Alexander Hendrie

Tax Reform Must Preserve the Deduction for Advertising Costs

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Posted by Natalie De Vincenzi, Alexander Hendrie on Friday, February 17th, 2017, 10:00 AM PERMALINK

2017 marks a once-in-a-generation opportunity to pass comprehensive, pro-growth tax reform. As lawmakers move forward with tax reform, they must retain the ability of businesses to deduct advertising costs. Eliminating or removing this deduction would distort business decisions and undermines the goals of growth, simplicity, and equity that drive tax reform. 

[ATR letter in support of preserving advertising deduction]

Treating Advertising Costs Differently From Other Business Decisions Would Distort the Tax Code: Advertising is one of many costs of doing business that firms are properly allowed to deduct, and has been treated as such in the tax code for more than 100 years. Other costs to businesses include wages and other forms of compensation, travel, and rent.

There is little difference between advertising costs and these other business expenses. Changing current law would needlessly create a bias against investing in advertising. In turn, this would encourage businesses to make economically inefficient decisions based on tax reasons.

Eliminating the Advertising Deduction Would Have Drastic Economic Consequences: Past tax reform proposals have called for limiting or eliminating the advertising deduction as a “pay-for” in tax reform. However, any revenue raised in this way would be dwarfed by the negative impacts to the economy. 

In total, advertising directly or indirectly supports almost 22 million jobs and $36.7 trillion in total economic output. Every dollar of advertising spending generates $22 of economic activity. Advertising associated with local radio and television is alone projected to contribute more than $1 trillion in economic output and 1.38 million jobs.

Preserving the Deductibility of Advertising is Consistent With the Principles of the “Better Way” Tax Reform Blueprint: One of the most pro-growth changes in the House Republican blueprint is the creation of a “cash-flow” business tax that allows businesses to immediately deduct the costs associated with necessary expenses like the purchase of tangible and intangible assets.

This gives business owners a zero percent rate on dollars spent when they invest in their business, which in turn drives stronger growth, and helps create more jobs and higher wages. In fact, implementation of immediate full business expensing would lead to an estimated long-term GDP growth of 5.4 percent and create more than one million jobs, according to the Tax Foundation.

Implementing full business expensing is a vital step toward creating a pro-growth tax code. At the same time, taking the existing treatment of advertising costs in the other direction by forcing it to be depreciated over multiple years makes no economic sense and undermines both the economic gains and the rationale for moving to full business expensing.

As part of the tax reform conversation, legislators should oppose any proposal that removes the ability of businesses to deduct advertising costs as a necessary business expense. Limiting this provision would undermine economic growth, the principles of the “Better Way” blueprint, and completely distorts business decisions.

 

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Correcting Misconceptions About the Border Adjustable Cash-Flow Business Tax

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Posted by Alexander Hendrie on Tuesday, February 7th, 2017, 9:00 AM PERMALINK

The House Republican “Better Way” tax reform blueprint proposes a desperately needed overhaul of the tax code. It has been more than 30 years since tax reform was last signed into law, and it is past time this outdated code was updated.

On both the individual side and business side, the plan reduces taxes across the board. In addition, the plan calls for much needed simplification, and implements numerous pro-growth policies. Specifically, the blueprint transforms the current corporate income tax to a cash-flow business tax through the implementation of full business expensing, the creation a territorial system of international taxation, and adding a border adjustability component.

While the plan is extremely pro-growth, border adjustability has been subject to mischaracterization and confusion. While it may sound to some like a tariff or a Value-Added Tax, it contains important differences with both. Instead, it should be viewed as an integral part of a modern, internationally competitive cash-flow business tax that replaces the cumbersome corporate income tax used today. 

Is Border Adjustability A New Tax?
Although some have described the border adjustability component of the cash-flow business tax as a new, one trillion dollar tax on imports, this is a complete mischaracterization. While the border adjustability component raises revenue, it should not be viewed in isolation, but as a base broadener that facilitates lower rates for all businesses.

