Category Archives: Jobs

Coalition Seeks to Undo Crony Insurance Tax-Loophole

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Conservative Coalition Supports Senate Effort to Close “Bermuda Tax Triangle” Loophole and Protect American Jobs

Washington D.C. – On behalf of the following free-market groups and organizations, together representing Americans from coast to coast, we urge you to support the Senate’s Anti-Base Erosion Provision, which removes an unfair advantage favoring foreign insurers over U.S.-headquartered companies. Under current U.S. tax law, foreign based insurers are able to transfer profits to affiliates in offshore tax-havens tax free, but does not afford equal treatment to U.S. based insurers.

As a candidate for President, Donald Trump touched a nerve with voters by pointing out that our tax code is unfair to American companies and employees. One such unfair provision is the insurance tax-haven loophole, which has discriminated against the American insurance industry for over three decades. The proposed Senate tax bill removes the incentive that foreign companies currently exploit to shift thousands of American jobs overseas and avoid paying U.S. taxes. The federal government should never reward or encourage companies to make decisions at the expense of U.S. taxpayers and jobs.

The Senate tax bill includes strong anti-base erosion measures that will go a long way in stopping foreign companies from gaming the U.S. tax code. It is imperative that Congress resist any desperate attempts by foreign insurers to weaken the language thereby preserving their loophole.

Foreign insurance companies are using misleading talking points to prevent a level playing field for U.S. companies. While their inaccurate claims alleging reduced capital and increased prices confuse the public discussion, the bottom-line is they want to avoid paying U.S. taxes and continue gaming the system. The Senate bill would merely require foreign companies to pay U.S. taxes on their U.S. generated insurance business instead of allowing them to use offshore affiliates to strip earnings.

Preserving a loophole for foreign insurers undermines the very foundation of the tax reform effort being considered on Capitol Hill.

At a time when companies are inverting, and the American people are demanding action against corporate tax avoidance, it is long overdue that Congress close the loophole. We urge Congress to support the provision in the Senate bill.

Read the full letter HERE: Congress Must Undo Crony Insurance Tax-Loophole_Coalition Letter

COALITION Seeks to Reform the federal Renewable Fuel Standard (RFS)

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Washington, D.C. – A broad coalition of free-market and center-right organizations are respectfully requesting that Scott Pruitt, Administrator of the Environmental Protection Agency (EPA), reform the Renewable Fuel Standard (RFS) mandate. 

The previous Administration’s corporatist policies ushered in an unprecedented age of hyper-lobbying that promoted partial and partisan interests—saving Wall Street bankers, a failed stimulus package, an auto bailout for union control, the Obamacare fiasco, green energy boondoggles. President Trump promised to grow the economy by doing away with Obama-era cronyism.

Reforming the badly broken RFS system and will show that the President is serious about putting America back to work.

Read the Coalition letter here: COALITION Seeks to Reform the federal Renewable Fuel Standard

Philly Tax is a Job Killer

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Beverage Tax Sweetens Philly Coffers, Sours Retailers USA Today, 2/23/207

“[Alex] Baloga said retailers immediately experienced a ‘massive’ impact. Beverage sales are down sharply as many city residents cross into suburban counties to buy soda, he said. That has lead to changed shopping habits — some customers end up doing all their shopping outside the city, he said. Distributors and supermarkets in Philadelphia have already started announcing layoffs, he added.

‘The important point is that this is having a dramatic, negative impact on retailers, businesses and customers in the city,’ he said. ‘The pain it is inflicting is very real on average, real people.’

Danny Grace, secretary-treasurer of Teamsters Local 830, said about 1,700 of his members are drivers, salesmen and account reps for the soda industry. He said the companies are reporting sales declines of 30% to 40%.

‘Many of our members are seeing a reduction of 50% or more in their take-home pay,” he said. “And I don’t see the business coming back.’

Jeff Brown, CEO of Brown’s Super Stores, which manages several ShopRite stores in the city, told Philly.com this week that beverage sales are down 50% and overall sales are down 15%. He said he expects to shed 300 jobs in coming months.

‘People didn’t change what they drink,’ Brown told the news site. ‘They changed where they’re buying it.’”

