New report shows every congressional district benefits from Trump’s tax reform
Voters in every congressional district across the country are benefiting from President Donald Trump’s tax reform package, according to a new report released Monday. In the report released by the conservative public policy think-tank Heritage Foundation analysts found “the average household and the average married couple with two kids in every congressional district in every state benefit from the tax cut, both in 2018 and over the next 10 years.” According to the report, due to Trump’s tax reform, the typical household in every congressional district will see a reduction in tax liability in 2018. Nationally, 89 percent of Americans will see either a tax cut or no change, and approximately four million additional low-income filers will not pay any income taxes in 2018. “Districts with smaller average income tax burdens tend to see the largest percentage reductions in their total income tax bills. High-income districts tend to see the largest tax cuts as measured by dollar value,” the report continued. The report did note that their estimates “assume that the tax cuts expire in 2025 and that Washington continues to run large and unsustainable deficits.” “Making the TCJA permanent and reforming spending to align with projected revenues could significantly increase our estimates of the changes in gross domestic product, income, investment, and wages,” it continued. “Repealing the TCJA, on the other hand, would undo its economic gains.”
Donald Trump tax reform means more money in your pocket
The Trump presidency, while controversial in some ways, has also been very effective in others. We should give credit where credit is due. Trump’s plan is a win for Alabama families who will have more money in their pockets in coming months due to the national tax reform plan passed by Congress and signed by the President right before Christmas. If you missed it, last week the Alabama Public Service Commission (PSC) voted on $337 million in energy cost relief for Alabama residents. It’s estimated that families will save around $250 from July, when the savings go into effect, through the end of the year. Even House Speaker Paul Ryan highlighted the benefits of the cuts here in Alabama in a release from his office. In the few months following the passage of the Tax Cuts and Jobs Act, utility companies in 48 out of 50 states, and DC, have taken action to pass their federal tax savings on to their customers. This means more than 87 million customers across the country—so far—are set to see lower monthly utility bills. Just this week, Alabama Power Company announced that it would be reducing its customers’ bills by $257 million this year. That’s 1.4 million Alabamians who will now be paying less each month for their utilities. The President doesn’t get a lot of good press even when he and his administration have positive results. At the same time Alabama’s Public Service Commission rarely makes the news, so lets not miss this opportunity to give both an “atta boy.”
Gary Palmer: Tax reform is giving back
On this Tax Day, I’m glad to think of the many families in America who are reaping the benefits of tax reform. Since its passage in December 2017, the Tax Cuts and Jobs Act has continued giving back to the American people in tangible ways. It has allowed families to keep more of their hard-earned paychecks, lowered the corporate tax rate, enabled businesses to increase worker pay and benefits, and stimulated economic growth. I recently spoke on the House floor to share stories of how the Tax Cuts and Jobs Act has positively impacted Alabama’s sixth district. In case you missed it, the full speech can be watched here. I’d like to share some examples with you of how tax reform is giving back to the American people. The rewards are clear within Alabama and throughout the country. In the sixth district of Alabama, many organizations are raising pay, giving bonuses, and increasing their charitable giving. Regions Bank, also headquartered in Birmingham, has raised its minimum pay to $15 per hour, plans to contribute $40 million to their charitable foundation in 2018, and is increasing their capital expenditures by $100 million this year. Small businesses are also seeing benefits. Wadsworth Oil, a heating oil supplier in Clanton, recently gave over $22,000 in bonuses to its employees. Individual pay raises and increased financial flexibility for businesses will have positive effects across the sixth district. I have also heard from many constituents that the tax cuts are helping their families to pay monthly bills, make college tuition payments, and put away more in savings. For example, a Mountain Brook resident recently noted that she deposited a $1,000 bonus into her health savings account. Another constituent from Hoover shared that he now keeps more of his paycheck, which has allowed him to make payments toward his mortgage principal and contribute more to his 401(k). Finally, there is also general optimism about the economic future of America as a whole. In 2019, the majority of tax relief is projected to flow to families that make under $200,000 per year. Currently, unemployment rates are at their lowest since 1973, and 31,000 jobs were added to the labor market in February 2018 alone. Despite opposition, Republicans in the House and the Senate delivered a significant win for the American people with the Tax Cuts and Jobs Act. I remain committed to building on this win by pursuing more policies that continue to strengthen the economy and give back to American families. ••• Gary Palmer represents Alabama’s 6th Congressional District in the U.S. Congress.