Border adjustability should also be considered in the context of the many, pro-growth changes in the Better Way plan, and as part of a system that equalizes the taxation of American businesses relative to foreign competitors. It is a dramatic tax cut for businesses and consumers relative to our existing system of taxation, as the plan creates a new, low rate for corporations of 20 percent and a 25 percent rate for pass-through entities.

The House plan reduces taxes on small businesses and corporations by about $4 trillion through reductions in marginal rates and by allowing immediate expensing of new business investments, which greatly exceeds the $1 trillion raised by border adjustability. In total, the plan reduces taxes by $2.4 trillion on a static basis, according to estimates by the Tax Foundation. Through the many pro-growth policies, the plan also leads to increased household income of almost 9 percent after economic feedback.

How Does Border Adjustability Work and Why is it Needed?
Under the border adjustability system, the costs associated with products exported from the US are fully deductible from the cash-flow tax, and the costs associated with products imported into the US are not deductible from the cash-flow tax.

This change is made to ensure American businesses are on a level playing field with foreign competitors, not so they have a protectionist advantage. America is the only nation without border adjustment among the 35-member Organisation for Economic Co-operation and Development (OECD) and the five country BRICS (Brazil, Russia, India, China and South Africa). The only other countries with a border adjustment include nations like North Korea, South Sudan, Iraq, Myanmar, and Western Sahara. 

[See the Full Map of Countries with and Without Border Adjustment Here]

Normally, when a product leaves a country the border adjustment mechanism adjusts rates downward, which is then offset when it enters the new country which border adjusts rates upwards. Neither country is imposing a tariff, rather they are taxing based on where the product is consumed.

Because the US does not have a border adjustment mechanism, American businesses that sell products overseas face an export penalty relative to transactions between two other countries with border adjustable systems. Similarly, foreign businesses selling in the U.S. receive an import tax break compared to transactions between two other developed nations.

Is the Border Adjustment Component A Tariff?
A border adjustment mechanism is not a tariff – it is administered through the tax code so it cannot be considered trade policy.

The differences between the two are far from technical. Implementing a border adjustment system is about treating exports and imports equally in the global economy. Implementing a tariff is about reducing imports from another country in a discriminatory way.

Border adjustability is trade neutral because the export portion and the import portion of the border adjustment are off-setting and equal in nature. Any revenue raised is dependent on the size of the country’s trade deficit or surplus. 

In the U.S. context, the border adjustment component of the cash-flow business tax raises a projected $1 trillion over a decade, but this is solely because of the U.S. trade deficit which totals roughly $500 billion every year. Every dollar worth of goods leaving the country cancels out one dollar worth of goods arriving in the country. A trade surplus would result in the component raising no revenue. 

Border adjustability is also likely compliant with the World Trade Organization –the global body governing international trade—because it is structured around an indirect, consumption based tax. The cash-flow business tax contains many components of an indirect tax such as the elimination of interest deductibility and allowing full business expensing to ensure it is compliant with global norms.

How Does the Cash-Flow Business Tax Differ From A Value-Added Tax?
The cash-flow, border adjustment tax in the House blueprint is not a VAT.

The most important difference between the two is that the House tax plan allows for a business to deduct any labor compensation, which is then taxed through the individual income tax. This ensures that taxation is transparent to voters and taxpayers. In contrast, VATs have a much broader base that includes all compensation paid to workers, which shields the true impact of the tax from those who pay it.

This difference addresses a key problem with the VAT – that it is hidden from taxpayers. The VAT is applied at every stage of consumption, from wholesale to retail. It is passed along until it literally becomes as much an inherent and cloaked component in the price as transportation or raw materials. It is embedded in the final cost of the goods sold, and is hidden to the consumer. As a result, countries that have adopted a VAT can easily raise the rate over time to expand the size of government. The same cannot be said for the cash-flow border adjusted business tax.

