Email Insights: Many regulations have been waived to help fight COVID-19
Several regulations were suspended to lessen the impact of the coronavirus pandemic.
Email Insights: Americans for Tax Reform write legislators to oppose franchise bill
The national group Americans for Tax Reform has weighed in to oppose the “Protect Alabama Small Businesses Act.” This bill, House Bill 352 sponsored by Representative Connie Rowe and Senate Bill 129 by Senator Chris Elliott, passed the senate last week and headed to the House committee on State Government. The letter follows more than 80 franchise brands who have also weighed in to oppose the pending legislation, which they say would cost Alabama around $1 billion in lost economic output. That group has set up a website www.protectalabamabusiness.org to counter what they call the myths surrounding the legislation. Read the letter in full below: To: Members of the Alabama House of Representatives From: Americans for Tax Reform Re: House Bill 352 and Senate Bill 129 (as substituted) Dear Representative, On behalf of Americans for Tax Reform and our supporters across Alabama, I urge you to vote NO on HB 352 and SB 129 (as substituted). If you talk to business owners today, many will tell you that the onerous and costly regulations are just as much, if not more of a problem than burdensome taxes. Yet HB 352 and SB 129 would make that problem worse by raising the regulatory cost of doing business in Alabama. Furthermore, this bill is a non-solution in search of a problem. These companion bills seek to have Alabama state government inappropriately meddle with private contract negotiations between franchisors and franchisees. According to industry estimates, passage of HB 352 and SB 129 would diminish Alabama’s economic output by $1 billion over the next decade. Enactment of HB 352 or SB 129 could shut off a proven path for Alabama residents to become small business owners, to the detriment of consumers and the economy as a whole. Passage of these bills would send the wrong message about Alabama – that it is hostile to investment, job creation, and commerce – at a time when it is most disadvantageous to send such a message. A Particularly Important Time to Reduce State Tax & Regulatory Burdens It’s no coincidence that the U.S. has reclaimed the number one spot on the World Economic Forum’s Global Competitiveness Index following the enactment of federal tax reform that significantly cut federal income tax rates, for both individuals and businesses. It’s clear that many investors, CEOs, and site selectors are bullish on the U.S. relative to other potential destinations for their capital. Yet once business owners or investors make the decision to bring new capital to or create jobs in the U.S., either by relocating or expanding operations stateside, they then have 50 choices before them when it comes to which state to choose. That’s why it is more important than ever for state legislators in Alabama to do everything they can to make the state a more attractive place to invest, do business, live, and raise a family. Imposing costly and unnecessary regulations, as HB 352 and SB 129 would do, would work at cross-purposes with that goal and indicate that Alabama is hostile to business. For these reasons, I urge you to vote NO on HB 352 and SB 129 (as substituted). Americans for Tax Reform will be educating your constituents, who are counting on you to protect their pocketbooks, as to how you and your colleagues vote on this and other important issues. I wish you the best of luck and I thank you for your public service. If you have any questions or if ATR can be of assistance, feel free to contact me or Patrick Gleason, ATR’s vice president of state affairs, at pgleason@atr.org or 202-785-0266. Sincerely, Grover G. Norquist PresidentAmericans for Tax Reform
Americans for Tax Reform targets Alabama’s gas tax increase
One of the nation’s most aggressive anti-tax groups has taken aim at Gov. Kay Ivey‘s proposed $300 million gas tax increase. Patrick Gleason, vice president of Americans for Tax Reform (ATR), called on state lawmakers this week to reject a stand-alone tax increase in favor of pairing it with “pro-growth” tax cuts elsewhere in the budget. “If it’s a stand-alone gas tax, we’ll be urging them to oppose it,” Gleason recently said on the Present Crisis Podcast, hosted by conservative Alabama writer J. Pepper Bryars. ATR has a history of fighting against tax increase. According to its website, it has launched major advertising campaigns against tax increases in the past. Gleason explained on the podcast it would be better for Alabama to first reform how its gas taxes are already spent, ending the practice of having them fund things that aren’t associated with transportation. Then, he said, pair a gas tax increase with reductions in taxes that stifle economic growth, like business taxes and personal income taxes, so that the overall tax burden doesn’t increase. “You could see a package taking shape that would not only be something that Americans for Tax Reform (would) not oppose, but could be something that we supported,” Gleason explained. Gleason looks at Alabama as an outlier right now — a a Republican governor following the footsteps of Democratic governors in states like Illinois, Connecticut, and California introducing a gas tax hike. “One of the exceptions to that is Alabama where we’re seeing a Republican governor push for a gas tax increase,” Gleason said. “That’s really made the state an outlier.” Gleason believes being the only state raising taxes in the southeast could harm the state’s efforts to attract businesses. “You’re competing with states that have been very aggressive in improving their codes and enacting pro-growth tax reforms,” Gleason said, pointing to recent tax cuts and major reforms in Mississippi, Tennessee, Florida and other nearby states. “You’re surrounded by a lot of very competitive states that are already competitive in terms of what their tax and regulatory climates look like, but they’re still aggressively looking for ways to improve.” ART plans to study Alabama’s gas tax bill more in depth once it’s introduced. “We will be vigilant,” he said. You can listen to the interview on the Present Crisis Podcast below:
