White House Study: 20 Percent Corporate Tax Will Boost Middle Class Wages By At Least $4,000 Per Year

Share on Facebook
Tweet this Story
Pin this Image

Posted by Tom Hebert on Friday, October 20th, 2017, 5:11 PM PERMALINK

The 20 percent corporate tax rate presented by the Republican tax reform framework would increase average household income by at least $4,000 a year, according to a recent White House study. The study, released by the Council of Economic Advisers, makes a strong case for cutting the corporate tax rate as a way to turbocharge economic growth and boost wages for the middle class.

Our corporate tax rate is the highest in the developed world. At a staggering 35 percent, our corporate tax rate stifles innovation and renders U.S. firms unable to compete in the global market. This insanely high rate has stagnated American wage growth. During the Obama Administration, the real median wage in the U.S. only grew an average of six-tenths of a percent per year. As wages have stagnated for American workers, corporate profits have skyrocketed, topping out at 11 percent per year over the past eight years.

Studies show that there is a direct correlation between the statuary corporate tax rate and wage growth. Countries that have a lower corporate tax rate are more attractive for businesses to invest in. Between 2012 and 2016, the 10 countries in the OECD with the lowest corporate tax rates experienced dramatic wage growth. During that same interval, 10 countries with the highest corporate tax experienced wage stagnation, including the United States.

Cutting the corporate tax rate would alleviate wage stagnation in the long run. The bulk of the wage growth would occur after the corporate tax reform has fully taken hold. Conservative estimates have the average household income with a 20 percent corporate tax rate increasing by $4,000. Optimistic estimates have the average household income increasing by $9,000 in wage and salary income alone.

A 20 percent corporate tax rate would also allow companies to repatriate their U.S. corporate profits. In 2016, U.S. multinationals chose not to bring $299 billion of their foreign-earned income back to the United States because of the prohibitively high corporate tax rate. When a high corporate tax rate discourages U.S firms to repatriate profits, foreign-earned income cannot be used to benefit American workers. Indeed, when U.S. firms invest their capital overseas, the demand for U.S. workers decreases.

Cutting the corporate tax rate is a win-win for workers and businesses alike. U.S. businesses will be more willing to repatriate foreign-earned income, allowing them to invest their capital in American workers. While not usually thought of as beneficial to U.S. workers, cutting the corporate tax rate directly boosts middle class wages. Over the long run, a 20 percent corporate tax would boost middle class wages by at least $4,000 per year. The recent tax reform framework accomplishes this goal. 

Photo Credit: Eric Salard

Democrat Senator Schumer writes off $58,000 in taxes a year thanks to deduction he defends

Share on Facebook
Tweet this Story
Pin this Image

Posted by Satyajeet Marar on Thursday, October 19th, 2017, 3:19 PM PERMALINK

Democrats falsely claim that the Republican tax reform framework increases taxes on the middle class, namely because of the elimination of the state and local tax deduction. However, this deduction actually subsidizes upper income earners in high tax states, such as Senate Minority Leader Chuck Schumer (D-N.Y.) who took a $58,000 tax deduction because of SALT.

The democrats push to preserve this deduction is a blatant contradiction with their charge that the tax framework benefits the wealthy.

As noted in publicly available tax records, Senator Schumer deducted over $58,000 in state and local taxes in 2015. The size of this deduction is comparable to the U.S. median household income of $59,000 per year.

At the same time as he is benefiting from SALT deductions, Sen. Schumer is spreading blatant lies about the deduction in an attempt to tie it to middle class tax relief.  For example, Senator Schumer previously claimed that eliminating the deduction “socks it to the middle class,” despite the fact that the deduction is mostly used by upper income earners, a fact noted by the liberal Tax Policy Center.

Democrats even recently voted to preserve SALT in an amendment to the Fiscal Year 2018 budget resolution – a position that conflicts with their accusation that the tax reform framework benefits the wealthy.

These developments come just a month after Schumer called on fellow Democrats to “not go along with a tax plan that includes a tax cut for the folks who need it least.”

Schumer’s stance on the state and local tax deduction is also a sharp contrast to his support for the estate tax or ‘death tax’ – a policy which disproportionately hurts small family businesses and the workers they employ. Schumer’s fellow Democrat Senator Sanford Bishop of Georgia has echoed these concerns, describing the tax as “politically misguided, morally unjustified and downright un-American” because of its impact on small and medium-sized businesses in his rural electorate and across the nation.