 

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Conservative Coalition to Congress: Pass Pro-Growth Tax Reform in 2017

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Posted by Alexander Hendrie on Monday, February 6th, 2017, 6:00 AM PERMALINK

Americans for Tax Reform President Grover Norquist, together with a coalition of 31 other conservative, free market leaders and organizations today urged Congress to pass pro-growth tax reform in 2017.

In the letter, addressed to House Speaker Paul Ryan (R-Wis.) and Ways and Means Chairman Kevin Brady (R-Texas), the coalition urges significant progress to be made in the first hundred days of the Trump administration:

“Given the importance of this issue, we believe it is imperative that the House of Representatives make significant progress in the first hundred days of the Trump administration toward passing comprehensive, pro-growth tax reform.

“Passage of tax reform that simplifies and updates the code is key toward encouraging economic growth, creating more jobs and higher wages, and promoting innovation and ingenuity. The release of your ‘Better Way’ tax reform blueprint last year was the first step in achieving this important goal, and we encourage you to continue working to ensure tax reform becomes a reality.”

Pro-growth tax reform should lower rates for families and businesses across the board, simplify the byzantine code, ensures small businesses and corporations can compete, and make lasting, permanent changes to law.

The full letter is below and can be found here.

February 6, 2017

The Honorable Paul D. Ryan          
Speaker of the House                     
U.S. House of Representatives      
H-232, The Capitol                          
Washington, D.C. 20515                

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

Dear Speaker Ryan & Chairman Brady:

On behalf of the undersigned organizations, we write in support of your efforts to pass pro-growth tax reform into law in 2017.

Given the importance of this issue, we believe it is imperative that the House of Representatives make significant progress in the first hundred days of the Trump administration toward passing comprehensive, pro-growth tax reform.

Passage of tax reform that simplifies and updates the code is key toward encouraging economic growth, creating more jobs and higher wages, and promoting innovation and ingenuity. The release of your “Better Way” tax reform blueprint last year was the first step in achieving this important goal, and we encourage you to continue working to ensure tax reform becomes a reality.

As you know, it has been more than 30 years since comprehensive tax reform was last signed into law. Since then, our foreign competitors have drastically reduced their rates, simplified their codes, and updated their systems to be globally competitive. Meanwhile, our tax code has almost tripled in size and has failed to keep pace with the norms of global tax competition. 

Tax reform should be viewed as an opportunity to reduce rates for all taxpayers while also repealing many of the discriminatory and preferential provisions in the code in favor of a broader base. Lawmakers also ought to repeal a number of unnecessary taxes like the Death Tax and the Alternative Minimum Tax, which only add to the complexity of the system.

On the business side, tax reform should ensure our small businesses and corporations can compete against foreign competitors, while also ending the confusing, arbitrary system of depreciation in favor of immediate, full expensing of business investments.

Where possible, changes to the tax code should be permanent changes to law. When lawmakers have enacted short-term tax legislation in the past, it has inevitably come under threat in the future by legislators that want to increase the scope and size of government through higher taxes. In contrast, permanent legislation will give families and businesses much-needed certainty and will help contribute to a stronger economy.

Today, pro-growth tax reform is needed more than ever. It is imperative that lawmakers prioritize an overhaul of the tax code in 2017 and make significant progress in the first hundred days of the Trump administration. 

Sincerely,

Grover Norquist
President, Americans for Tax Reform

Pete Sepp
President, National Taxpayers Union

James L. Martin
Founder & Chairman, 60 Plus Association

Dan Weber
President, Association of Mature American Citizens

Lindsay Boyd
Policy Director, Beacon Center of Tennessee

Jim Waters
President, Bluegrass Institute for Public Policy Solutions (Kentucky)

Jeff Mazzella
President, Center for Individual Freedom

Tom Schatz
President, Council for Citizens Against Government Waste

Chip Faulkner
Citizens For Limited Taxation (Massachusetts)

Chuck Muth
President, Citizen Outreach (Nevada)