Mayor Kenney’s Grocery Tax increased the price of beverages in Philadelphia so people are buying less beverages in Philadelphia. People really do respond to incentives. It’s that simple.

Update: Philly’s Mayor Kenney Pushes Regressive Tax on False Promise of Expanded Pre-K

On June 8, 2016 in Philadelphia, lawmakers took a crucial vote on an important issue for taxpayers, families, and consumers. The plan from Mayor Jim Kenney (D-Philadelphia) would have imposed a 3 cents-per-ounce tax on more than 1,000 beverages. However, at the eleventh-hour the Mayor dropped a bombshell: a tax at 1.5 cents-per-ounce but spread out to both sugary and diet beverages, and the tax revenue would go toward the city’s fund balance. The Mayor promised that the new tax would be dedicated to initiatives like expanded pre-K. Instead, he pushed through a massive, regressive grocery tax on a false promise.

Mayor Kenney’s expanded grocery tax is excessive and it will drive down wages and kill jobs. His tax targets the poor and robs resources from families living paycheck to paycheck.

Capitol Allies is a staunch opponent of arbitrary, regressive taxation.

Before the City Council took the vote, in an effort led by Capitol Allies, a broad coalition of taxpayer and free market groups sent this coalition letter to the Philadelphia City Council asking them to reject Mayor Kenney’s grocery tax.

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No Philly Grocery Tax

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More than a dozen national pro-growth, pro-job, free-market advocates have released a coalition letter asking the Philadelphia City Council to oppose Mayor Jim Kenney’s plan to impose a 3 cents-per-ounce tax on more than 1,000 beverages—the Philly Grocery Tax. The proposed Philadelphia-only tax will—as former Governor Ed Rendell made clear—unfairly hurt the city’s poorest residents while its wealthiest citizens will be able to avoid the tax altogether.

Media contact: Jerry Rogers 202.302.9783 / Jerry@capallies.com

Jerry Rogers is the founder of Capitol Allies, an independent, nonpartisan effort that promotes free enterprise, and he’s the co-host of  The LangerCast on the RELM Network.

 

The Langer Cast! Ebola, Unemployment, Lois Lerner, and more

 

This week, Andrew and I are live from the studios of One America News! A special message goes out to one of the LangerCast’s most-dedicated fans. Andrew talks about slugging, and the dumbest things he’s ever read. We talk about the mishandling of the global Ebola crisis, and I expose the myths in the latest US unemployment numbers. Then we talk about why we are of two minds regarding the video ambush of Lois Lerner, and how to think about politics and policy as if we’re playing in the post-season.

Carter Redux

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Jimmy Carter Redux?

By Jerry Rogers

In his speech at Northwestern University last week, the president touted—as good news—the unemployment rate. He said that “by every economic measure, we are better off now than we were when I took office.”

By every economic measure, we are better off?

We know from the September Jobs Report that the unemployment rate has fallen to 5.9 percent. However, if you’re like most American workers, your earnings have declined or remained flat. Household income—for most Americans—is lower today than it was five years ago when the great recession officially ended.

Why?

Behind the rosy headlines celebrating the “rebounding” economy and the “reassuring” news of falling unemployment is the gloomy truth that the labor-force participation rate remains shockingly low—1970s, Jimmy Carter low. Earnings are stagnant because we have a surplus of workers sitting on the sidelines.

As I said here yesterday, the unemployment rate dropped because more people simply gave up looking for jobs. President Obama is failing as dramatically as did Jimmy Carter. The last time the labor force participation rate fell to 62.7 percent (today’s level) was during the Carter malaise in 1978. Let’s leave the late-70s behind us, and build an economy for the 21st Century.

Policy-makers need to pass meaningful market-based reforms that will liberate entrepreneurs from taxes and costly, job-killing regulations. The health of America’s economy depends on start-ups and new businesses being able to obtain capital, expand research, and grow into public companies that can hire people while bringing new products to market.

We can do better, and I’ll be exploring how at the CapAllies Post as we lead up to the midterm elections. Stay tuned.

Jerry Rogers is vice president at the Institute for Liberty and the founder of Capitol Allies, an independent, nonpartisan effort that promotes entrepreneurship, economic growth, and free enterprise