The Center for a Free Economy believes that getting fiscal policy right is the heart of getting government economic policies right. That means a pro-growth tax code which raises enough money for modest and well-designed government spending programs. Essential to fiscal policy is health care policy, which today dominates both tax and spending outlooks.
Recent News about Fiscal Policy:
This week, the Center for a Free Economy joined five other free market champions to demand that Congress not give a bailout to renewable energy industries like Big Solar. They made a deal to get rid of their tax breaks, and they should live with that deal. Joining CFE is Americans for Tax Reform, the National Taxpayers Union, Heritage Action for America, Americans for Prosperity, and Freedom Works. Click here to read the letter.
By Ryan Ellis An emerging axiom in politics is that the political party that is trying to take healthcare choices away from people loses, and the opposing party wins. The conservative House Republican Study Committee seems to have learned that lesson in their impressive new healthcare plan, particularly when it comes to the most important healthcare voters: seniors. The first order of business in any healthcare plan is to tell people that the latest big ideas from Washington won't threaten the healthcare they have and mostly like (the devil they know). The Republican Study Committee plan smartly begins with this defense and does not skip over it. House conservatives are committed to protecting seniors over age 65 (as well as the somewhat younger seniors transitioning from the workforce into retirement) from the destabilizing effects of “Medicare for All” socialized-medicine schemes. Seniors know that Medicare for All means much higher taxes [...]
By Grover Norquist It is wrong to tax inflation. Last week, President Trump agreed. He endorsed the idea of indexing capital gains so that no American would be taxed on the inflation gain on the sale of a house, land, a small business, stocks or assets of any kind. Trump said, “Many people like indexing, and it can be done very simply. It can be done directly by me.” One day later, Trump told a press gaggle that he’s “not looking to do indexing. . . . But if I wanted to do it, I believe I could.” The press gasped at the sudden shift from “I will” to “I won’t.” Greenland was ours for longer. But those who have worked to end the taxation of inflation in capital gains for almost 30 years noticed what did not change. The president stated and restated his view that his administration could define the [...]
By Ryan Ellis Congress has been sitting on the United States-Mexico-Canada Agreement, or USMCA, for months. A badly needed update to NAFTA, the USMCA is in danger of being talked to death by Democratic House Speaker Nancy Pelosi, despite the free trade agreement enjoying broad bipartisan support. Many fear that if USMCA is not passed soon, it will fall victim to presidential politics and autumnal congressional budgetary brinksmanship. It goes without saying that most conservatives support it, as they do virtually any free trade pact. But there’s another reason conservatives should get behind the USMCA: economic growth. According to the U.S. International Trade Commission, an independent federal agency that analyzes trade deals, the USMCA would create 176,000 new jobs and permanently increase the size of our economy by $68.2 billion, or 0.35%. That’s like giving $200 to every man, woman, and child in America, every year. The pro-growth effects of passing USMCA [...]
By Ryan Ellis Democratic presidential candidate and former Vice President Joe Biden this week released several years of income tax returns, probably hoping the story would be that he did so and President Trump has not. However, Richard Rubin from the Wall Street Journal found a much more interesting nugget: in 2017 and 2018, Joe Biden and his wife ran $13 million of profits through two subchapter-S corporations. In so doing, they avoided $500,000 in Social Security and Medicare taxes they would have paid if they instead reported the income as sole proprietors directly on their 1040 income tax returns. That’s because profits from an “S-corp” are subject to federal income tax, but not to the Social Security and Medicare tax. This is not true for sole proprietors, who are liable for both layers of tax in full. Biden, incidentally, is campaigning in favor of an across-the-board tax increase. If [...]
By Ryan Ellis Presidential front-runner Joe Biden has made a startling promise if he's elected president: repeal the entirety of the Tax Cuts and Jobs Act of 2017 and to increase taxes by $500 billion on top of that. What does he want to do with the money? Besides an $8,000 day care credit giveaway, it’s the usual socialist tax-and-spend menu of government-funded healthcare, the Green New Deal, and assorted other payoffs to the Left’s statist constituencies. When Biden and his several dozen competitors for the Democratic nomination for president hand-wave “repealing the Trump tax cuts,” they are actually talking about the largest middle-class tax hike in history. The median income family of four is enjoying an annual tax cut of over $2,000 thanks to the Tax Cuts and Jobs Act. What are the specific ways middle-class taxes would rise under Biden’s plan to hike taxes on these families? The [...]