Katie McAuliffe
Executive Director, Digital Liberty

Palmer Schoening
Chairman, Family Business Coalition

Adam Brandon
President and CEO, FreedomWorks

Mario H. Lopez
President, Hispanic Leadership Fund

Carrie L. Lukas
Managing Director, Independent Women's Forum

Heather R. Higgins
President and CEO, Independent Women's Voice

Andrew Langer
President, Institute for Liberty

Dr. Robert McClure
President and CEO, The James Madison Institute (Florida)

Lisa B. Nelson
President and CEO, Jeffersonian Project

Brett Healy
President, The John K. MacIver Institute for Public Policy (Wisconsin)

Allen Gutierrez
National Executive Director, The Latino Coalition

Seton Motley
President, Less Government

Colin Hanna
President, Let Freedom Ring

Dee Hodges
President, Maryland Taxpayers Association ​

Brian McClung
Chair, Minnesota Center-Right Coalition

Jordan Harris
Executive Director, Pegasus Institute (Kentucky)

William Booher
Interim Executive Director, Pelican Institute for Public Policy​

 

Charlie Gerow
CEO, Quantum Communications (Pennsylvania)

Paul J. Gessing
President, Rio Grande Foundation (New Mexico)

Andrew Moylan
Executive Director, R Street Institute

Karen Kerrigan
President & CEO, Small Business & Entrepreneurship Council

David Williams
President, Taxpayers Protection Alliance

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Every Modern Country in the World Has Border Adjustability Except America

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Posted by Alexander Hendrie on Thursday, February 2nd, 2017, 4:00 PM PERMALINK

America’s archaic, overly complex tax code makes it difficult – if not impossible – for U.S. businesses to compete with foreign competitors. We need revenue neutral, pro-growth tax reform to address this problem and reverse the trends of insufficient growth, too few jobs, and stagnant wages.

One reason for the American competitiveness problem is that the US is the only modern country without a border adjustment mechanism. Countries “border adjust” by applying equal, offsetting taxes on imports and tax breaks on exports. This allows countries to tax based on where the product is consumed, but the lack of a US border adjustment system results in a significant competitive disadvantage for American businesses.

Normally, when a product leaves one country, the border adjustment mechanism adjusts rates downward which is then offset when it enters the new country which border adjusts rates upwards. Neither country is imposing a tariff here. Rather they are taxing based on where the product is consumed.

Because the US does not have a border adjustment, American businesses that export overseas face a penalty relative to transactions between two countries with border adjustable systems – there is no border adjustment downward when the product is exported to offset the upward border adjustment when the product is imported.  Similarly, foreign businesses importing into the U.S. receive a tax break compared to transactions between two other developed nations, because they do not have a border adjustment up when sending products into the U.S.

This problem is not limited to a few of America's trading partners. The U.S. is the only nation without border adjustment among the 35-member Organisation for Economic Co-operation and Development (OECD) and the five country BRICS (Brazil, Russia, India, China and South Africa). The U.S. system is so antiquated that the only countries with a border adjustment are nations like North Korea, South Sudan, Iraq, Myanmar, and Western Sahara. 

[See the Full Map of Countries with and Without Border Adjustment Here]

While the border adjustment in the House GOP “Better Way” blueprint may sound like a tariff or a Value-Added tax, in reality it is neither. It is part of a modern, internationally competitive cash-flow business tax that replaces the cumbersome corporate income tax used today.

If lawmakers want American businesses to be able to compete, they must fix this outdated, uncompetitive system. They can do this by passing tax reform along the lines of the House blueprint.

OECD/BRICS Countries with Border Adjustment

OECD/BRICS Countries without Border Adjustment

  • Australia
  • Austria
  • Belgium
  • Brazil
  • Canada
  • Chile
  • China
  • Czech Republic
  • Denmark
  • Estonia
  • Finland
  • France
  • Germany
  • Greece
  • Hungary
  • Iceland
  • India 
  • Ireland
  • Israel
  • Italy
  • Japan
  • South Korea
  • Latvia
  • Luxembourg
  • Mexico
  • Netherlands
  • New Zealand
  • Norway
  • Poland
  • Portugal
  • Russia
  • South Africa
  • Slovakia
  • Slovenia
  • Spain
  • Sweden
  • Switzerland
  • Turkey
  • United Kingdom