DC taxpayer watchdog Grover Norquist calls on Kay Ivey, lawmakers to resist gas tax hike
When the Alabama Legislature convenes in March one of the first things lawmakers are poised to consider is raising the state’s gas tax in order to help fund infrastructure improvements. But DC-based taxpayer watchdog Grover Norquist on Friday sent a letter calling on Alabama lawmakers to resist the urge to raise taxes, saying gas tax hike would “claw back the federal tax relief that their constituents received thanks to passage of the Tax Cuts & Jobs Act” last year. Norquist’s, founder and president of Americans for Tax Reform (ATR), call comes in the wake of Alabama House Majority Leader Nathaniel Ledbetter saying a gas chance is likely to pass this legislature this session. “While there are many opportunities to improve Alabama’s tax and regulatory climate, it’s important to first do no harm,” Norquist wrote in the letter. “As such, I urge that you reject the aggressive, but misguided push to hike the state gas tax, a proposal that would diminish and, in some cases, could totally erase the relief that your constituents have received from federal tax reform.” Looking to Ivey for support Norquist appears to have a particularly watchful eye on Alabama, keeping track of Gov. Kay Ivey and weighing-in on the state’s spending. In fact, he is counting on Ivey to stand up to the state legislature and veto a tax-hike if necessary. “There is a ‘secret’ plan to hike gas taxes after the election in Alabama. Good news is that Alabama Governor Kay Ivey has signed the Taxpayer Protection Pledge promising all Alabama voters she would veto any gas or other tax hike,” Norquist tweeted ahead of the general election. There is a “secret” plan to hike gas taxes after the election in Alabama. Good news is that Alabama Governor Kay Ivey has signed the Taxpayer Protection Pledge promising all Alabama voters she would veto any gas or other tax hike.#ALpolitics — Grover Norquist (@GroverNorquist) October 26, 2018 Ivey is listed as an “active” signer of the Taxpayer Protection Pledge, which asks candidates for federal and state office to commit themselves in writing to oppose all tax increases. ATR considers the pledge “binding as long as an individual holds the office for which he or she signed the Pledge.” Ivey signed the pledge Feb. 12, 2010 ATR State Relations Coordinator, Miriam Roff, confirmed to Alabama Today. At the time she was running in a crowded field for governor. Less than a month after signing the pledge, Ivey abandoned her run for governor and qualified to run for lieutenant governor. Ivey handily won the 2010 election for lieutenant governor, but it wasn’t until former Gov. Robert Bentley‘s resignation in April 2017 did Ivey find herself catapulted to the office of governor. In Nov., Ivey was elected to her first full-term as governor. Alabama Today reached out to Ivey’s campaign ahead of the election to see if Ivey was still standing by her pledge, but did not receive a response. Nor does it appear that the Ivey campaign reached out to ATR for a correction if she’s against keeping her pledge. Read Norquist’s full letter below: To: Members of the Alabama Senate From: Americans for Tax Reform Dear Senator, With the 2019 legislative session only a few months away, I write to encourage you and your colleagues to use the coming year to enact reforms that will help grow the state economy and protect taxpayers. While there are many opportunities to improve Alabama’s tax and regulatory climate, it’s important to first do no harm. As such, I urge that you reject the aggressive, but misguided push to hike the state gas tax , a proposal that would diminish and, in some cases, could totally erase the relief that your constituents have received from federal tax reform. Attempting to impose a regressive tax hike that will do the greatest harm to households who can least afford it is already bad enough. It’s even worse when it has already been documented that existing transportation dollars are not appropriately spent. Ballot measures to hike state gas taxes were resoundingly rejected in Missouri, Utah, and Washington State just last month. Between that and the throngs of French citizens now protesting President Emmanuel Macron’s gas tax hike, which he just suspended, it’s clear that gas tax hikes are a political loser, both at home and abroad. In addition to being terrible politics, the proposed gas tax increase is also bad policy. Consider that a state gas tax increase would counteract the benefits of federal tax reform and eat into Alabama taxpayers’ federal tax cut savings. This is one of the reasons why Congress has declined to raise the federal gas tax, despite pressure for them to do so; the same sort of misguided pressure that is currently being applied to you and your colleagues. According to Strategas Research Partners, 60% of the federal income tax cut would be wiped out by a $0.25 gas tax increase and rising prices: It’s no coincidence that the U.S. has reclaimed the number one spot on the World Economic Forum’s Global Competitiveness Index following enactment of federal tax reform that significantly cut federal income tax rates, both personal and corporate. The United States is a more attractive destination for investment and commerce following the enactment of federal tax reform, and global capital flows are expected to shift to the U.S. as a result. It’s clear that many investors, CEOs, and site selectors are bullish on the U.S. relative to other potential destinations for their capital. Yet once business owners or investors make the decision to bring new capital or create jobs in the U.S., either by relocating or expanding operations stateside, they then have 50 choices before them. That’s why it is more important than ever for state legislators in Montgomery to do everything they can to make Alabama an attractive place to invest, do business, live, and raise a family. This is why it is so critical for lawmakers to reject economically harmful policies, such as the proposed gas tax hike, that would make Alabama a
