Credit: By Gage Skidmore licensed under CC BY-SA 2.0
9 Facts About The Democrats $96 Billion Tobacco & Vaping Tax Grab
- Congressional Democrats plan to double the Federal Tobacco Tax – a clear violation of President Biden’s pledge to not raise taxes on anyone earning under $400,000
- This will disproportionately harm the poorest Americans and increase income inequalities: 72% of smokers are low-income earners. In some states poorer smokers already spend one quarter of their income on tobacco
- Tobacco Tax hikes have been shown to do nothing to reduce smoking rates
- Tobacco tax hikes have been proven to lead to more smuggling by international criminal syndicates, often with terrorist links, which the State Department calls “a threat to national security”
- Democrats also plan to increases taxes on people trying to quit smoking though e-cigarettes, smokeless tobacco, heated tobacco, or nicotine pouches by thousands of percent, in some cases by thousands of percent.
- New taxes will be imposed on products authorized by the FDA to be marketed as putting people “at a lower risk of mouth cancer, heart disease, lung cancer, stroke, emphysema, and chronic bronchitis” and "help addicted adult smokers transition away from combusted cigarettes and reduce their exposure to harmful chemicals".
- A new vaping tax would make some e-cigarettes more expensive than combustible tobacco – despite them being 95% safer and recommended by over 50 of the world’s leading medical bodies.
- A large-scale analysis from the US’s top cancer researchers coordinated by Georgetown University Medical Center found that 6.6 million American lives can be saved if a majority of cigarette smokers switched to vaping.
- Academic modelling has shown that the vaping tax will lead to more than 2.75 million additional American smokers
Photo Credit: Judy Gallager
More from Americans for Tax Reform
Dem Bill Gives Tax Cuts to Reporters at "Local Newspapers" With Up to 750 Employees
Congressional Democrats have proposed a tax credit for "local news journalists" at newspapers with up to 750 employees. Yes, a special tax cut for reporters.
The Democrats' multi-trillion-dollar tax and spend plan contains an employment tax credit of up to $12,500 per person for reporters at “eligible” newspapers. As a section-by-section analysis from the Ways and Means Committee details:
“The credit amount is equal to 50% of wages for each of the first 4 calendar quarters, and 30% of wages for each calendar quarter thereafter. Eligible local newspaper publisher is any employer that is in the trade or business of publishing a local newspaper that serves the needs of a regional or local community and who employs no more than 750 employees.”
This special reporter tax carve-out would amount to $1.3 billion. Beneficiaries would likely include many established daily newspapers and left-leaning alternative weeklies, and such papers as The Malibu Times, Aspen Times and the Vineyard Gazette serving the progressive playground of Martha’s Vineyard.
The bill also provides a $1,500 tax credit for the purchase of an "e-bike" costing up to $8,000. So if you are a "local" journalist in the market for an e-bike, your ship has come in.
Photo Credit: "Journalist with pipe" by C.A.D.Schjelderup licensed under CC BY-SA 4.0
Study: Democrats’ $3.5 Trillion Bill Will Lead to Up To 324 Fewer New Medicines
Democrats’ drug price controls in the $3.5 trillion blowout would lead to 167 to 324 fewer new drugs, according to an issue brief by Tomas J. Philipson and Troy Durie at the University of Chicago.
Within their $3.5 trillion reconciliation package, Democrats have included H.R. 3, legislation that government price controls on American medical innovation. Specifically, it creates a 95 percent excise tax on manufacturers and imposes an international reference pricing scheme that directly imports foreign price controls into the United States.
According to Philipson and Durie’s brief, this provision would lead to a 29.2 to 60 percent reduction in R&D spending, which translates to 167 to 324 fewer new drug approvals:
“We calibrate that the price controls implemented in the United States would lead to a 29.2 to 60.0 percent reduction in R&D from 2021 to 2039. This equates to $952.2 billion to $2.0 trillion in lost R&D spending and 167 to 342 fewer new drug approvals during this period. This means annual new drug approvals will be 11.7 to 24.0 percent lower per year from 2021 to 2029 and 45.0 to 92.4 percent lower from 2030 to 2039.”
Though these estimates are significantly higher than the CBO’s, the authors explain that their estimate is conservative:
“We discuss how these findings, as well as findings from other studies, differ from CBO (2019), which finds only 37 fewer new drug approvals over this time period, which is 550.2 to 1,024 percent lower than our estimates. Our estimates are conservative as the entire evidence base is considered and not only the evidence base for the more R&D sensitive US market.”
These results are severe, but not surprising. H.R. 3 arbitrarily sets the prices of medicines based off the prices in six countries which utilize socialist price controls in their healthcare systems: Australia, Canada, the United Kingdom, France, Germany, and Japan.
These countries’ access to care is, inevitably, lower. For instance, Canadian patients wait an average of 19.8 weeks from referral to treatment. In the UK, at any one time, 4.5 million patients were waiting to see a doctor or receive care. By comparison, 77 percent of Americans are treated within four weeks of referral, while just 6 percent wait more than two months.