 

 

  • United States

 



 

 

 

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Repeal of Obamacare Will Provide Much Needed Middle Class Tax Relief

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Posted by Alexander Hendrie on Tuesday, January 24th, 2017, 3:06 PM PERMALINK

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

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

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

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

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

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

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

 

Households w/ 1 Adult

 

Households w/ 2 Adults

Households w/ 2 Adults & 2 children

 

2.5% AGI/$695

 

2.5% AGI/$1390

2.5% AGI/$2085

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

Medicine Cabinet Tax on HSAs and FSAs ($6.7 billion tax hike between 2016-2025)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Ten Percent Excise Tax on Indoor Tanning ($800 million tax hike between 2016-2025) 

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

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Tax Reform Must Retain Carried Interest As A Capital Gain

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Posted by Alexander Hendrie on Tuesday, January 24th, 2017, 8:00 AM PERMALINK

As President Trump and Congress ramp up discussions on what comprehensive tax reform should look like, they ought to be able to agree that reducing, not raising, the tax burden on badly-needed investment is a top priority. That's the opinion of two of Washington's most prominent taxpayer groups, which today urged leaders on both ends of Pennsylvania Avenue to get an early start on publicly declaring tax-reform principles that encourage investment, among them ensuring that all types of capital gains are treated fairly, without harsh or discriminatory exceptions in the law. 

Grover Norquist, Founder and President at Americans for Tax Reform, and Pete Sepp, President of National Taxpayers Union, offered the following statement ahead of GOP's policy retreat, where tax reform is expected to be the topic of in-depth discussions:

"The next four years represents an opportunity to reduce -- not increase taxes on capital gains. Over the past eight years, the top rate increased from 15 percent to 23.8 percent, and the top integrated rate currently sits at 56.3 percent compared to the OECD/BRIC average of 40.3 percent. 

While it appears unlikely that incoming lawmakers and the administration will increase rates outright, they should also be sure not to incrementally move the needle toward higher capital gains taxes in other ways, like boosting taxes on carried interest capital gains.

Carried interest capital gains income is earned through a net gain within a partnership formed between individuals with capital and an expert investor. They are indistinguishable from any other type of capital and so they are paid at the same capital gains tax rates. 

While supporters of higher taxes on carried interest capital gains say it takes aim at 'hedge fund guys,' it would also hurt pension funds, charities, and colleges that depend on these investment partnerships as part of their savings goals. In addition, small businesses would find themselves increasingly shut out from investment money available to them from these partnerships.

Rather than supporting proposals that lead to higher capital gains tax rates, the incoming Congress and administration should look toward lower rates. One model to follow is contained in the House GOP blueprint, which reduces the top rate on capital gains to 16.5 percent."

ATR is a nonpartisan taxpayer advocacy group, and sponsors the Taxpayer Protection Pledge. NTU is a pro-taxpayer lobbying organization working for lower, simpler taxes and economic freedom at all levels.

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ATR Statement in Support of Rep. Mulvaney for OMB Director

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Posted by Alexander Hendrie on Monday, January 23rd, 2017, 3:05 PM PERMALINK

ATR President Grover Norquist today sent a letter of support for Congressman Mick Mulvaney (R-S.C.) for the position of Director of the Office of Management and Budget. Read the letter here or below. 

Dear Chairman Enzi & Ranking Member Sanders,

I write in support of Congressman Mick Mulvaney for the position of Director of the Office of Management and Budget. Throughout his time in Congress, Rep. Mulvaney has displayed a commitment to addressing Washington’s rampant overspending problem and reforming the bloated federal bureaucracy. Senators should have no hesitation supporting his nomination to lead OMB and should swiftly approve him to this position.

The federal budget is on an unsustainable trajectory that must be addressed. In coming decades, spending and debt are projected to rapidly increase to historically high levels. The Director of OMB will play an integral part in reining in the out-of-control federal government and Rep. Mulvaney has proven he is willing to make the tough choices that will undoubtedly be required to reverse the looming fiscal crisis.