These contradictions detract from the misleading ‘class warfare’ narrative championed by Schumer and Senate democrats. They reflect the role that partisan politics plays in undermining badly-needed tax reforms which will provide major relief to America’s middle class and will drive investment, economic growth, job creation and prosperity. 

Photo Credit:

More from Americans for Tax Reform

Lawmakers Should Repeal IPAB’s Price Controls with CHIP Reauthorization

Posted by Alexander Hendrie on Wednesday, October 18th, 2017, 2:00 PM PERMALINK

While efforts to repeal Obamacare and reform the nation’s healthcare system have stalled, there are still opportunities to enact healthcare reform that undoes the damage caused by Obamacare. Congress is likely to soon take up reauthorization of the Children’s Health Insurance Program (CHIP). They should use this opportunity to also repeal the Independent Payment Advisory Board (IPAB). Repealing IPAB is bipartisan and may be the only chance for the Republican Congress to repeal parts of Obamacare.

IPAB was created seven years ago when Obamacare was signed into law. The basic role of IPAB is to lower costs through the implementation of blunt price controls that ration the existing Medicare system. This indiscriminate tool leaves the U.S. healthcare system with the same price controls attempted (and failed) in socialized medicine systems seen throughout the world.

In addition to being a blunt instrument that drives bad policy, IPAB also undermines the constitutionally granted authority Congress has over the power of the purse. IPAB bureaucrats are free to institute price controls they see fit without approval from Congress. As a result, this board has immense power over health outcomes and the livelihood of patients and doctors.

Given the board is problematic both politically and from a policy standpoint, it should not be surprising that there is broad consensus to repeal IPAB from numerous stakeholders.

The alternative – allowing the board to operate as planned – will result in indiscriminate cuts to Medicare that will undermine healthcare choice and access of 55 million Americans.

While there are clear arguments for repealing this panel, lawmakers should be sure to ignore poor arguments in favor of keeping IPAB. For example, some argue that IPAB repeal needs to be offset. However, this logic is flawed – under current law CBO has already assumed that IPAB will save money over the ten-year window even though the price controls have not yet been implemented. The assumption that preventing these price controls “costs” the government money is backwards thinking logic that is biased toward the status quo of Obamacare.

Ultimately, while previous stages of healthcare reform have failed Congress can still achieve repeal some of Obamacare by repealing IPAB and saving Medicare beneficiaries from indiscriminate price controls. When Congress takes up legislation reauthorizing CHIP, they should also be prepared to take up bipartisan legislation repealing IPAB.


Photo Credit:

More from Americans for Tax Reform

Don't Screw Up Tax Reform, or the Economy Won't Grow in Time for the Midterms

Share on Facebook
Tweet this Story
Pin this Image

Posted by Grover Norquist on Tuesday, October 17th, 2017, 3:49 PM PERMALINK

Editor’s Note: This article originally appeared in the Washington Examiner.

It is hard to screw up a tax cut.

But we've done it before. The Reagan tax cut of 1981 was supposed to be a 33 percent across-the-board tax cut. The Democratic Party held a majority in the House, so that rate reduction was reduced to 25 percent. Not good, but understandable. A compromise. But the real damage was that the 25 percent cut was delayed. There was a 5 percent rate reduction in 1981, a 10 percent rate reduction in 1982, and then a final 10 percent rate reduction in 1983.

Why did this matter? The economic growth driven by a 25 percent rate reduction began in Jan. 1983. Four million jobs were created that year, 1 million in Oct. 1983 alone. In 1984, Reagan won a smashing victory in 49 states – missing only Walter Mondale's home state of Minnesota.


But there was an election in 1982, and the GOP got clobbered. Why?

Because by delaying the full tax cut, the economy was not growing in 1982 – oddly enough the 1982 election was held in November 1982.

Now, we have an election scheduled for Nov. 2018. There is careless talk among some staffers drafting the tax reform bill in the House that they might "phase in" (read: delay) the full reduction of the burdensome corporate tax rate from 35 percent to 20 percent.

Tax cuts taking effect immediately would supercharge the economy. If businesses know that by delaying recognizing earnings for a year or two (or three) they will face lower tax rates, they will react accordingly and delay new investment, jobs, and earnings.

Sure, strong growth three years from now would be nice. But strong growth in early 2018 so that even MSNBC "reporters" will have to mention new and additional jobs before the Nov. 2018 election would be more than nice.

