Alex Hendrie

8 Facts About the GOP Tax Cuts That Dems Don’t Want to Talk About

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Posted by Alex Hendrie on Tuesday, April 17th, 2018, 3:34 PM PERMALINK

[For a PDF version, please click here]

1. Thanks to Tax Reform, 90 Percent of Wage Earners Are Seeing Increased Take-home Pay:

  • A family of four with annual income of $73,000 (median family income) will see a tax cut of more than $2,058, a 58 percent reduction in federal taxes.
     
  • A single parent with one child with annual income of $41,000 will see a tax cut of $1,304, a 73 percent reduction in federal taxes.
     
  • Married small business owners with annual income of $100,000 will see a tax cut of $2,603, a 24 percent reduction in federal taxes.

 

2. Americans at Every Income Level Are Seeing Significant Tax Reduction Because of the Tax Cuts and Jobs Act:

  • 90 percent of taxpayers with annual income of between $40,000 and $64,000 will see an average federal tax cut of $810 in 2018.
  • 91 percent of taxpayers with annual income between $64,000 and $108,000 will see an average federal tax cut of $1,400 in 2018.
     
  • 87 percent of taxpayers with annual income between $108,000 and $232,000 will see an average federal tax cut of $2,710 in 2018.
     

3. Thanks to Tax Reform, Families and Individuals Across the Country Will See A Fairer, Simpler Tax Code Starting 2018:

  • The Tax Cuts and Jobs Act doubled the standard deduction for an individual from $6,000 to $12,000 and for a family from $12,000 to $24,000. 105,055,150 families and individuals took the standard deduction in 2015.​
    • Because of tax reform, 93 percent of filers will now take the standard deduction, resulting in significant simplification of the tax code.

 

  • The Tax Cuts and Jobs Act raised the threshold of the Alternative Minimum Tax so fewer taxpayers are forced to comply with the provision. 4,464,430 families and individuals paid the Alternative Minimum Tax in 2015.
     
  • The Tax Cuts and Jobs Act doubled the child tax credit from $1,000 to $2,000 per child. 22,324,780 families took the Child Tax Credit in 2015.

 

4. Thanks to Tax Reform, American Families Will See Relief from the Obamacare Individual Mandate Tax Penalty.

  • Obamacare imposed a tax penalty of $695 for an individual and $2,085 for a family of four for failing to buy “qualifying” health insurance as defined by the federal government. The Tax Cuts and Jobs Act repeals this unfair tax.
     
  • The Obamacare individual mandate tax penalty is one of the most regressive taxes in the code as it disproportionately impacts low and middle-income families:

 

5. Business Confidence Is at an All-Time High Following Tax Reform:

  • Small business optimism has been at an all-time high since early 2017:
    • According to a survey by the National Federation for Independent Businesses, small business owners are seeing historically high business conditions and expected sales. Hiring and spending on new capital are also extremely high levels.
       
  • Optimism amongst manufacturers is at an all-time high because of tax reform:
    • According to a survey by the National Association of Manufacturers, 93.5 percent of manufacturers registered a positive outlook in the first quarter of 2018, following 94.6 percent positive outlook in December 2017.
    • Small manufacturers recorded a 94.5 percent positive outlook in Q1 of 2018.
       
  • Optimism amongst middle market businesses is at an all-time high:
    • 73 percent of middle market executives expect a stronger economy, according to the RSM US Middle Market Business Index.
    • 58 percent of middle market companies plan to hire more workers and 63 percent plan to increase wages in the Q2 or Q3 of 2018.
    • 45 percent have already increased hiring and almost 50 percent have increased wages in Q1 of 2018.

 

6. Businesses Large and Small Have Responded to Tax Reform by Announcing Pay Raises, Bonuses, 401(k) Match Increases, Increased Charitable Contributions and Workforce Development Programs. For Example:

  • Anfinson Farm Store – a family owned business in Cushing, Iowa (population 223) – has given its employees a $1,000 tax reform bonus and raised wages by 5 percent. 
     
  • AT&T has provided 200,000 U.S. employees with a $1,000 tax reform bonus. 
     