As an advocate of bringing the Department of Defense under full audit, Rep. Mulvaney has shown a willingness to look for waste and abuse wherever it may be.

As a signer of the Taxpayer Protection Pledge – a commitment made to his constituents to oppose any and all new tax increases – Rep. Mulvaney has shown he understands the need to reduce spending and the deficit without burdening American families and businesses with higher taxes.

Congressman Mick Mulvaney is the right choice to lead OMB at a time when the federal budget is in desperate need of restraint. I urge you and your colleagues to swiftly approve his nomination as Director of OMB.

Onward,

Grover Norquist

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ATR Supports Congressman Tom Price for HHS Secretary

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Posted by Alexander Hendrie on Monday, January 23rd, 2017, 1:52 PM PERMALINK

ATR President Grover Norquist today sent a letter of support for Congressman Tom Price (R-Ga.) for the position of Secretary of the Department of Health and Human Services. Read the full letter here or below. 

Dear Chairman Hatch & Ranking Member Wyden:

I write in support of Congressman Tom Price for the position of Secretary of the Department of Health and Human Services. Throughout his career in public office, Dr. Price has proven to be an advocate for pro-growth, fiscally responsible reforms, a champion of patient-centered, free market healthcare, and a supporter of ending Washington dysfunction and gridlock. All Senators should vote to confirm Rep. Price as to lead HHS.

As Chairman of the House Budget Committee, Dr. Price has released fiscally responsible proposals that address Washington’s overspending problem and reduce the deficit without burdening American families and businesses with higher taxes.

Dr. Price has also made it a priority to fix Washington’s gridlock and political dysfunction. Dr. Price last year released a detailed proposal to reform the broken federal budget process by replacing the 1974 Budget Act with reforms to reassert Congressional authority over the federal budget, establish enforceable benchmarks to rein in the deficit, and reverse the bias toward unaccountable spending.

As a member of the House Ways and Means Committee, Dr. Price has advocated for conservative, pro-growth tax reform. Dr. Price is a signer of the Taxpayer Protection Pledge, a commitment he has made to his constituents to oppose any and all new tax increases.

Over the last eight years, Dr. Price has conducted important oversight over the Obama administration. Most notably, Dr. Price last year led oversight efforts over Centers for Medicare and Medicaid Innovation (CMMI), which used its broad authority to unilaterally change to healthcare policy despite opposition from doctors, patients, and lawmakers on both sides of the aisle.

In addition to oversight over Obamacare, Dr. Price has also shown leadership in proposing free market solutions. Rep. Price is the author of the “Empowering Patients First Act,” legislation that replaces Obamacare with a series of reforms that lowers costs, increases efficiency, and empowers patients and doctors across the country.

Congressman Tom Price has a proven record fighting for lower taxes, responsible spending, free market healthcare, and an accountable federal government. Senators should have no hesitation supporting his nomination to lead HHS and should swiftly approve him to this position.

Onward,

Grover Norquist 

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Amendments to Obamacare Repeal Resolution Aim to Delay and Distract

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Posted by Alexander Hendrie on Wednesday, January 11th, 2017, 8:36 AM PERMALINK

Possible Prescription Drug Importation Amendments Are Not the Solution to Reducing Prices

The Senate is expected to soon vote on S.Con.Res.3, a budget resolution providing for repeal of Obamacare. This “repeal resolution” is step one in undoing the legacy of broken promises under the Barack Obama presidency which have led to higher healthcare costs, cancelled plans, lost doctors, and more than one trillion ($1,000,000,000,000) in tax increases which hit American families and small businesses.

This is a huge win for taxpayers, and should be supported by all Senators. During consideration of the repeal resolution, it is expected that Senators will also offer a number of amendments during consideration of the repeal resolution with the aim of distracting and delaying the process. One example of this is a series of introduced amendments that call for the importation of market distorting price controls on prescription medicines.