Tax day is here: Americans still largely unaware of tax reform benefits
Federal income tax day is here, marking the final Tax Day under America’s old tax system. With the new system in effect starting the 2018 tax season, a new survey reveals significant misunderstandings about the newly passed income tax reforms, including whether it will be simpler and will save middle-income Americans money. Conducted by the James Madison Institute (JMI), a free-market think tank dedicated to the principles of economic freedom and limited government, the survey found states with more complex tax codes have higher preparation and filing costs for individuals and higher administration costs for state governments. “Predictably, the survey found Americans evenly split between feeling stressed, annoyed, or relieved about their taxes. But many of those surveyed see no relief in sight, despite the benefits in store next year,” stated the results. “Although the tax reforms will substantially simplify income tax filings and will return an estimated $1,000 in additional tax payments to the average middle-income American, many taxpayers – including conservatives – aren’t convinced. The JMI survey found Republicans and Democrats alike generally support the idea of a simplified income tax system. Specifically: 56% of survey respondents support efforts to simplify the federal income tax code to the point where the return could fit on a postcard (59% of Republicans and 54% of Democrats). 71% of those surveyed find the current tax code to be complicated, with only 15% finding it simple and the remaining 14% unsure. “Two central features of the federal tax plan include a lower burden on middle-income households and a simpler process – yet few Americans are aware of these improvements,” said Dr. Robert McClure, JMI’s President and CEO. “The survey findings show that many Americans assume their taxes will become more burdensome and more complicated. Yet while the federal government has simplified the tax code, 6 in 10 Americans live in states with their own complicated state income tax codes. Such complexity comes at a price – for families and states alike.” The survey of 1,343 American adults was conducted April 3-8, 2018, via SurveyMonkey Audience, with respondents representative of American households in terms of political ideology, age, region, and income distribution. Noting that approximately one-third of Americans feel “stressed” about Tax Day, one-third feel “annoyed,” and one-third feel “relieved,” McClure added: “We’re hopeful the number of Americans who can say they feel relieved will increase in the years ahead as they learn more about the benefits of tax reform and the state and federal governments become more dedicated to simplifying their respective tax codes.”
Alabama among states benefiting most by Trump’s tax overhaul
The Yellowhammer State is among the states reaping the most benefits from President Donald Trump‘s recently enacted federal tax overhaul. According to a new report from personal-finance website WalletHub, Alabama takes home the no. 2 spot on the list of 2018’s States Most Affected by Tax Reform. While the changes to the tax law won’t affect most Americans’ 2018 filings for the 2017 fiscal year, 2019 will be a much different story. Citizens of certain states will benefit more than others, too. In Alabama, high-income earners will benefit more so than in any other state. Average tax change in Alabama (1= benefiting the most, 25= avg.): 47th: Low-income families 15th: Middle-income families 1st: High-income families The study also concluded red states are benefiting slightly more than blue states from tax reform as red states received an average ranking of 24.17 versus blue states’ 24.62. Along with Alabama, the states reaping the most benefits from tax reform are Alaska, Tennessee, District of Columbia and Nevada. The states found to be least affected by the overhaul are West Virginia, Connecticut, New York, Maryland and New Jersey. In order to determine which states will get the best tax breaks going forward, WalletHub compared the 50 states and the District of Columbia based on the state-specific average tax change for low, middle and high-income families. Here’s how Alabama compares to the rest of the country: Source: WalletHub
Charter Communications ups minimum wage to $15 an hour, credits tax law