  • Kentucky-based Turning Point Brands, Inc. will give 107 employees a $1,000 tax reform bonus.
     
  • Wichita Railway Services is giving its five employees tax reform bonuses of between $3,000 and $6,000.
     
  • Boeing announced $300 million to be spent on charitable donations, workforce development and infrastructure improvement because of tax reform.
     
  • Five Senses Spa, Salon and Barbershop based in Peoria, Illinois gave $500 tax reform bonuses to its 20 employees.
     
  • Walmart is increasing its base employee wage to $11 per hour, is giving tax reform bonuses of up to $1,000, is expanding maternity and parental leave and giving a $5,000 allowance for adoption expenses.
     
  • Heating and cooling company AAON — with facilities in Tulsa, Oklahoma and Longview, Texas — gave its 2,000 employees a $1,000 tax reform bonus.
     
  • Tampa-based Spellex Corporation gave its 26 employees $1,000 tax reform bonuses.
     
  • Comcast is giving $1,000 tax reform bonuses to 100,000 employees.
     
  • Visa is doubling its 401(k) employee contribution match to a maximum of 10 percent of employee pay because of tax reform.

 

7. Utility Companies are Responding to Tax Reform by Lowering Rates by $4.5 billion for 92 million customers. For example:

  • Illinois-based ComEd is passing $200 million worth of savings to consumers due to tax reform.
     
  • Baltimore Gas & Electric is passing $82 million in annual savings to customers due to tax reform.
     
  • Arizona Public Service has requested a $119 million bill reduction for customers due to tax reform.
     
  • Consumers Energy based in Jackson, Michigan will lower customer bills by approximately $200 million because of tax reform.
     
  • Georgia Power will provide $1.2 billion in benefits because of tax reform.
     

8. Democrats Have Proposed At Least One Trillion Dollars in Higher Taxes Including:

  • A $139 billion income tax increase on individuals.
     
  • An increase in the Alternative Minimum Tax, a tax hike of $429 billion.
     
  • An increase in the Death Tax totaling $83 billion.
     
  • A $359 billion tax increase on businesses.

 

[For a PDF version, please click here]

Photo Credit: Gage Skidmore

More from Americans for Tax Reform


ATR Supports H.R.5281, the "Global Trade Accountability Act"

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Posted by Alex Hendrie on Monday, March 19th, 2018, 10:38 AM PERMALINK

Americans for Tax Reform released a letter last week in support of H.R. 5281, the "Global Trade Accountability Act." This legislation, sponsored by Congressman Warren Davidson (Ohio-08), reasserts Congressional oversight and accountability over trade-related decisions made by the Executive Branch. 

While presidents are granted the power to negotiate international trade agreements, this historically has not included the authority to impose tariffs. Over the years, Congress has ceded its authority to the president by allowing the executive to raise tariffs and restrict imports unilaterally.

Tariffs are taxes, and the new tariffs posed by the Trump Administration threaten to undercut the gains from recent tax reform legislation. It is more important than ever that Congress reasserts its authority over trade policy to avoid new tariffs that will damage the U.S. economy. 

The full letter can be viewed here and below: 

Dear Congressman Davidson:

I write in support of H.R.5281, the Global Trade Accountability Act. This legislation reasserts Congressional oversight and accountability over trade-related decisions made by the Executive Branch. All members of Congress should support your important legislation.

Specifically, the Global Trade Accountability Act requires the president to secure a joint resolution from Congress before any “unilateral trade action” – including tariffs – can take effect.

While presidents are granted the power to negotiate international trade agreements, this historically has not included the authority to impose tariffs.  Instead, the power to impose tariffs and regulate foreign commerce is granted to Congress under Article 1, Section 8 of the United States Constitution.

Over the years, Congress has ceded its authority to the president by allowing the executive to raise tariffs and restrict imports unilaterally.  Most recently, President Trump proposed imposing tariffs on steel and aluminum as a negotiating tactic to ensure American businesses and families have better trade deals.

While this is the right goal, imposing tariffs is the wrong solution. Tariffs are taxes, and increasing them will, on net, hurt American manufacturing, its workers and their families.

