House Blueprint Calls for Free Market, Patient Centered Healthcare Reform
Congressional Republicans recently unveiled their blueprint to repeal and replace Obamacare with commonsense free-market alternatives. Obamacare has approached healthcare with a “government knows best” mentality, and the GOP blueprint draws a sharp contrast by calling for increased choice and competition in order to lower costs, improve quality, and ensure all Americans have access to the healthcare that best suits their individual needs.
The blueprint starts by repealing Obamacare and its taxes, mandates, slush funds, and wasteful spending programs. The proposal replaces these failed policies with a series of conservative, free market reforms that end a number of distortions and promote individual choice and responsibility. The blueprint also strengthens Medicare and Medicaid to ensure these programs are equipped to provide for the most vulnerable in our society, and calls for promoting and protecting medical innovation to ensure America remains a leader in life-saving and life-improving medicines.
Repeals Obamacare Taxes, Mandates, and Slush Funds
The blueprint calls for repeal of ALL Obamacare taxes including the chronic care tax, the individual mandate tax, the tax on Flexible Savings Accounts, the tax on Health Savings Accounts, the Cadillac tax on employer health insurance, the tax on medical devices, the tax on prescription medicine, the tax on employers, and the tax on health insurers.
The proposal also ends wasteful spending programs by repealing the “Obamacare Public Health” slush fund, and stopping risk corridor and reinsurance corporate welfare payments. Finally, the plan repeals the individual and employer mandates which needlessly penalize individuals and businesses.
Provides Greater Flexibility
In place of Obamacare, the House GOP blueprint calls for a healthcare “backpack” – insurance that is tailored to individual needs and allows flexibility. One centerpiece of this proposal replaces the flawed and highly wasteful Obamacare tax credit with an efficient flat credit that is adjusted based on age. This credit is refundable so that if a plan costs less than the credit, the individual can spend whatever is leftover through an HSA-like account.
This replaces the restrictive approach taken by Obamacare with a flexible alternative that allows individuals to choose healthcare that best fits their needs.
Expands Health Savings Accounts
Health savings accounts, or HSAs are tax-advantaged accounts which are used to pay for routine, out-of-pocket medical expenses. They are used in conjunction with insurance plans which tend to cover large and/or unexpected health events and allow individuals to make choices that best fit their needs.
The plan first eliminates the many restrictions that Obamacare placed on HSAs and then expands them to eliminate needless restrictions on contribution limits and accessibility. These reforms will better encourage healthcare freedom so Americans have access to patient centered care that best fits their needs.
Promotes Innovation
It takes about 14 years and $2 billion in research and development medical costs with more than 95 percent of drugs failing to make it through this long process. While this process is lengthy and costly, it inevitably leads to significant long-term health benefits and savings within the medical system. Obamacare has only made this arduous process worse with a tax on new medical devices, further slowing innovation.
The GOP blueprint calls for reforms to medical innovation based off the bipartisan 21st Century Cures Act passed by the House last year. This plan calls for streamlining the innovation process by reforming the FDA so that new medicines can come online faster. The plan also calls for modernizing clinical trials, providing more appropriate incentives, removing regulatory uncertainty, and increased collaboration between stakeholders.
By protecting and promoting medical innovation this plan will allow for the creation of the next generation life-saving and life-threatening medicines that will ensure stronger, most cost effective healthcare solutions in future decades.
Protects Seniors
Medicare spending will double within the next ten years and the program is projected to become insolvent by 2030. This looming insolvency is addressed through a three step approach that also strengthens the program.
First, the plan repeals the needless Medicare regulations contained in Obamacare, like the Independent Payment Advisory Board and cuts to Medicare Advantage. Second, it adopts a series of smart reforms and updating out-of-date regulations that protect the patient doctor relationship and patient choice. Third, the proposal implements reforms that ensure Medicare is around for future generations by transitioning to a more competitive premium support model that does not disrupt the current program.
