Tom Hebert

ATR Supports H.R. 2505, the “Unauthorized Spending Accountability Act of 2019”

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Posted by Tom Hebert on Friday, May 3rd, 2019, 11:08 AM PERMALINK

Rep. Cathy McMorris Rodgers (R-Wash.) has introduced H.R. 2505, the “Unauthorized Spending Accountability (USA) Act,” a bill that would empower Congress to shrink the size and scope of the federal government. Americans for Tax Reform supports this legislation and urges its passage. 

Congress establishes federal programs via authorization bills. These programs can be authorized to operate for a specific period of time or indefinitely. After the programs are established, Congress then authorizes the appropriation of money to fund the programs. 

Congress routinely appropriates money to programs that are no longer authorized. According to the Congressional Budget Office (CBO), Congress appropriated $340.7 billion to 261 programs or activities with expired authorizations in Fiscal Year 2018. 

H.R. 2505 would defund these zombie programs by putting all unauthorized programs on a pathway to sunset in 3 years. After the first year, an unauthorized program’s budget is reduced by 10 percent. In the second and third year, its budget decreases by 15 percent until sunsetting at the end of the third year. If Congress decides to reauthorize the program during this three-year period, the program ceases to sunset and remains fully funded. 

H.R. 2505 also establishes a Spending Accountability Commission (SAC) with three main objectives: establishing an authorization schedule of all discretionary programs, conducting reviews of all mandatory spending programs, and assisting Congress in finding prudent spending cuts to mandatory programs. The SAC would be responsible for maintaining a three-year schedule for discretionary federal programs, and would offer proposed cuts in mandatory spending in the event Congress cannot agree on reauthorizing a program. 

If implemented, H.R. 2505 would establish a three-year reauthorization cycle for all discretionary programs. At the end of the three-year period, the sunset and sequestration cycle would begin if the program is not reauthorized. If Congress wishes to override the sequester, it must agree to mandatory spending cuts as reported by the SAC. 

With the national debt at over $22 trillion and counting, Congress must work on streamlining and reducing government spending as much as possible. While Democrats control the House of Representatives, relying on Congress to reduce spending in and of itself is a difficult proposition, which is why an automatic sunset and sequestration period for unauthorized programs is necessary. H.R. 2505 is an important piece of taxpayer-friendly legislation that sets Congress back on a path of fiscal accountability. Congress should swiftly pass it, and President Trump should sign it into law. 

 

Photo Credit: Gage Skidmore


Unemployment Rate Hits 50-Year Low

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Posted by Tom Hebert on Friday, May 3rd, 2019, 10:31 AM PERMALINK

The U.S. economy added 263,000 jobs in April and unemployment is at just 3.6 percent, a 50 year low. Wage growth is also strong – average hourly earnings have grown 3.2 percent over the past year.

This latest news, released by the Department of Labor, shows that the Trump tax cuts and Republican regulatory relief are continuing to have positive effects on the U.S. economy.

Unemployment has been at or below 4 percent for the past 14 months, and the economy has added an average of 218,000 jobs per month over the past year.

Key demographics are also seeing record levels of unemployment:

  • Unemployment for adult women is at 3.1 percent, a 66 year low.
  • Unemployment for Hispanics is at 4.2 percent – the lowest rate since this data was first collected in 1973.
  • Unemployment for veterans is at 2.3 percent, a 19 year low.
     

The labor force participation rate remained steady at 62.8 percent, a stark contrast to the 40-year lows the labor force participation rate hit under the Obama Administration.

This April Jobs report is just the latest proof that the Trump economy is strong.

GDP grew by 3.2 percent in the first quarter of 2019 and has averaged 3 percent quarter-to-quarter growth since the Tax Cuts and Jobs Act was passed into law.

Businesses have responded to the tax cuts by giving employees higher wages and creating new employee benefit programs, while utility companies are passing tax savings onto consumers in the form of lower rates.

Families are also seeing direct tax reduction – 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. In net, households are paying an average of 24.9 percent in lower taxes according to a report released by H&R Block based on their clients’ tax returns. 

While the Democrats continue to downplay or mislead the American public on the positive economic news, the April jobs report again shows that the economy is strong and that the Republican Tax Cuts and Jobs Act is benefiting the working class with higher wages and more job opportunities.