In the case of steel and aluminum tariffs, while there will be some winners – in this case the domestic industries that manufacture steel and aluminum – there will be far more losers. Every industry that uses these products as an input will see higher prices, leading to increased costs for consumers, and lower wages and fewer jobs for American workers.  Ironically, countries without these tariffs will be advantaged over the U.S.

Imposing tariffs risks starting a civil war within the U.S. economy by picking winners and losers among American workers and businesses. 

Consumers will be clear losers as they will see higher prices on everyday products like cars, soda, and beer. But the real trade war we have to fear is the war between different sectors of the U.S. economy. 

Tariffs also threaten to undercut the increased wages and greater take-home pay coming from tax reform. Because of tax reform, ninety percent of Americans are seeing more money in their paychecks, while at least four million workers are seeing higher salaries or bonuses.

Given the potential economic damage that tariffs can cause to the U.S. economy, it is crucial that Congress reasserts its authority over trade policy. As such, all members of Congress should support the Global Trade Accountability Act.

Onward, 

Grover G. Norquist
​President, Americans for Tax Reform

Photo Credit: Gage Skidmore


Congress Should Pass Rep. Jenkins' H.R. 4618

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Posted by Alex Hendrie on Friday, March 2nd, 2018, 5:03 PM PERMALINK

The medicine cabinet tax, a $5.3 billion tax on middle-class families and seniors, is one of Obamacare’s many taxes. Rep. Lynn Jenkins (R-KS) has introduced commonsense, bipartisan legislation that mitigates the impact of this tax.

H.R. 4618 pauses the medicine cabinet tax for 2018 and 2019. The tax prohibits Americans from buying over-the-counter prescriptions with funds from health savings accounts (HSAs) or flexible spending accounts (FSAs). The tax affects the 20 million Americans with an HSA, and 35 million Americans with a FSA.

HSAs and FSAs allow individuals to set aside pre-tax dollars that they can later spend on their own healthcare expenses. These accounts encourage a consumer driven healthcare model that empowers American families and small businesses to make their own healthcare decisions, without government interference.

However under Obamacare, individuals are not able to use the tax benefits associated with HSAs or FSAs to purchase over-the-counter medications unless they have a prescription for this medication from a doctor. This regulation needlessly complicates the decision-making of millions of HSA and FSA users, creates an unnecessary bureaucratic burden for doctors, and restricts access to commonly used medication.

Rep. Jenkins’ bill gives HSA and FSA holders the freedom to use pre-tax dollars to purchase over the counter medicines for their household. It makes no sense to restrict the ability of millions of American families to use their hard-earned income to purchase commonly used medication.

Congress should pass H.R. 4618 as a standalone bill or as part of a comprehensive package. ATR supports H.R. 4618, and urges all members of Congress to do the same.

[Read ATR's letter in support of H.R. 4618 here]

Photo Credit: Mike Mozart


ATR Supports Rep. Roskam's "Preventing IRS Abuse and Protecting Free Speech Act"

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Posted by Alex Hendrie on Wednesday, February 7th, 2018, 1:22 PM PERMALINK

Today, ATR released a letter in support of Congressman Peter Roskam's H.R. 4916, the Preventing IRS Abuse and Protecting Free Speech Act. This important legislation prevents the IRS from targeting non-profits by prohibiting the agency from collecting the identity of donors who contribute to these organizations.

Protecting free speech is an issue that should be supported by members and groups regardless of political affiliation. The Preventing IRS Abuse and Protecting Free Speech Act should be a key part of the effort to reform the IRS and protect political free speech.

The full letter can be viewed here and below. 

Dear Congressman Roskam:

I write in support of H.R. 4916, the Preventing IRS Abuse and Protecting Free Speech Act. This important legislation prevents the IRS from targeting non-profits by prohibiting the agency from collecting the identity of donors who contribute to these organizations.

Under current law, the IRS requires non-profits to submit a Schedule B form, listing the names and addresses of their donors. While the agency collects this sensitive information, it does not use it for any purpose.

Instead, this form needlessly imposes compliance costs on both non-profits and the IRS, while also giving unelected bureaucrats a tool to chill political speech.