If you cannot fit all the tax cuts you want into 10 years, then frontload them. That is what Republicans announced they will do with full and immediate expensing. It is to last five years, but start immediately so that we get the strong growth before the 2018, 2020, and 2022 elections. By then, it will be obvious to everyone – except experts at the Joint Tax Committee – that expensing should be made permanent. That is what happened with the research and development tax credit.

Frontload tax cuts. Speed up recovery and growth. Win the next election. Cut taxes.


Photo Credit: Gage Skidmore

More from Americans for Tax Reform

Trump Ends Illegal CSR Payments In Victory For Constitution

Share on Facebook
Tweet this Story
Pin this Image

Posted by Tom Hebert on Tuesday, October 17th, 2017, 3:12 PM PERMALINK

President Trump has directed the Department of Health and Human Services to end the illegal and unconstitutional “Cost-Sharing Reduction” (CSR) payments to insurance companies under Obamacare. By restoring the power of the purse to Congress (where it belongs), Trump’s decision upholds the rule of law and our constitutional system of checks and balances.

Congress never appropriated the CSR payments, as we’ve written. A 2016 report from the House Ways and Means Committee and the House Energy and Commerce Committee revealed that the Obama Administration initially submitted a CSR appropriations request for Fiscal Year 2014, but later withdrew it and began making payments illegally. The Obama Administration then begun illegally shifting funds from a separate appropriation to make the payments. Even Obama’s IRS, the same scandal-tarnished crew that targeted conservative groups applying for tax-exempt status, expressed concern that the CSR payments were illegal.

In 2016, a federal court ruled that the CSR payments were illegal. The payments are clearly an unlawful, unconstitutional bailout for insurance companies, and were obviously made without a Congressional appropriation to keep Obamacare on life support.

The CSR payments were made to insurance companies to reduce the cost of health insurance for families struggling with Obamacare’s enormously high premiums. These illegal CSR payments clearly failed at keeping premiums low, since Obamacare has raised premiums by approximately 60 percent since it became law.

Obamacare has saddled lower-income Americans with more than just high premiums. Obamacare also contains $1 trillion in new or higher taxes. If Congress fails to act, the Health Insurance Tax (HIT) will hit Americans on the first of next year. The health insurance tax is a tax on health insurance premiums. According to the American Action Forum, the HIT alone will cause premiums to rise over $5,000 over the next decade, and families making less than $50,000 will shoulder half the tax burden. 

Additionally, the CBO estimates that the individual mandate tax has cost American taxpayers over $4 billion a year. The Obamacare Chronic Care Tax, an egregious income tax hike on middle class families making an average of $53,000 a year, is projected to cost taxpayers $35 billion over 10 years.

Struggling families everywhere are dealing with skyrocketing premiums and less choice in health care plans. Congress should act swiftly to end Obamacare, and replace it with a patient-driven, market-based system that will expand choice and encourage innovation. By ending the illegal CSR payments, Trump has affirmed his commitment to dismantling Obamacare and restoring the rule of law.

Photo Credit: Gage Skidmore

More from Americans for Tax Reform

KEY VOTE: ATR Urges Passage of Senate FY ‘18 Budget Resolution

Posted by Alexander Hendrie on Tuesday, October 17th, 2017, 10:00 AM PERMALINK

The budget resolution is the vehicle to pass tax reform. Support for the budget equals support for tax reform

ATR urges a YES vote on the S.Con.Res. 25 as a pro-taxpayer vote 
“The Republican tax reform plan will turbo-charge the economy, create millions of new jobs and make America the best place in the world to invest, build and create,” said Grover Norquist, president of Americans for Tax Reform. "The first step toward passing this tax reform plan is for congress to pass a budget resolution that unlocks reform." 

[ATR letter of support for S.Con.Res.25 can be found here]

It is imperative that the Trump tax reform plan is signed into law in 2017. The first step toward achieving this goal must be passage of a budget resolution. 

Without a budget resolution, Congress is unable to move forward with tax reform as almost every Senate Democrat has already ruled out supporting Trump’s tax reform plan. The only path forward is through budget reconciliation which avoids a Senate filibuster before moving to a regular order process that involves Committees of jurisdiction drafting legislative text. 

Support for this budget resolution should be viewed as support for the Trump tax reform plan. Opposition to the budget resolution equals opposition to tax reform.

All Senators should vote “YES” on the S.Con.Res.25, the FY ‘18 budget resolution.