Photo Credit: Gage Skidmore


RSC Budget Reforms Entitlements, Fixes Healthcare System

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Posted by Tom Hebert on Thursday, May 2nd, 2019, 3:27 PM PERMALINK

The Republican Study Committee Budget,  “Preserving American Freedom,” contains numerous reforms that would reform our federal welfare system, stop Medicare and Social Security from becoming insolvent, and fix our broken healthcare system.

The budget, proposed by RSC Chairman Mike Johnson (R-La.) and RSC Budget and Spending Task Force Chairman Jim Banks (R-IN), provides a stark contrast to the House Democrats that didn’t even release a budget this year.

Fixing Welfare and Enabling Upward Mobility

By any objective measure, the federal government’s decades-long war on poverty has failed. President Lyndon Johnson’s Great Society programs have done very little to help people escape the vicious cycle of poverty. Since 1965 when these programs were created, the government has spent $27.8 trillion. Throwing money at the problem has clearly not worked, yet in many instances, the programs actively thwart the upward mobility necessary for individuals and families to break out of poverty.

The RSC budget contains numerous substantive changes to the welfare system in order to promote upward mobility. For example:

  • The RSC budget would strengthen federal welfare programs with work requirements that would help Americans move away from dependence and toward self-sufficiency.
  • The RSC budget includes important reforms that would modernize the Supplemental Nutrition Assistance Program (SNAP) for future recipients. The cost of SNAP is growing and its efficacy is dwindling. The RSC budget would distribute funds to states based on a formula that accounts for factors such as poverty and unemployment. States would then have the flexibility to administer their own programs at optimal efficiency and subject to several federal requirements. The budget would also implement asset tests for SNAP recipients to ensure the program is benefiting the truly needy.
  • The RSC budget contains a number of different reforms to the Temporary Assistance for Needy Families (TANF) program. The budget strengthens work requirements, requires states to actually use TANF funds for TANF instead of plugging holes in the state budget, and adopts Rep. Kevin Brady’s important Jobs for Success Act, which ATR has praised here.
     

Saving Social Security

Social Security is on a fast track to bankruptcy. According to a recent report by the Social Security Trustees, the Social Security Old-Age and Survivors Insurance (OASI) Trust Fund will be out of money by 2035. Upon depletion, recipients will face an automatic benefit cut of 25 percent that will only increase over time.

The RSC budget contains numerous reforms that would keep Social Security solvent for future generations. For example:

  • The budget gradually phases in an adjustment of the retirement age to reflect increased life expectancy. In order to protect the solvency of the program, the budget would increase the retirement age at three months per year until it hits 69 for those turning 62 in 2030. The budget will also link the normal and early retirement ages to life expectancy so the program does not fall off track in the future.
  • The budget would focus the Social Security cost of living adjustment (COLA) on beneficiaries who need it most.
  • The budget modernizes the formula Social Security uses to calculate retirement benefits so that low-income workers receive higher retirement benefits than they do in the current law.
  • The budget removes perverse incentives that discourage active seniors from remaining in the workforce as they collect benefits.
     

Reforming Medicare

Medicare is unsustainable in its current form as the population ages. More than 10,000 Americans reach retirement age every day which will add to the 60 million Americans currently covered. 

Modernizing Medicare for the benefit of future generations is key and the RSC budget contains numerous reforms. For example:

  • The RSC budget would transition all of Medicare to a flexible health insurance program that federal employees enjoy. According to CBO scoring, this new system would lower beneficiary premiums by 7 percent.
  • In order to ensure the solvency of the program for future generations, the budget gradually phases in a premium increase so that the contributions of senior citizens are equivalent to taxpayer contributions. The budget also adjusts the age of eligibility to bring the program in line with current life expectancy rates.
  • The budget improves patient freedom by allowing seniors enrolled in Medicare Parts A and B to contribute to Health Savings Accounts (HSAs). This budget also allows seniors to keep their Social Security benefits if they keep their private insurance and opt out of Part A.
     