This concern is not hypothetical - there have been several cases where agency officials have leaked the sensitive information contained on Schedule B forms for political purposes. IRS officials have even publically doubted the need for Schedule B forms given that there is no need to collect this information, and the risk of this information becoming public.

There is a clear need to reform the IRS to better protect free speech. There have been well documented cases of the agency targeting political speech under the Obama Administration, most notably when IRS employee Lois Lerner led an effort to deny non-profit status to conservative organizations. Years after this scandal, it is unclear whether sufficient protections are in place.

For instance, a 2016 recent report by the Government Accountability Office warned that the IRS may still be unfairly targeting Americans based on political beliefs. As the report noted, serious internal control flaws mean the IRS may still be unfairly selecting Americans for an audit “based on an organization’s religious, educational, political, or other views.”

Protecting free speech is an issue that should be supported by members and groups regardless of political affiliation. Refusing to act against IRS abuse opens the door to future administrations doing the same regardless of whether they are Democrat or Republican.

The Preventing IRS Abuse and Protecting Free Speech Act should be a key part of the effort to reform the IRS and protect political free speech. All Members of Congress should support this important legislation.

Onward,

Grover G. Norquist
President, Americans for Tax Reform

Photo Credit: Gage Skidmore


ATR Opposes Increase in Passenger Facility Charge

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Posted by Alex Hendrie on Monday, February 5th, 2018, 1:29 PM PERMALINK

In letters to Senate Majority Leader Mitch McConnell and House Speaker Paul Ryan, Americans for Tax Reform wrote in opposition to an increase in the Passenger Facility Charge (PFC). While many airports have claimed that a PFC increase is necessary to continue infrastructure projects, this is simply not the case.

Airports already enjoy strong cash flow and revenue, and government taxes and fees already overburden airline passengers. Lawmakers should oppose a PFC increase whether it is considered as standalone legislation or part of a larger government funding bill. A PFC increase is not needed to finance airport investment, would fall squarely on travelers, and goes against regular order.

A copy of the letter sent to Speaker Ryan can be viewed here.

A copy of the letter sent to Leader McConnell can be viewed here. 

[See also: ATR letters to Senator Collins, Senator Daines, Senator Alexander, Senator Blunt, Senator Capito, Senator Shelby, Senator Hoeven, Senator Graham, Senator Boozman]

Photo Credit: Ron Cogswell


ATR Urges Treasury Secretary Mnuchin to Index the Calculation of Capital Gains Taxes to Inflation

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Posted by Alex Hendrie on Tuesday, January 23rd, 2018, 11:54 AM PERMALINK

ATR President Grover Norquist today urged Treasury Secretary Steve Mnuchin to index the calculation of capital gains taxes to inflation. As the letter notes, there are clear economic benefits, strong legal precedent, and historic congressional support for indexing capital gains taxes to inflation. A 1992 Office of Legal Counsel opinion on indexing capital gains to inflation can be found here

The full letter is below and can be found here

January 23, 2018

Dear Secretary Mnuchin:

I urge you to use your authority to modify the calculation of capital gains taxes to include an inflation adjustment. There are clear economic benefits, strong legal precedent, and historic congressional support for indexing capital gains taxes to inflation.

President Trump and Congress passed a bold, pro-growth tax reform bill late last year. However, because of legislative constraints, the bill could not contain every tax cut that Republicans have campaigned on. 

The next step should be Treasury delivering a significant tax cut by using its regulatory authority to add an inflation adjustment to the calculation of capital gains taxes. Treasury’s authority to enact this tax cut has been analyzed by lawyers Charles J. Cooper, Michael A. Carvin and Vincent Colatriano in a 1993 legal memo published in Virginia Tax Review, and again by Cooper and Colatriano in a 2012 legal memo published in the Harvard Journal of Law and Public Policy. 

This tax cut would have a strong, positive effect on the economy and will benefit millions of Americans that invest in the stock market, or own a 401(k) or IRA. This tax cut would also not require a Congressional Budget Office (CBO) score and would not need to be voted on by Congress.