The Trump Tax Reform Framework proposes tax cuts and simplification for individuals and businesses: 

-Consolidates the existing seven tax brackets into three (12%, 25%, 35%). 
-Doubles the standard deduction (The first $12,000 for individuals and $24,000 for families will not be taxed). 
-Expands the child tax credit so that families have more take home pay. 
-Simplifies the code by repealing unnecessary deductions and credits but preserves home mortgage and charitable deductions. 
-Repeals the death tax and AMT. 
-Reduces taxes on all businesses by 42 percent – The corporate tax rate is reduced to 20 percent, and the tax rate on pass-through entities is reduced to 25 percent. 
-Enacts 100 percent, full business expensing for at least five years to stimulate new investment in the economy. 
-Replaces the outdated worldwide system of taxation with a system of territoriality so that American businesses operating overseas can compete. 
-Allows trillions of dollars’ worth of after-tax income to come back to the U.S. to be reinvested in the economy after a one-time repatriation rate. 



Photo Credit:

More from Americans for Tax Reform

Ohio Issue 2 Is A Bad Deal for Taxpayers

Share on Facebook
Tweet this Story
Pin this Image

Posted by Margaret Mire on Tuesday, October 17th, 2017, 9:37 AM PERMALINK

As November 7th – Election Day – gets closer, more and more “Yes on Issue 2” mailers and commercials are circulating Ohio.

Of the many false claims Issue 2 supporters continue to make, one of the most egregious is that Issue 2 – which would tie the rate the state and state agencies pay for prescription medications to the rate paid by the Veterans Administration – would save Ohio taxpayers $400 million a year.

While forcefully lowering the price the state can pay for prescription medication may sound like it would save tax dollars, Ohioans should note that such claims ignore key facts, and that Issue 2 is more likely to have the opposite effect.

Indeed, those who claim Issue 2 would save the state money ridiculously assume Ohio does not currently receive any considerable prescription drug discounts when, in fact, it does. Competition in the industry incentivizes biopharmaceutical manufacturers to voluntarily offer the state lower prices for medication. However, should Issue 2 be implemented, experts predict that many of the low-rate agreements Ohio has in place would be destroyed, potentially running up Ohio’s prescription costs by tens of millions each year.

In addition, Ohio taxpayers should keep in mind that the administrative costs of Issue 2 are also likely to be much, much higher than Issue 2 proponents are anticipating. At this time, there are no plans as to how Issue 2 would be put in place, meaning the taxpayers of Ohio will have to foot the bill for consultants, lawyers, and rulemakers that will be hired for a very long time to help navigate the implementation process (on top of basic overhead costs).

Adding to this tax dollar snowball is Issue’s 2 Section G. Section G guarantees the hardworking taxpayers of Ohio will cover any and all costs to defend Issue 2, should (when) it face legal challenges and applies whether or not Issue 2 stands up in court. This dangerous clause, which sets a precedent for taxpayer funded trial lawyers, should be terrifying to all Ohioans, including those who misguidedly favor the rest of this destructive measure.

All facts considered, rather than saving money, Issue 2 is more likely to result in lawmakers taking funding from other programs in the state budget and possibly asking taxpayers to fork over even more of their paychecks. Issue 2 is a terrible deal for taxpayers and Ohioans would benefit greatly from rejecting it.  

Photo Credit: Graem Dawes

More from Americans for Tax Reform

Middle Class Families Are The Real Winners In The GOP Tax Plan

Share on Facebook
Tweet this Story
Pin this Image

Posted by Alex Hendrie on Monday, October 16th, 2017, 12:00 PM PERMALINK

This article originally appeared in TheHill.com

The unified Republican tax reform framework released last month cuts taxes and increases take-home pay for the middle class while simplifying the code for millions of American families.

First, the framework consolidates the existing seven tax brackets into three — 12 percent, 25 percent, and 35 percent, giving rate reduction to all.

In addition, the plan doubles the standard deduction to $24,000 for a family and $12,000 for individuals, meaning this amount is taxed at zero percent, a significant tax reduction for millions of Americans.

This reform represents drastic rate reduction for the 105 million Americans across the country who took the standard deduction in 2015, according to IRS data. More than seven million taxpayers in Florida, nine million taxpayers in Texas, and three million in Michigan and North Carolina benefit from this tax reduction. These numbers also understate the number of taxpayers who will benefit as the increased standard deduction becomes more attractive for taxpayers.

This is not the only reform in the framework that helps American families. The plan calls for expanding the child tax credit, benefiting more than 22 million families across the country that used this credit in 2015, including more than 500,000 families in New Jersey, 800,000 families in Ohio, and 2.7 million families in California.