Reforms and Preserves Medicaid
This year, total Medicaid spending will reach $545 billion, even as the program has been plagued by high risk of fraud and inadequate oversight. For years, federal watchdogs have warned of millions in fraudulent or improper payments and countless cases of patient abuse, neglect, and theft. Under Obamacare, millions of able bodied adults have been added to Medicaid, even as the program is failing to provide care for our most vulnerable.
The GOP blueprint calls for addressing these issues through reforms to the funding structure that set more appropriate incentives that encourage resources to the nations most vulnerable. The program also provides states with better tools, resources, and flexibility by giving them the choice of a block grant or a per capita allotment. Streamlining the funding process will not only ensure that Medicaid enrollees have access to more appropriate care, it will also cut down on waste and promote more efficient allotment of resources.
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ATR Supports Trump's Protection of American Intellectual Property
In a recent announcement from the White House, President Donald Trump has followed through on his promises to protect American intellectual property rights. As a candidate, President Trump claimed that protecting intellectual property rights could “save millions of American jobs.” The recent Presidential Memorandum signing directs the United States Trade Representative to examine whether China should be investigated for “unreasonable or discriminatory policies that may harm American IP rights, innovation, or technological development.”
Americans for Tax Reform sent out a letter praising President Trump for his commitment to intellectual property rights. Americans for Tax Reform, along with 69 other groups, have agreed upon principles of which are the utmost importance in preserving intellectual property rights both at home and abroad. These principles include that IP rights are vital to job growth and economic competitiveness. We believe China has been particularly brazen in coopting American innovation and profiting from American investment in research, development, and intellectual capital. Practices by China to restrict market entrance and technology transfer have been a particular hindrance.
To see the letter ATR signed on to click here.
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ATR Launches Campaign to Stop Health Insurance Tax, Reinforce Need for Repeal of All ObamaCare Taxes
Today, Americans for Tax Reform launched a significant campaign across a number of different electronic media, highlighting the need to stop those Obamacare taxes that haven't yet taken effect - particularly the Health Insurance Tax - while we work toward the repeal of all Obamacare taxes.
We need to get rid of all Obamacare taxes. Allowing more Obamacare taxes to go into effect should simply be out of the question.
The effort to fully abolish the Obamacare tax burden on families and businesses should be divided into two steps:
In the short-term, Congress must quickly act to ensure that the health insurance tax and medical device tax are delayed. Failing to act will mean both taxes go into effect at the end of 2018, which will cause costs to skyrocket even higher.
At the same time, lawmakers must continue to press for the repeal of all of the Obamacare trillion dollars in new or higher taxes. These taxes have increased healthcare costs, restricted access to care, and harmed economic growth. Since its inception, Obamacare has imposed numerous taxes on the American people including a tax for failing to purchase government approved health insurance, a tax on innovative medicines, multiple taxes on Health Savings Accounts and Flexible Spending Accounts, and even a tax on families with high medical bills.
All of these taxes impact the middle class - either directly hitting families' paychecks or by increasing the cost of healthcare goods and services. On the other hand, repealing these taxes will reduce the federal government's control over healthcare and return power to caregivers and patients.
While all Obamacare taxes should be repealed, lawmakers must also act quickly to ensure that they do not allow a tax hike to go into effect under their watch. If they fail to act, the medical device tax and health insurance tax will become law on January 1, 2018, resulting in higher premiums and higher costs for middle class families, seniors, and small businesses.
The Obamacare health insurance tax hits 11 million households that purchase through the individual insurance market and 23 million households covered through their jobs. Half of this tax is paid by those earning less than $50,000 a year and it is responsible for increasing premiums by an average of $5,000 per family over a decade according to research by the American Action Forum.
The health insurance tax also hits 1.7 million small businesses, costing an estimated 286,000 small business jobs and $33 billion in lost sales.