Members of the Senate should vote “no” on any importation amendments – and many of the other amendments expected to be offered during consideration of the repeal resolution. The purpose of this budget resolution is to allow for an expedited process to repeal Obamacare through budget reconciliation. More time wasted on amendments threatens the entire process of repealing Obamacare.

Importation schemes are not the solution to lower prices or a more efficient healthcare system. Instead, they would disrupt the system of medical innovation and increase long-term costs through the domino effect of fewer life-saving and life-preserving medicines. These amendments are simply an attempt by some Senators to play political games by proposing a seemingly free market way to reduce prescription drug prices.

The truth is, allowing importation of prescription medicines is not pro-free trade. Almost every other country in the world has excessive price controls on medical innovation. Prices are not determined by the free market but by politicians offering voters seemingly cheap medicines. In turn, allowing importation of a drug also means for the importation of the price controls.

This is the opposite of free trade. Free trade means transparent prices with no tariffs, barriers, or price controls. The U.S. is one of the few countries that allow drug prices to be (mostly) set by the free market, and is also a leader in medical innovation. Reversing this trend by allowing ill-thought out importation policies will hurt American innovators which pour billions of dollars each year into creating new innovative medicines that result in substantial long-term savings for our healthcare system.

The Senate will soon vote on a repeal resolution that will lead to a giant tax cut for American families and small businesses. This is a huge win.

Members should not dilute or threaten this win by passing amendments that slow or endanger the process, especially those that promote dangerous, anti-free market policies like importation of price controls on prescription medicines.

 

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ATR Urges Passage of S.Con.Res.3, The Obamacare Repeal Resolution


Posted by Alexander Hendrie on Monday, January 9th, 2017, 7:00 AM PERMALINK

Passage of Repeal Resolution is First Stage in Passing A Trillion Dollar Tax Cut

Congress is expected to soon vote on S.Con. Res. 3, a budget resolution providing for repeal of Obamacare. The “repeal resolution” is step one in undoing the legacy of broken promises under the Barack Obama presidency which have led to higher healthcare costs, cancelled plans, lost doctors, and more than $1 trillion in tax increases which hit millions of middle class families.

All members of the House and Senate should vote “yes” on the repeal resolution. The record of Obamacare is one of broken promises and failed policies. Poll after poll has shown the law is unpopular with the American people. Republicans campaigned on repealing Obamacare and this resolution will allow them to fulfill that promise.

Members of the Senate should also vote “no” on the numerous amendments expected to be offered during consideration of the repeal resolution. The purpose of this budget resolution is to allow for an expedited process to repeal Obamacare through budget reconciliation. These amendments will slow down the process and are largely an attempt for members to play political games.  

Passing the repeal resolution will allow members of Congress to pass the first of many tax cuts over the next four years by repealing the more than $1 trillion in higher taxes over a decade. Obamacare’s tax hikes directly hit middle class families, in violation of President Obama’s “firm pledge” not to raise any tax on any family earning less than $250,000 per year. Passing the repeal resolution will allow members of Congress the opportunity to pass the first of many tax cuts over the next four years by repealing these taxes.

The Obamacare law imposed taxes on Health Savings Accounts and Flexible Spending Accounts and imposed an income tax increase on Americans with high medical bills. Obamacare levied a new tax on health insurance, a tax on medical devices, a tax on employer provided care, a steep “indoor tanning tax” and even a tax for not buying “qualifying” government-mandated insurance.

[Full List of Obamacare’s One Trillion Dollars in Tax Hikes]

Passing the repeal resolution will also allow Congress to undo a long list of wasteful subsidies including the risk corridor and reinsurance programs as well as the Prevention and Public Health slush fund. Each of these programs and agencies have seen billions in taxpayer dollars wasted on partisan activities at a time when the federal government already spends far too much.

Support for S.Con. Res. 3 is the first step toward enacting a conservative, patient-centered, fiscally responsible healthcare system and eliminating the broken promises, wasteful spending, and higher taxes of the Obama years. 

 

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