Similarly, the repeal of the AMT gives tax relief to almost 4.5 million American families that paid the tax in 2015. More than half a million taxpayers in New York, 250,000 taxpayers in Texas and 166,000 taxpayers in Pennsylvania are hit by the AMT.

Clearly, there are millions of Americans that benefit from the Republican tax reform framework, even before considering other changes in the framework.

Despite this, the plan has been attacked by some who claim the plan doesn’t benefit American families. For instance, a report released by the liberal Tax Policy Center claims that middle-class families will see little if any tax relief, and many will face a tax increase.

However, this analysis fails to account for several factors. First, it assumes many specific details such as the income threshold for the consolidated tax brackets and the size of the child tax credit. For instance, the TPC report assumes a child tax credit of just $1,500, even though two advocates of the child tax credit, first daughter Ivanka Trump and Senator Marco Rubio, have proposed a child tax credit of $2,500.

Even using the biased assumptions of the TPC, the framework is a significant tax reduction for families, as noted by Ryan Ellis writing for Forbes. After modeling three median income American families, Ellis found that each one came out better off from the GOP framework than they currently are.

The TPC study also fails to use any kind of dynamic scoring in its analysis. In large part, the tax reform framework is a jobs bill and many of the reforms to business taxes, like lower competitive rates for businesses and implementation of 100 percent expensing, are aimed at creating new or better jobs for Americans and increasing take-home pay for families through stronger economic growth.

Without dynamic scoring, an analysis of the GOP tax framework is incomplete because it does not account for changes in behavior that result from tax changes. Dynamic scoring has increasingly become the norm as a more accurate way to measure tax changes. While it is far from perfect, dynamic scoring can properly account for changes, like a reduction of the corporate tax.

Many studies have concluded that around 75 percent (and possibly even more) of the corporate tax is borne by labor, meaning a reduction in this tax as the framework proposes, also benefits American workers.

In fact an analysis by the Tax Foundation estimates that going to a 20 percent corporate rate creates the equivalent of 641,000 jobs and boosts income by three percent, or almost $1,700 per family based on 2015 median income. Failing to use dynamic scoring, as the TPC study does, means that the true benefits of the Republican framework are obscured. Any true analysis of the tax plan’s effect on individuals needs to include the benefits business changes have to the economy.

By any measure, the middle class is the winner of this tax reform plan. Under the unified framework released last month, American families will see tax cuts, tax simplification, new or better jobs, and more take-home pay.


Alex Hendrie is the director of tax policy at Americans for Tax Reform, a nonprofit group that works to support limited government.

Photo Credit: Greg Nash

More from Americans for Tax Reform

Trump Takes Key Step Towards Fixing Obamacare

Share on Facebook
Tweet this Story
Pin this Image

Posted by Satyajeet Marar on Friday, October 13th, 2017, 5:08 PM PERMALINK

An Executive Order signed by President Trump aims to expand options and lower costs for Americans by potentially allowing citizens to purchase insurance across state lines. The move is a step towards reforming America’s costly and unsustainable Obamacare system, a system that has cost ordinary Americans and American businesses billions in unfair and oppressive taxes while delivering subpar services.

Under the new order, the Secretary of Labor is directed to consider expanded access to Association Healthcare Plans (AHPs).  Expanding AHPs potentially allowing businesses to band together across state lines to offer their employees better coverage at a cheaper price in a larger, more competitive market. This long-overdue measure is welcome relief for small businesses which have suffered since Obamacare became law in 2010, when over 59% of companies with 25-49 workers offered their workers healthcare coverage. That figure has since dropped drastically by 14% with the number of companies with 1-24 workers offering healthcare coverage similarly dropping by 12% to just 32% today.

Short-term limited duration insurance, or STLDI, will also expand under the order. These plans are not subject to costly Obamacare regulations and are typically much cheaper – just a third of the cost of the cheapest Obamacare plan with broad provider networks and coverage limits. An Obama administration rule limits these plans to a 3 month duration. Repealing this rule will allow millions of Americans to access these plans, delivering immense utility and benefits especially for people between jobs, people in rural areas where coverage networks are limited, people who missed Obamacare’s open enrollment period and those living in thousands of US counties where only a single insurer offers exchange plans. This is a timely step given that by 2018, 1,500 counties of half of all US counties are projected to have only a single insurer offering exchange plans – denying over 2.6 million Americans a choice of insurer.