The $30 billion medical device tax is similarly harmful to businesses. It could cost as many as 25,000 lost jobs by 2021 if it is not delayed, and because it is levied as an excise tax on medical devices, the costs of this tax are almost entirely passed onto consumers in the form of higher products, as noted by the Congressional Research Service.
Obamacare's taxes have already driven costs up, reduced choice, and needlessly punished American families with higher taxes. The last thing that taxpayers need or deserve is even more damaging Obamacare taxes to go into effect.
Instead, Congress should work on healthcare reform that is focused on lower costs that includes repeal of Obamacare taxes -- first by ensuring that the health insurance tax and medical device tax do not go into effect -- and then working to repeal all trillion dollars of the law's taxes.
Norquist: “Trump’s Infrastructure EO Increases Accountability, Efficiency and Saves Taxpayer Dollars”
Americans for Tax Reform President Grover Norquist this week issued the following statement praising President Trump’s Executive Order that seeks to increase accountability and efficiency in the review and permitting process for infrastructure projects.
“President Trump’s Executive Order issued this week represents a much needed step in reducing waste and inefficiency in the environmental review and permitting process for infrastructure projects.
“For too long permitting and review processes surrounding U.S. infrastructure projects have been mired in a sea of red tape and bureaucratic roadblocks. Needed improvements to the highways, tunnels, roads and bridges that keep America moving are delayed and the costs driven up.
“According to the Government Accountability Office, complex infrastructure projects can be delayed for an average of 7 years while going through the environmental review process. Studies show that an average 6-7 year delay for major infrastructure projects costs the American economy over $3.7 trillion dollars.
“The Executive Order issued by President Trump this week would be a first step in correcting these issues. Under the President’s Executive Order, a 2-year timeline is established for the Federal Government to process reviews and permits for major infrastructure projects.
“The Executive Order also requires agencies to track the costs of conducting reviews and making permitting decisions. The Order further replaces the patchwork of agency reviews with a consolidated approach that establishes a One Federal Decision Policy, whereby one Federal agency will take the lead on reviews and permitting decisions.
“President Trump’s actions this week will begin the process of improving the efficiency with which American infrastructure projects are carried out by increasing agency accountability, streamlining the permitting and review processes, and inevitably saving U.S. taxpayer dollars.”
Photo credit: Gage Skidmore
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The IRS Fired Agents for Snooping, Then Re-Hired Them!
The IRS has a long history of taxpayer abuse and utter incompetence, and the latest Treasury Inspector General for Tax Administration (TIGTA) report shows this is still the case. Throughout January 2015 to March 2016, the IRS rehired more than 200 employees who were previously employed by the agency, but fired for previous conduct or performance issues.
One would hope that the tax collecting arm of the federal government would hire employees of the upmost character and work effort “given the substantial threat of identity theft and the magnitude of sensitive information that the IRS holds”. In the hopes of ensuring that the IRS holds themselves to high standards, and exposing them when they don’t, TIGTA audits the IRS and makes policy recommendations, compiling their findings in reports submitted to Congress.
According to their report:
- 86 of the 213 employees rehired were previously fired for abuse of absence/leave, workplace disruption, or a failure to follow instructions
- “27 former employees failed to disclose a prior termination or conviction on their application, as required, and were rehired by the IRS”
- Four former employees were rehired after they “separated while under investigation for unauthorized accesses to taxpayer information”
- “One rehired employee had several misdemeanors for theft and a felony for possession of a forgery device”
- “Another rehired employee had threatened his or her co-workers”
- A number of other rehired employees “willfully failed to meet their Federal tax responsibilities”
Prior TIGTA reports identified the same issue at hand in years past, but found that despite pressure for reform, the IRS did not update any hiring procedures, resulting in another year of continued practices of hiring incompetent employees, setting the stage for taxpayer neglect and abuse.