Under current law, the capital gains tax fails to account for gains that are based on inflation. This unfairly exposes taxpayers to additional taxation. For example, an investor makes a capital investment of $1,000 in 2000 and sells that investment for $2,000 in 2017 will be taxed for a $1,000 gain at a top capital gains tax rate of 23.8 percent. After adjusting for inflation, the “true gain” is much lower – just $579. (1,000 in 2000 - $1,421 in 2017).

According to a 2013 analysis by the Tax Foundation on individual capital gains taxes, the average effective rate excluding gains from inflation between 1950 and 2012 was 42.5 percent, nearly twice today’s 23.8 percent top capital gains tax rate. 

Treasury has the legal authority to index the calculation of capital gains taxes to inflation. Under the precedent set by the Supreme Court in Chevron U.S.A. v. National Resources Defense Council (1984), the ability of Treasury to add an inflation adjustment hinges on whether a new definition of “cost” is plausible. Currently, the capital gains tax is calculated as the difference between the cost of the asset and the sale price of the asset. 

While in this context, “cost” is commonly understood to mean historical cost, this definition is not explicitly enshrined in law and Treasury has utilized regulatory discretion in the past. For instance, in 1918, Treasury decided that an asset’s cost was not strictly purchase price but was purchase price less depreciation and depletion taken by the taxpayer prior to sale.

Recent legal precedent proves that there is precedent for the term “cost” to include inflation. For instance, in Verizon v. FCC (2002) the Supreme Court affirmed that the term “cost” was ambiguous and the use of historical cost was not required by law. National Cable & Telecommunications Ass’n v. Brand X Internet Services (2005), affirmed the right of an agency to interpret an ambiguous provision of the law, while in Mayo Foundation for Medical Education & Research v. United States (2011)the Supreme Court affirmed that the Chevron doctrine applies to Treasury regulations.

There is also significant congressional support for indexing the calculation of capital gains taxes to inflation. In 2007, then-Congressman Mike Pence introduced legislation to index capital gains taxes to inflation. This legislation was co-sponsored by now-Office of Management and Budget Director Mick Mulvaney, House Speaker Paul Ryan (R-Wis.) and House Ways and Means Chairman Kevin Brady (R-Texas). 

Given the clear economic rationale, strong legal precedent, and significant congressional support for indexation, I urge Treasury to swiftly utilize its regulatory authority and index capital gains taxes to inflation. 

Sincerely,
 

Grover G. Norquist 
President
Americans for Tax Reform

                        Cc:

The Honorable Donald J. Trump
President of the United States
1600 Pennsylvania Avenue, N.W. 
Washington, D.C. 20500

The Honorable Kevin Brady
Chairman, Committee on Ways and Means
U.S. House of Representatives
1102 Longworth House Office Building
Washington, D.C. 20515

The Honorable Orrin G. Hatch
Chairman, Committee on Finance
U.S. Senate
219 Dirksen Senate Office Building
Washington, D.C. 20510

Photo Credit: By Vice President Pence

More from Americans for Tax Reform


23 Conservative Groups Support Delaying Obamacare Taxes

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Posted by Alex Hendrie on Wednesday, January 17th, 2018, 1:00 PM PERMALINK

In an open letter to Speaker Paul Ryan and Senate Majority Leader Mitch McConnell, 23 conservative groups wrote in support of efforts to delay the implementation of Obamacare taxes. If lawmakers do not delay these Obamacare taxes, premiums will skyrocket and middle class families, seniors, and small businesses will be severely impacted. 

Eventually, all Obamacare taxes should be completely repealed, but delaying their implementation through a continuing resolution is a good start.

The full text of the letter can be found here and is below:

Dear Speaker Ryan & Leader McConnell:

We write in support of efforts to offer tax relief to American families through delay of Obamacare taxes.

Recent media reports suggest that Congress is considering passing one or two year relief of the health insurance tax, five years of relief from the medical device tax, and one additional year of relief from the Cadillac Tax, as part of a continuing resolution to fund the federal government. 

If lawmakers fail to act, these taxes will lead to higher premiums and higher costs for middle class families, seniors, and small businesses.

Over the long-term, lawmakers must continue working to repeal all one trillion in Obamacare taxes as part of reforms that increase access to care, lower costs, and get the government out of health care.