Further, Americans have access to far more medicines than other countries. According to research by the Galen Institute, 290 new medical substances were launched worldwide between 2011 and 2018. The U.S. had access to 90 percent of these cures. By comparison, the United Kingdom had access to 60 percent of medicines, Japan had 50 percent, and Canada had just 44 percent.
In trying to be more like foreign countries with socialist policies, Democrats will restrict Americans’ access to life-improving and life-saving medicines. Hundreds of new cures will not be developed in the future which will harm American patients and the healthcare system.
Photo Credit: "Medicine" by The Focal Project is licensed under CC BY-NC 2.0
More from Americans for Tax Reform
More States Are Reducing Barriers To Employment
Over the past two years, lawmakers in various state capitals have enacted a new reform that will make occupational licensing requirements less of a barrier to employment. This new reform is known as universal license recognition (ULR). Arizona began this reform movement when it passed its ULR law in 2019. As of now, at least sixteen states have enacted it, the most recent being Mississippi in March (while four of these 16 laws had been on the books prior to 2019, this reform movement took off in earnest after the passage of the Arizona bill in 2019).
What are ULR laws? They are laws by which states recognize occupational licenses granted by other states. This means that if a worker in a licensed occupation moves to a new state that has passed universal recognition legislation, they can get to work right away. This gives workers greater flexibility and makes states with a ULR law more attractive to new residents.
ULR laws in various states tend to be similar, but not identical. According to Iris Hentze at the National Conference of State Legislatures, two of the most common requirements for recognition are “being licensed and in good standing with your home licensing board” and that the applicants “pay applicable fees and...undergo background checks.” While workers will need to eventually get a new license for the state they’ve moved to, in the 16 states with ULR laws “the process is shorter for licensed workers than it is for those seeking a license for the first time.”
One of the most significant differences between different ULR laws is whether they require “substantial equivalence” or “scope of practice” for recognition. According to Hentze at NCSL, states using “substantial equivalence” require that “that the license an applicant holds in his or her home jurisdiction be substantially equivalent to or exceed its own requirements” to have their license recognized in their new state of residence.
States using “scope of practice” on the other hand require the applicant to be “currently licensed or certified by another state to work in an occupation with a similar scope of practice”. According to the America Legislative Exchange Council (ALEC), scope of practice is “a more direct comparison of whether a license is to perform the same day-to-day duties of the job itself.”
According to the Goldwater Institute, since “Arizona became the first state to enact universal recognition,” it has so far helped 3,000 professionals get to work in Arizona.
The push for universal license recognition was further spurred on when the COVID-19 pandemic showed how licensing requirements stifle worker mobility, particularly when additional healthcare workers were needed in some states more than others. According to ALEC, to meet demand “states like New York...issued temporary executive orders recognizing licenses for out-of-state healthcare workers.”
Since then, several more states have passed Universal Recognition laws, bringing the total to sixteen. Lawmakers in other states have introduced ULR that did not pass in 2021, but can be considered in future legislative session. According to the Goldwater Institute’s Heather Curry, “this session, more than 15 states have introduced legislation to extend out-of-state license recognition to skilled professionals.”
In a few short years, we’ve gone from zero to 16 states with ULR laws, four of them enacted in 2021 alone, with still more debating similar measures. This idea is catching on, as more and more states realize that letting workers do their jobs with minimal hindrance brings plenty of benefits and few, if any, costs.
Photo Credit: "Utility Worker" by Dori is licensed under CC BY-SA 3.0.
More from Americans for Tax Reform
Norquist and Kudlow Discuss the Harms of Dem $3.5 Trillion Tax-and-Spend Blowout
ATR President Grover Norquist was guest on Fox Business Network's Kudlow show today for a discussion of the $3.5 trillion reconciliation bill being pushed by congressional Democrats.
Norquist noted that the burden of the proposed corporate tax rate increase will fall on workers:
"The American people get that when you have higher corporate taxes, that is largely paid for by lower wages and lower wage increases in the future. It is also paid for in higher prices and in less competitive production in the United States compared to China or Europe."
Kudlow also played a portion of ATR's upcoming television ad, pointing out the problems with the enormous tax and spending proposal.
VIDEO: JCT Confirms Dem Corporate Tax Hike Hits Workers
Today the Joint Committee on Taxation confirmed that corporate tax rate hikes diminish the wages of workers. Testifying before the House Ways & Means Committee, JCT Chief of Staff Thomas A. Barthold said:
"Literature suggests that 25% of the burden of the corporate tax may be borne by labor in terms of diminished wage growth."
Congressman Mike Kelly (R-Pa.) then asked, "Who is going to bear the brunt of this [Democrat corporate income tax hike]?
Barthold replied:
"Labor. Laborers."
Economists across the political spectrum agree that workers bear the brunt of corporate tax increases. And 25% is on the very low end.