Repealing Obamacare and Fixing Healthcare

For far too long, Washington bureaucrats have had undue influence on the healthcare system. The RSC budget contains numerous reforms that bring healthcare choices back to patients, states, and doctors, saving taxpayers $3 trillion over ten years. For example:

  • The RSC budget expands Health Savings Accounts (HSA) so that healthcare consumers have greater flexibility and better control over their healthcare spending.
  • By any measure, Obamacare has been disastrous for the American people. Premiums have doubled in the past six years and healthcare choices are dwindling for families all across the country. The RSC budget fully repeals Obamacare and all of its tax hikes on the American people. This would save $1.3 trillion in taxpayer money over the next decade, and return critical healthcare decisions to patients and their doctors.
  • The budget creates new block grants out of Medicaid and the Children’s Health Insurance Program (CHIP) in order to give states increased flexibility. The budget expands CHIP eligibility by removing the income floor so that states can help all children in low-income families. These new grants would allow states to cover the four core groups that Medicare is supposed to cover. A flex grant would also be available to subsidize the care of the remaining population.

Photo Credit: GotCredit


Grover Norquist and Bill Maher Agree on Stupidity of “Free College” Proposal

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Posted by Tom Hebert on Tuesday, April 30th, 2019, 12:56 PM PERMALINK

On HBO's Real Time with Bill Maher, ATR President Grover Norquist and host Bill Maher came to agreement in opposing Elizabeth Warren's "free" college plan. 

Click here to watch the video. 

"So nothing is free like a free lunch," Maher said. "Neither is college. Somebody will be paying for this free college and it will be taxpayers. so are we really saying that someone who didn't go to college should be subsidizing the people who went and got the benefit of going to college and made more money?" 

Norquist agreed, and highlighted the massive disparity in the plan's beneficiaries. 

"That's an incredible transfer from lower income people to higher income people," Norquist said. "If you look at the beneficiaries of that proposal, it is a huge subsidy to the higher income people." 

"If you're out buying votes, you go with the people you think are going to vote," Norquist continued. 

The left has pushed "free" college proposals for years. 2016 presidential candidate Hillary Clinton pushed a free community college plan that would have increased income taxes by $350 billion. 

Warren's plan goes even further, cancelling student debt for 95 percent of Americans and making tuition free for public universities. In her proposal, Warren buries the cost of her plan — $1.25 trillion over 10 years. The debt cancellation portion would create a "one-time cost" to the taxpayers of $640 billion.

Predictably, Warren plans on paying for "free" college with her horribly misguided (and probably unconstitutional) wealth tax

As it turns out, Americans don't like massive tax hikes to pay for costly new entitlement programs. 

Photo Credit: Janet Van Ham/HBO


Economy Roars On With 3.2% GDP Growth

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Posted by Tom Hebert on Friday, April 26th, 2019, 10:38 AM PERMALINK

America’s real GDP grew 3.2 percent in the first quarter of 2019, shattering industry expectations and showing that the GOP tax cuts and regulatory relief are continuing to have positive effects on the U.S. economy.

The Bureau of Economic Analysis report shows that expanded exports and increased private investment drove this economic upswing. This 3.2 percent growth is up from 2.2 percent real GDP growth in the fourth quarter of 2018, showing that the economy continues to charge ahead in leaps and bounds. Quarterly GDP growth has averaged 3 percent over the five quarters since President Trump signed the Tax Cuts and Jobs Act (TCJA) into law.

"More economic growth is not just a nice number. It means more jobs, higher wages, more opportunities and a stronger nation," said Grover Norquist, president of Americans for Tax Reform.
 

The BEA report also shows that disposable personal income increased by 3 percent, or $116 billion, in Q1 of 2019. Additionally, gross private investment is up by 5.1 percent.

This explosive growth comes alongside a host of other economic good news. According to the Bureau of Labor Statistics, over 2.6 million jobs were created in 2018, and nearly 5.5 million have been created since President Trump took office. Job openings sit at 7.6 million, a record high. The unemployment rate is a near-record low of 3.8 percent, and the number of people claiming unemployment benefits is at a 50-year low. Nominal wages have grown by 3.4 percent over the last year, a 10-year high. The stock market is also hitting record highs and the trade deficit is narrowing.