Much in line with their track record of targeting conservative media outlets, and their destruction of a hard drive containing 24,000 Lois Lerner emails, they have yet again failed to show taxpayers the respect they deserve, refusing to improve their rampant disregard for the law. One must hope that the next TIGTA report shows some degree of progress, however unlikely that may be.
Photo Credit: Ray Tsang
Oregon Bike Tax Proves Nothing is Safe from Taxation
The Oregon Legislature is about to make unfortunate history as the first state to enact a bike tax. This comes as a surprise since Oregon, especially Portland, is known for its avid cycling culture. The state is even home to the head of the Congressional Bike Caucus, Rep. Earl Blumenauer (OR-3). Despite these factors, government proves yet again that it will tax anything that moves.
This unprecedented tax is part of a $5.3 billion transportation package that Democratic Gov. Kate Brown is expected to sign into law later this month. Once enacted, all bike purchases over $200 with a wheel diameter of at least 26 inches will be subject to a $15 tax. It is expected to cost the taxpaying cyclists of Oregon $1.2 million per year.
While the government states the funds will be used to improve non-motorized transportation, some Oregonians remain skeptical, like Bill Cole, owner of Wheelworks Bicycle Shop in Eugene, OR.
“The idea of having money going directly to support bicycling I think is a good idea. But once a tax gets started, it never stops. And it only increases,” Cole said.
Not only are consumers adversely affected by this tax, but local bike shops will especially feel its consequences. In specialty bike stores where more mid- to high-end bikes are sold, the average price of a bicycle is $714. As a result, the vast majority of purchases will be subject to the tax. However, big box retailers that sell cheaper bikes, at an average of $82, will typically avoid the tax and its negative effects. By indirectly targeting “mom and pop” bike stores, Oregon’s new tax will harm these small businesses.
Opposition to this tax has brought together groups—conservatives and environmentalists—that generally find little to agree upon. By taxing biking, a healthy and environmentally friendly method of transportation and leisure, the Oregon legislature sends the message that it cares more about revenue than both taxpayer well-being and environmental concerns.
By singling out a single product and activity to punitive taxation, the Oregon bike tax represents the exact opposite of sound policy. As a lone positive takeaway from this misguided tax, this situation presents an opportunity to educate progressive bike tax opponents who typically endorse higher taxes in other areas. If a tax on new bikes leads to fewer people biking or purchasing bikes, as cycling advocates have stated, then the same can be said for higher taxes on income and investment.
Photo Credit: Robert Ashworth
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Congress Should Delay Imminent Healthcare Taxes, Then Repeal All Obamacare Taxes
Following the failure to pass conservative healthcare reform that included repeal of key parts of Obamacare, Congressional Republicans have said they will now pursue smaller reforms aimed at reducing costs and stablizing the markets.
While the debate will likely focus on the size and scope of regulations and subsidies, lawmakers should also push to repeal Obamacare’s many burdensome taxes. The effort to reduce the Obamacare tax burden on families and businesses should be divided into two steps.
In the short-term, Congress must quickly act to ensure that the health insurance tax and medical device tax are delayed. Failing to act will mean both taxes go into effect at the end of 2018, which will cause costs to skyrocket even higher.
Over the long-term, lawmakers must repeal Obamacare’s trillion dollars in new or higher taxes. These taxes have increased healthcare costs, restricted access to care, and harmed economic growth.
Since its inception, Obamacare has imposed numerous taxes on the American people including a tax for failing to purchase government approved health insurance, a tax on innovative medicines, multiple taxes on Health Savings Accounts and Flexible Spending Accounts, and even a tax on families with high medical bills.
All of these taxes impact the middle class – either directly hitting families’ paychecks or by increasing the cost of healthcare goods and services. On the other hand, repealing these taxes will reduce the federal government’s control over healthcare and return power to caregivers and patients.
While all Obamacare taxes should be repealed, lawmakers must also act quickly to ensure that they do not allow a tax hike to go into effect under their watch. If they fail to act, the medical device tax and health insurance tax will become law on January 1, 2018, resulting in higher premiums and higher costs for middle class families, seniors, and small businesses.