In the meantime, lawmakers should ensure temporary relief from as many Obamacare taxes as possible.

Sincerely,

Grover Norquist
President, Americans for Tax Reform

James L Martin
Founder/Chairman, 60 Plus Association

Phil Kerpen
President, American Commitment

Lisa B. Nelson
CEO, ALEC Action

Dan Weber
President, Association of Mature American Citizens

Norm Singleton
President, Campaign for Liberty 

Andrew F. Quinlan
President, Center for Freedom and Prosperity

Olivia Grady
Senior Fellow, Center for Worker Freedom

Jeffrey Mazzella
President, Center for Individual Freedom

Tom Schatz
President, Council for Citizens Against Government Waste

Katie McAuliffe
Executive Director, Digital Liberty

Palmer Schoening
President, Family Business Coalition

Jason Pye
Vice President of Legislative Affairs, FreedomWorks

George Landrith
President, Frontiers of Freedom

Carrie L. Lukas
Independent Women's Forum 

Heather R. Higgins
Independent Women's Voice

Brandon Arnold
Executive Vice President, National Taxpayers Union

Lorenzo Montanari
Executive Director, Property Rights Alliance

Karen Kerrigan
President & CEO, Small Business & Entrepreneurship Council

David Williams
President, Taxpayers Protection Alliance

Jenny Beth Martin
Chairman, Tea Party Patriots Citizens Fund

Nancy Piotter
Executive Director, Virginians for Quality Healthcare

Amy Kremer
Co-chair, Women for Trump

Photo Credit: Stephen Melkisethian


Norquist Hails House Passage of Tax Cuts and Jobs Act

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Posted by Alex Hendrie on Tuesday, December 19th, 2017, 4:17 PM PERMALINK

ATR President Grover Norquist released the below statement following House Passage of the Conference Report to the Tax Cuts and Jobs Act:

“The Tax Cuts and Jobs Act is a hugely pro-growth, pro-family bill that cuts taxes for American families and businesses. This bill doubles the standard deduction, reduces income tax rates for all Americans, makes 529 accounts available to every American to save for education at all levels, and removes tax barriers to job creation here in the United States.

“The House should be congratulated for passing this historic legislation. The Senate should swiftly take up and approve this legislation.

“This landmark achievement would not have been possible without the work of House Speaker Paul Ryan, Ways and Means Chairman Kevin Brady and members of the Committee.”


KEY VOTE: ATR Urges “YES” Vote on Conference Report to H.R.1, the Tax Cuts and Jobs Act

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Posted by Alex Hendrie on Monday, December 18th, 2017, 9:07 AM PERMALINK

The Tax Cuts and Jobs Act will create millions of American jobs and higher wages AND simplify and lower taxes on Americans at every income level

ATR Urges a YES vote.

Later this week, members of the House and Senate will vote on the conference report to H.R. 1, the Tax Cuts and Jobs Act. ATR urges a YES vote on this pro-growth, pro-family legislation.

This legislation offers tax reduction and simplification for families, individuals, small businesses, and corporations. Over the next decade, the Tax Cuts and Jobs Act reduces taxes by $5.5 trillion and eliminates $4 trillion worth of distortionary credits and deductions.

H.R. 1 simplifies the tax code so most Americans can file on a postcard and offers tax relief for Americans at every income level. Under this plan, a family of four with the nationwide median income of $73,000 will receive a tax cut of $2,059.

The Tax Cuts and Jobs Act will also grow the economy leading to increased take-home pay and the creation of new or better jobs for families across the country.

In addition, the Tax Cuts and Jobs Act ends the Obamacare mandate tax paid by millions of Americans -- 80% of whom earn less than $50,000 – and allows responsible production of oil in Alaska.

By voting YES on the Tax Cuts and Jobs Act, members of the House and Senate have a rare opportunity to reform the broken tax code and offer relief to families and businesses across the country. All Senators and Congressmen should vote for H.R. 1.

Key highlights of H.R. 1:

-Reduces almost every individual income tax bracket.