Home values have also remained stable, proving opponents of the GOP tax cuts wrong yet again. According to the left-wing Washington Post, home sales rose 12 percent in February, the largest month-over-month gain since 2015. Median home prices also rose 3.6 percent in February, a continuation of 7 years of month-over-month gains.

This economic report is yet another sign that the Trump tax cuts are working as intended. Contrary to Nancy Pelosi, who said that letting people keep more of their own money was “Armageddon,” the sky is not falling. Thanks to the Tax Cuts and Jobs Act, American is open for business again.

Photo Credit: Gage Skidmore


Trump’s Trade Deal Is A Win For American Workers

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Posted by Tom Hebert on Monday, April 22nd, 2019, 4:04 PM PERMALINK

A new report from the U.S. International Trade Commission indicates that President Trump’s new trade deal will create American jobs and grow the economy.

Trump has put renegotiating trade deals with other countries at the forefront of his legislative agenda. The United States — Mexico — Canada Trade Agreement (USMCA) updates NAFTA to include new automotive rules, new protections for intellectual property rights, and modernizing agricultural trade to benefit American farmers.

According to the report, the USMCA would raise U.S. real GDP by $68.2 billion and create approximately 176,000 American jobs. The USMCA would increase U.S exports to Canada by $19.1 billion, and increase U.S. exports to Mexico by $14.2 billion. Under the new agreement, U.S. imports from Canada are projected to increase by $19.1 billion, and U.S. imports from Mexico are projected to increase by $12.4 billion. The report estimates that the USMCA would have a positive impact on all U.S. industry sectors, with the manufacturing and services sectors experiencing the most gains.

The USMCA would contribute to already strong economic growth. According to the Bureau of Labor Statistics, over 2.6 million jobs were created in 2018, and nearly 5.5 million have been created since President Trump took office. Job openings sit at 7.6 million, a record high. The unemployment rate is a near-record low of 3.8 percent, and the number of people claiming unemployment benefits is at a 50-year low. Nominal wages have grown by 3.4 percent over the last year, a 10-year high.

Thanks to Republican pro-growth policies like tax reform and deregulation, the U.S. economy is working for American workers. Swift ratification and adoption of the USMCA would continue to build on this economic success.

Photo Credit: Gage Skidmore


10 Facts the Media Won’t Tell You About the GOP Tax Cuts

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Posted by Tom Hebert on Friday, April 12th, 2019, 1:45 PM PERMALINK

[Click here for a PDF of this list]

Here are 10 facts about the Republican-passed Tax Cuts and Jobs Act that the media doesn't want you to know. 

  1. Thanks to tax reform, middle class families 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 households with income between $40,000 and $64,000 saw a tax cut. Average size of that tax cut: $810.  
    • 91 percent of households with income between $64,000 and $108,000 saw a tax cut. Average size of that tax cut: $1,400
       
  3. Taxes are down 25 percent this year and biweekly paychecks are up by $50 on average:
    • Households are paying lower taxes, down 24.9 percent on average following passage of the Tax Cuts and Jobs Act, according to a report released by H&R Block based on their clients’ tax returns.
    • The tax cuts caused biweekly paychecks to increase $50 per paycheck.
    • The report also breaks down change in tax liability by state. Taxpayers in every state have seen average tax reduction of at least 18 percent: “all 50 states and D.C. saw their average tax liability decrease anywhere from 18.0 percent to 29.1 percent.”
       
  4. Tax rates were cut and pro-middle class provisions were implemented across the board:
    • The middle class marginal tax rates were slashed from 15 and 25 percent to 12 and 22 percent
    • 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.
    • The Tax Cuts and Jobs Act doubled the child tax credit from $1,000 to $2,000 per child.
    • 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.
       
  5. Wages are growing and the job market is strong:
    • Over 2.6 million jobs were created in 2018 and over 5.4 million jobs have been created since the beginning of 2017 according to the Bureau of Labor Statistics.
    • Nominal wages have grown by 3.4 percent over the last year, a ten-year high.
       