According to the Stephen Entin of the Tax Foundation, labor (or workers) bear an estimated 70 percent of the corporate income tax:
"Over the last few decades, economists have used empirical studies to estimate the degree to which the corporate tax falls on labor and capital, in part by noting an inverse correlation between corporate taxes and wages and employment. These studies appear to show that labor bears between 50 percent and 100 percent of the burden of the corporate income tax, with 70 percent or higher the most likely outcome."
A 2012 paper at the University of Warwick and University of Oxford found that a $1 increase in the corporate tax reduces wages by 92 cents in the long term. This study was conducted by Wiji Arulampalam, Michael P. Devereux, and Giorgia Maffini and studied over 55,000 businesses located in nine European countries over the period 1996-2003:
"We identify this direct shifting through cross-company variation in tax liabilities, conditional on value added per employee. Our central estimate is that $1 of additional tax reduces wages by 92 cents in the long run. The incidence of a $1 fall in value added is smaller, consistent with our wage bargaining model."
A 2015 study by Kevin Hassett and Aparna Mathur found that a 1 percent increase in corporate tax rates leads to a 0.5 percent decrease in wage rates. The study analyses 66 countries over 25 years and concludes that workers could see a greater reduction in wages than the federal government raises in new revenue from a corporate income tax increase:
"We find, controlling for other macroeconomic variables, that wages are significantly responsive to corporate taxation. Higher corporate tax rates depress wages. Using spatial modelling techniques, we also find that tax characteristics of neighbouring countries, whether geographic or economic, have a significant effect on domestic wages."
A 2006 study by William Randolph of the Congressional Budget Office found that 74% of the corporate tax is borne by domestic labor:
"Burdens are measured in a numerical example by substituting factor shares and output shares that are reasonable for the U.S. economy. Given those values, domestic labor bears slightly more than 70 percent of the burden of the corporate income tax."
A 2007 study by Alison Felix estimated that a 1 percentage point increase in the marginal corporate tax rate decreases annual wages by 0.7 percent. She concluded that the wage reductions are over four times the amount of collected corporate tax revenue:
"The empirical results presented here suggest that the incidence of corporate taxation is more than fully borne by labor. I estimate that a one percentage point increase in the marginal corporate tax rate decreases annual wages by 0.7 percent. The magnitude of the results predicts that the decrease in wages is more than four times the amount of the corporate tax revenue collected."
A 2012 Harvard Business Review piece by Mihir A. Desai notes that raising the corporate tax lands “straight on the back” of the American worker and will see a decline in real wages:
"Because capital is mobile, high tax rates divert investment away from the U.S. corporate sector and toward housing, noncorporate business sectors, and foreign countries. American workers need that capital to become more productive. When it’s invested elsewhere, real wages decline, and if product prices are set globally, there is no place for the corporate tax to land but straight on the back of the least-mobile factor in this setting: the American worker."
Even the left-of-center Tax Policy Center estimates that 20 percent of the burden of the corporate income tax is borne by labor:
"In calculating distributional effects, the Urban-Brookings Tax Policy Center (TPC) assumes investment returns (dividends, interest, capital gains, etc.) bear 80 percent of the burden, with wages and other labor income carrying the remaining 20 percent."
More from Americans for Tax Reform
Top FTC Aide Confirms The Left’s Antitrust Crusade Goes Beyond Big Tech
A top aide to Federal Trade Commissioner Lina Khan has confirmed the obvious – no industry is safe from the left’s antitrust crusade.
In a May interview with The Marker, FTC attorney adviser Shaoul Sussman says that Congress has made its mind up when it comes to breaking up America’s largest companies. “All of these companies are going to be on the butcher’s table,” Sussman says, adding that “I’m not sure if they will be broken up in the next few years, but from the perspective of legislation, their judgment has been written.”
Of course, the antitrust debate on Capitol Hill is far from over. The most recent antitrust legislation, spearheaded by Rep. David Cicilline (D-R.I.), limped out of a 29-hour markup with robust conservative and moderate Democrat opposition. A group of Democrats called on House Speaker Nancy Pelosi (D-Calif.) to slow down the Cicilline package, and House Majority Leader Steny Hoyer (D-Md.) said that the sloppily drafted legislation was far from ready for a vote on the House floor.
In a subsequent interview published on Sunday, Sussman said that he hopes Congress makes sweeping changes to antitrust law that go beyond technology companies, specifically highlighting “monopolies in agriculture, health, and telecommunications” and calling for more “systemic legislation.” Sussman is currently one of Khan’s only antitrust advisers, and was conveniently exempted from the FTC’s agency-wide gag order because he gave the interview before he started advising Khan.
This is a stark confirmation that the left’s antitrust plot goes far beyond Big Tech. The left’s true goal is to give the Biden Administration sweeping new power to reshape entire industries. Instead of keeping antitrust law focused on harm to consumers, the left wants to weaponize it as a vehicle for their woke social agenda.
As we head into the fall, Republican lawmakers should hold firm and reject any proposals that politicize antitrust law or give unelected bureaucrats even more power to control the economy.
Photo Credit: Kurt Kaiser, CC0, via Wikimedia Commons
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