                -Current law: 10%, 15%, 25%, 28%, 33%, 35%, 39.6%

                -Tax Cuts and Jobs Act: 10%, 12%, 22%, 24%, 32%, 35%, 37%

-Doubles the standard deduction to $12,000 for an individual and $24,000 for a family.

-Doubles the death tax exemption to $11 million ($22 million for couple).

-Increases the child tax credit to $2,000 per child.

-Eliminates the Obamacare individual mandate tax penalty.

-Increases the threshold for the Alternative Minimum Tax.

-Limits the state and local tax deduction to $10,000 and the mortgage interest deduction to $750,000.

-Expands 529 education savings accounts for elementary, secondary and higher education.

-Reduces taxes on pass-through businesses (Sole proprietorships, partnerships, LLCs, S corporations) through a 20 percent deduction on business income subject to certain limitations.

-Reduces the corporate income tax to 21 percent effective immediately.

-Implements 100 percent full business expensing for five years and expands Sec. 179 small business expensing.

-Eliminates the Corporate AMT.

-Limits deductibility of net interest expense to 30 percent of EBITDA (earnings before interest, tax, depreciation, and amortization) until 2022 when it is calculated as 30 percent of EBIT (earnings before interest and tax).

-Implements a territorial system of taxation with a 100 percent dividend exemption system. Imposes a deemed repatriation rate of 15.5 percent for cash/cash equivalents and 8 percent for non-cash/illiquid assets.


20 Conservative Groups Support the Senate’s Tax Cuts and Jobs Act

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Posted by Alex Hendrie on Monday, November 13th, 2017, 7:00 PM PERMALINK

A coalition of 20 conservative groups led by Americans for Tax Reform today wrote to Chairman Orrin Hatch and the members of the Senate Finance Committee supporting the Chairman’s mark of the Tax Cuts and Jobs Act.

[The letter can be found here]

As the letter says, the Tax Cuts and Jobs Act simplifies the code, reduces taxes for families and businesses, and grows the economy. While there is still more work to be done, the Act is an excellent start, and the signers are ready to work with the Committee to pass comprehensive tax reform before the end of the year.

The full letter can be found here and is below:

Dear Chairman Hatch and Members of the Senate Finance Committee:

We write in support of the Chairman’s mark of the Tax Cuts and Jobs Act. The release of this legislation marks an important step in passing comprehensive tax reform before the end of the year. We urge your committee to swiftly approve this bill and send it to the full Senate for consideration.

Just like the House bill, your proposal is pro-growth and pro-family. This legislation simplifies the code, reduces taxes for families and businesses, and grows the economy, leading to higher wages and new or better jobs.

Importantly, more work needs to be done, such as ensuring full repeal of the death tax. As you move through the committee process this week, it is imperative that this unfair tax is repealed.

Congress has a rare opportunity this year to reform the broken federal tax code. We stand ready to work with you as the Senate Finance Committee continues moving through regular order starting with mark-up of the legislation this week.

Sincerely,

Grover Norquist
President, Americans for Tax Reform

Pete Sepp
President, National Taxpayers Union

Christine Harbin
Vice President of External Affairs, Americans for Prosperity

James L. Martin
Founder & Chairman, 60 Plus Association

Lisa B. Nelson
Chief Executive Office, ALEC Action

Phil Kerpen
President, American Commitment

Andrew Quinlan
President, Center for Freedom and Prosperity

Olivia Grady
Senior Fellow, Center for Worker Freedom

Dan Caldwell
Executive Director, Concerned Veterans for America

Matthew Kandrach
President, Consumer Action for A Strong Economy (CASE)

Thomas Schatz
President, Council for Citizens Against Government Waste

Katie McAuliffe
Executive Director, Digital Liberty

Nathan Nascimento
Vice President of Policy, Freedom Partners Chamber of Commerce

Jason Pye
Vice President of Legislative Affairs, FreedomWorks

Carrie Sheffield

Executive Director, Generation Opportunity

Mario H. Lopez
President, Hispanic Leadership Fund

Heather R. Higgins
President & CEO, Independent Women’s Voice

Daniel Garza
President, The LIBRE Initiative

Lorenzo Montanari
Executive Director, Property Rights Alliance

David Williams
President, Taxpayers Protection Alliance


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