Finally, the order will aims to expand Healthcare Reimbursement Arrangements. HRAs are non-taxed, employer-funded accounts that reimburse workers for healthcare expenses including co-payments and deductibles. This will put power and control in the hands of millions of Americans who can seek flexible options tailored to their individual healthcare needs. HRAs were once popular among small businesses prior to draconian Obama-era regulations which restricted their use for insurance premiums.

The order is a welcome step against oppressive and costly Obamacare policy and taxes. Average premiums for individual health insurance plans have doubled between 2013 and 2017 and every state in the country using healthcare.gov has seen premiums rise, taking money out of the pockets of ordinary Americans.

Americans also continue to suffer from a swathe of shameless and corrosive Obamacare taxes including Health Savings Account taxes, individual mandate tax, high medical bills tax, health plan tax and even a tax on wheelchairs. The Health Insurance tax hits companies and is invariably passed on to consumers and firms, set to strip $130 billion over 10 years. Families seeking to manage their children’s healthcare needs through a pre-tax Flexible Savings Account face a tax if they exceed the low cap of $2,500. Other taxes are even more absurd – the tanning salon tax singles out these small businesses and has led to the closure of 10,000 tanning salons. A majority of tanning salons are owned by female entrepreneurs. Repealing these taxes will take a heavy and unfair burden off the shoulders of middle-class Americans and the firms who employ them.  

In return for paying these taxes, we’ve received a substandard healthcare system which affords citizens few options and has seen millions of Americans departing Obamacare exchanges whilst copping a hefty legal penalty instead. Over 6.7 million people left Obamacare in 2015 alone. Current exchange enrollment is 60% below what the Congressional Budget Office predicted when the law took effect and 500,000 fewer Americans have enrolled in an Obamacare this year compared to 2016. In a particularly unconscionable state of affairs, over 37% of the households penalized for leaving Obamacare in 2015 made less than $25,000 a year and a whopping 79%  made less than $50,000.

The evidence is clear that oppressive Obamacare policy and the taxes that fund it are hurting the poor, middle-class and those who deserve it the least. Though a welcome step, the Executive Order does not direct the agencies to adopt any particular rules but asks the agencies to consider expanding access to AHPs, STLDI, and HRAs to the extent consistent with law. A full repeal and replacement is the only solution for an unfair and broken system and it is time for congress and the senate to act.


Photo Credit:

More from Americans for Tax Reform

Friday the 13th Could be the Scariest Day of the Year for Connecticut Taxpayers

Share on Facebook
Tweet this Story
Pin this Image

Posted by Americans for Tax Reform on Thursday, October 12th, 2017, 3:26 PM PERMALINK

After being hit with the two largest tax increases in state history, this pre-Halloween Friday the 13th could bring even more bad luck and horrific tax hikes for Nutmeg State taxpayers.

Over 100 days into the new fiscal year, Gov. Malloy and state legislators are still struggling to reach a budget agreement. The sticking point is whether the new budget will be balanced on the backs of Connecticut taxpayers once again. Even after admitting earlier this year that his previous tax increases have not worked, Malloy continues to insist that further tax hikes be included in the new budget. 

Last month, lawmakers in Hartford passed a bipartisan budget proposal that did not include higher taxes and sent it to Gov. Malloy’s desk, where it was met with a veto. Unfortunately for Connecticut taxpayers, who already face the second highest state and local tax burden in the nation, Malloy is insisting on a new spending plan that raises taxes, even though legislators from both parties have shown the budget can be balanced without another round of job-killing tax hikes.

Connecticut lawmakers are now back at the negotiating table, working on a new budget deal that they hope to have ready by Friday, October 13th. As negotiations continue this week, the new version of the bipartisan budget could potentially include some of the tax hikes that Gov. Malloy has been pushing for all year, the most notable of which include higher taxes on prescription drugs, cellphone bills, hospitals, hotel rooms, vacation homes, and tobacco. Malloy has also proposed raising the state sales tax to 6.5% from 6.35% and the tax on restaurant meals to 7%.  

In addition to the two largest tax hikes in state history, Connecticut residents have also been hit with 20 federal Obamacare tax increases in recent years. The last thing they need is to have lawmakers in Hartford pile on with another round of job-crushing tax increases. Connecticut already has a tax climate that is hostile to business and the tax increases being pushed by Malloy will only make matters worse, likely exacerbating the exodus of individuals, families, and employers out of state. Americans for Tax Reform urges Connecticut legislators to stand up to Gov. Malloy (D) and thwart his incessant pursuit of more economy-depressing tax hikes.  

Photo Credit: CT Senate Democrats