  6. Unemployment is hitting historic lows:
    • The unemployment rate is at 3.8 percent. In September, the unemployment rate hit 3.7 percent, a 50 year-low.
    • The hispanic unemployment rate in March 2019 was 4.7 percent, and reached a record low of 4.3 percent in February 2019
    • The African American unemployment rate in March 2019 was 6.7 percent, hitting a record low of 5.9 percent in May 2018. 
    • The number of people collecting unemployment benefits is at a 50-year low, and jobless claims have dropped to the lowest level since 1969. 
       
  7. Thanks to tax reform, American families saw relief from the highly regressive 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 repealed 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:
    • 6,665,480 individuals and families paid a total of $3,079,255,000 in individual mandate tax penalties in 2015.
      1. 37.35 percent of taxpayers (2,489,490 households) that paid the individual mandate made less than $25,000 in annual income.
      2. 78.98 percent of taxpayers (5,264,380 households) that paid the individual mandate made less than $50,000 in annual income.
         
  8. Business confidence is hitting all-time highs following tax reform:
    • Small business optimism is strong, hitting a record high of 108.8 in August 2018 and continues to trend above the historical average at 101.2.
    • Optimism amongst manufacturers hit a record high of 92.4 percent in 2018 according to the National Association of Manufacturers. 
    • Optimism among middle market businesses hit a record high of 136.7 in 2018. 
       
  9. Employers large and small have responded to tax reform by raising pay, creating new jobs, increasing employee benefits, and expanding operations. 
    • Americans for Tax Reform has compiled a list of powerful stories of business owners explaining how the Tax Cuts and Jobs Act has helped them grow their businesses and help their employees.
    • Click here for ATR’s list of over 800 in-their-own-words examples of how the Republican tax cuts have helped businesses large and small.
       
  10. Utility companies in all 50 states are passing on the tax savings in the form of lower rates for customers:
    • This means lower electric bills, lower gas bills, and lower water bills for Americans than if the corporate rate cut had not occurred.

 

[Click here for a PDF of this list]

Photo Credit: Gage Skidmore


Elizabeth Warren Calls for $1 Trillion Business Tax Hike

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Posted by Tom Hebert on Thursday, April 11th, 2019, 11:05 AM PERMALINK

Democratic presidential hopeful and U.S. Senator Elizabeth Warren (D-Mass.) today proposed a new, $1 trillion tax on American businesses.

Warren’s proposal would impose a 7 percent tax on the revenues of American corporations.  This new tax would apply on top of the 21 percent corporate income tax and would apply to worldwide income of American companies that has already been taxed in the country where it was earned. According to her estimates, this plan would raise $1 trillion over a decade.

This proposal would increase the amount of money the federal government collects from corporations by 30 percent and also increase compliance costs for businesses, as calculating the surcharge requires a different accounting method.

This tax hike is also likely just the tip of the iceberg as Warren told POLITICO she intends to propose more corporate tax increases: “our corporate tax code is so littered with loopholes that simply raising the regular corporate tax rate alone is not enough.”

Increasing taxes on businesses will make America less globally competitive and will undercut today’s strong economic growth, growing wages, record job openings, and lower utility bills.

This is just the latest tax hike coming from Democrats in the House and Senate:

  • Days into the new Congress, the new House Democrat Majority changed the rules to make it easier to raise taxes on the American people.
  • Alexandria Ocasio Cortez (D-NY) has proposed a top income tax rate of 70 percent. Many others have suggested applying this rate to capital gains income.
  • House Speaker Nancy Pelosi (D-Calif.) has called for repeal of the entire GOP tax cuts. This would see 90 percent of wage earners face higher taxes, and a family of four earning $73,000 in annual income seeing a tax increase of roughly $2,000 per year.
  • Bernie Sanders has proposed over $16 trillion in higher taxes as part of his proposal for a government takeover of the American healthcare system.
  • Warren has called for a wealth tax which would force some Americans to hand over 3 percent of their wealth to the government every year.
  • Democrats rejected a proposal by Ways and Means Ranking Member Kevin Brady (R-Texas) to extend middle class tax relief.  This amendment would have made the $2,000 child tax credit (up from $1,000) and the $24,000 standard deduction for families (up from $12,000) permanent for American families.
  • House Majority Whip Jim Clyburn (D-SC) has proposed legislation that would raise the corporate rate in order to restore non-profit deductibility of fringe transportation benefits. While the bill proposes a modest rate hike to 21.03 percent, it would undermine the success of the GOP tax cuts and open the door to additional corporate rate hikes to pay for leftist spending priorities.
  • Senator Brian Schatz (D-HI) and Congressman Peter DeFazio (D-Ore.) have introduced legislation that would institute a financial transactions tax of 0.1 percent on the sale of any stocks, bonds, and derivatives.
     