The Obamacare health insurance tax hits 11 million households that purchase through the individual insurance market and 23 million households covered through their jobs. Half of this tax is paid by those earning less than $50,000 a year and it is responsible for increasing premiums by an average of $5,000 per family over a decade according to research by the American Action Forum.
The health insurance tax also hits 1.7 million small businesses, costing an estimated 286,000 small business jobs and $33 billion in lost sales.
The $30 billion medical device tax is similarly harmful to businesses. It could cost as many as 25,000 lost jobs by 2021 if it is not delayed, and because it is levied as an excise tax on medical devices, the costs of this tax are almost entirely passed onto consumers in the form of higher products, as noted by the Congressional Research Service.
Obamacare’s taxes have already driven costs up, reduced choice, and needlessly punished American families with higher taxes. The last thing that taxpayers need or deserve is even more damaging Obamacare taxes to go into effect.
Instead, Congress should work on healthcare reform that is focused on lower costs that includes repeal of Obamacare taxes– first by ensuring that the health insurance tax and medical device tax do not go into effect, and then working to repeal all trillion dollars of the law’s taxes.
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EU Workers Still Face High Taxes
Recently, the Institut économique Molinari (IEM) released a study to compare the tax and social security burdens of individual employees earning a typical salary in the European Union. Using this data, they worked out the “Tax Liberation Day” for each nation, the day of the year when employees would earn enough to pay their annual tax burden.
Essentially, it marks the day workers stop working earning money for the government and instead begin working for themselves. The further into the year the day is, the greater burden each government places upon its citizens.
Workers across the EU saw an average real tax rate of 44.8%, nearly half of which (44.4%) is invisible to the employees themselves through payroll taxes. This is a marginal decrease from 2016, which had a rate of 44.96%. The “real tax rate” is calculated by adding social security contributions, income tax, and value added taxes, then dividing this number by the real gross salary.
The nation with the highest tax rate was France, coming in at 57.41% and a Tax Liberation of July 29th, where it has been for the last three years. Hungarian workers have also seen a significant gain, moving from August 6th in 2010 to July 5th. However, Greece has moved the opposite direction, from June 13th in 2010 to July 10th.
According to the study, the future seems difficult for European workers, who are spending more money on pensions and health care expenditures, but have a declining labor force participating, despite decreased unemployment. It concludes that the best hope against future tax increases is decreased expenditures and economic growth. The study and a full list of where the Tax Liberation Day lands for each European Union nation can be found here.
Photo Credit: HajjiBaba
36 Conservative Groups and Activists: Congress Must Stop New Obamacare Taxes
Lawmakers must act to prevent Obamacare taxes from going into effect next year, 36 conservative groups and activists wrote in a letter addressed to House Speaker Paul Ryan (R-Wis.) and Senate Majority Leader Mitch McConnell (R-Ky.).
Absent Congressional action, the Obamacare health insurance tax and medical device tax will both go into effect in 2018. As the coalition notes, this would be unacceptable and would harm taxpayers across the country:
"Unless Congress acts soon, both tax increases will go into effect on January 1, 2018, leading to higher premiums and higher costs for middle class families, seniors, and small businesses."
Specifically both taxes directly harm middle class families and small businesses. For example, half of the Obamacare health insurance tax is paid by those earning less than $50,000 a year and it increases premiums by as much as $5,000 per family. Similarly, it is estimated the medical device tax could lead to more than 25,000 lost jobs by 2021.
As such it is imperative that Congress stops these taxes from going into effect next year as soon as possible.
