The Center for a Free Economy believes that the best tax system is one which is pro-growth and pro-family. The tax base should be focused on consumption, not investment. Tax rates should be low. The tax code should not pick winners and losers. Taxes on capital should not be higher than taxes on labor, as is unfortunately the case today. A pro-family tax policy is not opposed to a pro-growth tax policy.
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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 [...]
Dear Members of Congress, We oppose any carbon tax. A carbon tax raises the cost of heating your home in the winter and cooling your home in the summer. It raises the cost of filling your car. A carbon tax increases the cost of everything Americans buy and lowers Americans’ effective take home pay. A carbon tax increases the power, cost, and intrusiveness of the government in our lives. Sincerely, Grover Norquist President, Americans for Tax Reform James L. Martin, Founder/Chairman Saulius “Saul” Anuzis, President 60 Plus Association John Droz Jr. Physician and Founder, Alliance for Wise Energy Decisions (AWED) Marty Connors Chair, Alabama Center Right Coalition Mead Treadwell Former Lt. Governor, State of Alaska Chair, Alaska Center-Right Meeting Dick Patten President, American Business Defense Council Phil Kerpen President, American Commitment Thomas Pyle President, American Energy Alliance Brent Wm. Gardner Chief Government Affairs Officer, Americans for Prosperity Lisa B. Nelson [...]
President Trump and congressional Democrats last month pledged to commit $2 trillion in infrastructure projects over the next decade. The slight problem they face? No one has any idea how to pay for it. Neither party wants to run up more debt. Republicans are opposed to higher taxes. Democrats are opposed to spending cuts. What to do One idea is for the Treasury Department to remove inflation from the capital gains tax, something legal scholars believe could be done by regulation. Known as “capital gains indexing,” the idea is simple: Instead of a capital gain being defined as what an asset is sold for minus what it is bought for, it could instead be defined as what an asset is sold for minus what it is bought for plus inflation since purchase. Take, for example, a home sold for $500,000 and purchased for $100,000. Under the current tax rules, the capital gain [...]
By Ryan Ellis It was reported today that Larry Kudlow will be named the new director of the National Economic Council at the White House. A longtime veteran of the supply side tax movement, Kudlow is expected to steer the West Wing and President Trump in a solidly pro-growth direction. There's one project that Kudlow needs to get to work on right away: indexing the basis of capital gains to inflation. This is a cause which has been close to his heart for many years. Just last August, Kudlow wrote an op-ed for CNBC urging President Trump to do this by executive order. In that op-ed he wrote: Former Treasury economist Gary Robbins estimates that indexing capital gains for inflation [in 2017] would, by 2025, create an additional 400,000 jobs, grow the U.S. capital stock by $1.1 trillion and boost GDP by roughly $500 billion. That all translates to an additional $3,600 for the average household...Capital [...]