Photo Credit: Marc Nozell


ATR Supports the Freedom for Families Act

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Posted by Tom Hebert on Wednesday, April 10th, 2019, 4:37 PM PERMALINK

Rep. Andy Biggs (R-Ariz.) has introduced the “Freedom for Families Act,” legislation that allows individuals or families to use funds from Health Savings Accounts (HSAs) to cover expenses during the birth or adoption of a child, as well as in the event of a serious family illness. Unlike most paid family leave proposals, this bill harnesses the free market to empower families to control their savings and leave. ATR supports this legislation and urges Members of Congress to co-sponsor this proposal.

H.R. 2163 allows families to use HSA dollars to pay for family leave regardless of their employment situation. Individuals that are qualified for federally-mandated leave, unpaid leave, or are currently unemployed can use HSA funds to pay for their leave. The bill also removes unnecessary restrictions on HSAs by increasing the annual contribution limit so families can exert more control over their savings. Under this bill, HSA contributions increase to $9,000 for individuals and $18,000 for joint filers. 

HSAs are vital for American families. They are used in conjunction with low premium, high-deductible health insurance plans and allow families to spend their own money on their own health needs. Since they were created 16 years ago, HSAs have become a popular vehicle toward promoting patient choice in health care and are today used by an estimated 25 million American families and individuals.

There are several advantages to using HSA funds to pay for leave. 

  • HSAs are portable, which allows individuals to carry funds from one job to the next without fear of losing their accrued benefits. 
  • There is no minimum period of employment to use these funds, and no need to pay them back once you’ve used them.
  • Contributions are completely voluntary, and completely customizable to the needs of families and individuals. 
  • Contributions can be made by the account holder, family members, or businesses alike. 
  • There is no need to borrow against retirement or delay retirement to take leave. 
     

Instead of embracing a top-down, one-size-fits-all approach to paid family leave that would impose onerous costs and federal mandates on American businesses, the Freedom for Families Act empowers families to control their savings and leave. Congress should pass this legislation, and President Trump should sign it into law. 

Photo Credit: Gage Skidmore


Dems Wrong to Target Stock Buybacks

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Posted by Tom Hebert on Tuesday, April 9th, 2019, 4:11 PM PERMALINK

Sen. Tammy Baldwin (D-Wis.) has introduced legislation that would restrict the right of companies to repurchase its shares on the open market, also known as stock buybacks.

Critics of stock buybacks claim that this repurchases come at the expense of investment in workers or the economy. In fact, by repurchasing shares, these companies are using excess capital to reinvest in themselves and create value for their shareholders.

Ending stock buybacks would harm economic growth. The economy is strong right now — between Q4 of 2017 and Q4 of 2018, GDP growth was 3.1 percent, dwarfing the anemic 1.8 percent average during the Obama administration. Nominal wages have grown by 3.4 percent over the last year, job openings sit at a record high of 7.6 million, and the unemployment rate is at 3.8 percent. Since Trump took office, the economy has added 5.1 million jobs, including nearly 400,000 in 2019 so far.

Restricting stock buybacks would also harm the 55 million workers that own a 401k and the 54 percent of Americans that own stocks. A recent floor speech by Sen. Pat Toomey (R-Pa.) highlights how stock buyback elimination would harm these workers:

“This idea would be very harmful to the people that it's presumably meant to help. You know about 40% of all equities in the U.S. are held in pension and retirement accounts. These are the accounts of teachers and cab drivers and truck drivers and folks who work at factories and do every other job that our economy depends on who put a little money away. It's in a 401k plan or it's in an IRA or it's in an employer-sponsored pension plan.”

Banning stock buybacks is a terrible idea that would have a cascade of negative effects to our economy. Sen. Baldwin and Senate Democrats should abandon this misguided legislation

Photo Credit: Lacy Landre- Flickr


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