The full letter can be found here and is below:
August 10, 2017
The Honorable Paul D. Ryan
Speaker, United States House of Representatives
H-232, The Capitol
Washington, D.C. 20515
The Honorable Mitch McConnell
Majority Leader, United States Senate
S-230, The Capitol
Washington, D.C. 20510
Dear Speaker Ryan & Leader McConnell:
We write to urge you to prevent Obamacare’s tax on Americans’ health insurance and the medical device tax from going into effect in 2018. Unless Congress acts soon, both tax increases will go into effect on January 1, 2018, leading to higher premiums and higher costs for middle class families, seniors, and small businesses.
Ideally, both the health insurance tax and medical device tax should be repealed permanently, as should all one trillion dollars of Obamacare taxes. However, given the recent collapse of healthcare reform legislation, lawmakers should act to delay these two taxes so they do not hit taxpayers in 2018.
Allowing the health insurance tax to go into effect in 2018 will directly hurt middle and low-income families. Half of the tax is paid by those earning less than $50,000 a year and it will increase premiums by $5,000 per family over the next decade according to research by the American Action Forum.
In total, the tax hits 11 million households that purchase through the individual insurance market and 23 million households covered through their jobs. Next year alone, the tax will total $14.3 billion. Over a decade, these taxpayers will pay roughly $150 billion more if the tax is not repealed.
The health insurance tax is also devastating to small businesses. It is estimated to directly impact as many as 1.7 million small businesses. According to the National Federation of Independent Business, the tax could cost up to 286,000 in new jobs and cost small businesses $33 billion in lost sales by 2023.
The 2.3 percent medical device tax is also harmful to small businesses. There are more than 6,500 medical device companies in the U.S., 80 percent of which have fewer than 50 employees. The industry contributes $150 billion annually to the economy. The tax impairs the industry’s ability to innovate, invest, and create jobs.
If Congress allows it to go into effect in 2018, the medical device tax could lead to more than 25,000 lost jobs by 2021. Over the next decade, this excise tax is projected to increase taxes by $30 billion.
Small businesses account for half of all jobs in the U.S. and two-thirds of new jobs in recent decades, so the health insurance tax and medical device tax mean businesses are able to spend less on new workers, higher wages, or new equipment.
Absent full repeal, Congress must use the remaining months of the year to delay the health insurance tax and medical device tax so they do not go into effect in 2018 and increase taxes.
Congress’ failure thus far to repeal Obamacare taxes – including the tax on Americans facing high medical bills, taxes on health savings accounts, a tax on prescription medicines,and the tax for failing to buy health insurance—have already been devastating to American families, seniors, and businesses.
As you continue working to repeal these taxes, the last thing taxpayers need is even more taxes to go into effect.
Sincerely,
Grover Norquist
President, Americans for Tax Reform
James L. Martin
Founder & Chairman, 60 Plus Association
Leigh Hixon
Senior Director of Policy Relations, Alabama Policy Institute
Lisa B. Nelson
CEO, American Legislative Exchange Council
Ashley N. Varner
Executive Director, ALEC Action
Dan Weber
President, Association of Mature American Citizens
Norm Singleton
President, Campaign for Liberty
Jeff Mazzella
President, Center for Individual Freedom
Chuck Muth
President, Citizen Outreach (Nevada)
Chip Faulkner
Executive Director, Citizens for Limited Taxation Massachusetts
Tom Schatz
President, Council for Citizens Against Government Waste
Katie McAuliffe
Executive Director, Digital Liberty
Richard Watson
Chairman, Florida Center Right Coalition
Annette Meeks
CEO, Freedom Foundation of Minnesota
Adam Brandon
President, FreedomWorks
Grace-Marie Turner
President, Galen Institute
Kelly McCutchen
President, Georgia Public Policy Foundation
Carrie L. Lukas
President, Independent Women's Forum
Heather R. Higgins
President and CEO, Independent Women's Voice
Jenna A. Robinson, Ph.D.
President, The James G. Martin Center for Academic Renewal
Sal J. Nuzzo
Vice President of Policy, The James Madison Institute (Florida)
Stephen Waguespack
President and CEO, Louisiana Association of Business and Industry
Mary Adams
Chair, Maine Center-Right Coalition
Pem & Ruth Schaeffer
Maine Conservative Activists
The Honorable Kurt Zellers
Chair, Minnesota Center-Right Coalition
Henry Kriegel
President, Montanans for Tax Reform
Pete Sepp
President, National Taxpayers Union
The Honorable William O'Brien
Former Speaker, New Hampshire House of Representatives
Co-chair, New Hampshire Center Right Coalition
The Honorable Stephen Stepanek
Former Chairman, Hew Hampshire House Ways & Means Committee
Co-chair, New Hampshire Center Right Coalition
Jack Boyle
Chairman, Northeast Ohio Center-Right Coalition
Jeff Kropf
Executive Director, Oregon Capitol Watch Foundation
Charlie Gerow
CEO, Quantum Communications (Pennsylvania)
Mike Stenhouse
CEO, Rhode Island Center for Freedom and Prosperity
Paul J. Gessing
President, Rio Grande Foundation (New Mexico)
Dr. Deane Waldman
Director, Center for Health Care Policy, Texas Public Policy Foundation
David Williams
President, Taxpayers Protection Alliance
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Treasury Secretary Mnuchin Urges Repeal of Sec. 1071 of Dodd-Frank
In February of this year President Trump issued Executive Order 13772 which ordered the Department of the Treasury to develop a report relating to U.S. financial regulations and how to make existing regulation consistent with a framework of Core Principles set out by the Administration. In doing so President Trump sought to make the financial system work for everyday Americans.
Secretary Steven Mnuchin directed the Treasury to make suggestions within the Report that would drive the Treasury to become more in line with the set of Core Principles. One major conclusion reached within the Report was that Section 1071 of the 2010 Dodd-Frank Act should be repealed.
Section 1071 was passed as part of the 2010 Dodd-Frank Act and while the rule still has yet to be implemented, the Consumer Financial Protection Bureau (CFPB) under Director Richard Cordray has evidenced that a rulemaking will happen soon.
Section 1071 requires the CFPB to issue regulations that force financial institutions to collect and maintain data on consumers who apply for small business loans. Financial institutions are then required to report that data to the CFPB. Some of the data that is required to be collected includes the purpose of the loan, the race, sex, or ethnicity of the business owners, and if the businesses are minority or women-owned.
This regulation, while well intended, allows the CFPB to reach further into the private sector and would impose a new regime of unnecessary and burdensome costs that would hurt not only small financial institutions, but also financial consumers.
Section 1071 would increase borrowing costs for businesses, especially small ones, as the costs of compliance is passed through. Even though the CFPB’s reasoning for the rule is to prevent discriminatory lending practices, such practices are already against the law pursuant to the Equal Credit Opportunity Act (ECOA), as well as a plethora of state fair lending laws.
The U.S. House this past June passed the Financial CHOICE Act (H.R. 10), which included provisions that would prevent this harmful rule from ever being enacted. However the Financial CHOICE Act faces an uphill battle in the Senate and CFPB Director Richard Cordray has made it clear that the rule is going to be implemented. Secretary Mnuchin’s suggestion to repeal this costly and duplicative rule is imperative for small businesses, their owners and the health of America’s small lenders. Lawmakers in Congress should follow suit.
Photo Credit: Stephen Jaffe
GOP Has Full Control of 26 States
West Virginia governor’s switch from D to R means GOP has full control of legislative and executive branch in 26 states; Dems have full control in just 6 states
West Virginia Gov. Jim Justice (D) announced his intention to join the Republican Party, switching the state to full Republican control. The GOP now has full control of the legislative and executive branch in 26 states.
Democrats only have full control of the legislative and executive branch in six states.
Population of GOP-controlled states: 164,139,104
Population of Dem-controlled states: 50,190,213
Click here for a full size version of the map below.
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