The telecom giant Charter Communications is raising the minimum wage to $15 per hour, the company announced in a blog post Friday. Charter’s 95,000 employees will see the increase by the end of the year confirmed CEO Tom Rutledge. The company cited President Donald Trump‘s historic tax reform legislation — which reduced the corporate tax rate from 35 percent to 21 percent — and the Federal Communications Commission’s December repeal of net neutrality rules as major reasons for increasing compensation. “With the resources and investment confidence resulting from historic tax reform legislation and the FCC’s removal of the 1930’s era regulatory framework for internet service, Charter is increasing our investment in our workforce,” Rutledge said. “Raising our minimum wage is the right thing to do for our employees and our company. The majority of our employees are call center representatives, field technicians and staff at Spectrum stores,” Rutledge continued. “Our commitment to pay every employee at least a $15 per hour income will enhance our efforts to develop our highly-skilled, diverse and locally based workforce, improving their lives and the lives of the customers they serve.” Most of Charter’s approximately employees are call center representatives, field technicians and store staff. They are the face of Charter some 26 million customers across 41-states. Charter also plans to hire more than 20,000 employees by 2020 and the minimum wage increase will “enable [Charter] to better attract, train and retain the highly skilled, diverse workforce we want and need to solve [their] customers’ problems or install cable broadband service in their homes.” Charter also reiterated its plan to invest $25 billion in infrastructure. The company said it is continuing to expand its broadband network, which includes trying to reach more rural communities, “with a minimum speed of 100 Mbps, to more communities across the country.”
Martha Roby: Tax cuts for the New Year
This time around, the new year is offers something extra exciting for the American people. I’m pleased to report that Congress has finally passed our historic, pro-growth tax reform and Americans will soon being experiencing the benefits. After months of work, we have delivered on our promise to cut taxes, bring balance to the tax code, and jumpstart job growth. While the House passed its version of tax reform months ago, differences between the House and Senate versions of the bill had to be worked out in a conference committee. I was proud to support the final product and vote alongside my colleagues to send the Tax Cuts and Jobs Act to the President’s desk. The Tax Cuts and Jobs Act lowers individual tax rates and roughly doubles the standard deduction for individuals and married couples. That means less of your paycheck is subject to taxes beginning this year. The average, median-income American family will see about $2,100 in tax relief – not just one year, but annually. For moms and dads working to make ends meet, having a few thousand extra dollars in the budget can make a big difference. It’s your money to begin with and I believe you know how to spend it better than the federal government does. Another important aspect of our tax reform plan is lowering business taxes. A lot of people don’t realize that our effective tax rate for businesses is among the highest in the world. All that does is send jobs overseas and make it harder for small businesses to be successful. By lowering business taxes to a globally-competitive 21 percent, we can boost our economy and spur job growth here in the United States. While our bill eliminates many unnecessary and burdensome special-interest deductions, it also preserves a lot of the popular tax deductions people count on, including the student loan interest deduction, the deduction for teachers’ expenses, the medical expense deduction, the charitable giving deduction , the adoption tax credit, and the mortgage interest deduction. It doubles the Child Tax Credit to help working families, and it eliminates the Obamacare individual mandate tax penalty. After the bill passed, I joined my colleagues and the President at the White House to celebrate this monumental accomplishment. My children, Margaret and George were on break from school for the holidays, so they were able to be in Washington and attend the event with me. I am so thankful they were able to witness this historic moment. This is a once-in-a-generation opportunity to reduce the tax burden on American families and grow our economy – and I’m glad we could deliver on this promise we’ve been making for so many years. A lot of misinformation has been spread by those who oppose this plan, and it’s generated some confusion about what our bill does and does not do. Regardless, I am confident the results will speak for themselves. The American people will know who was telling the truth when they see more money in their pockets and experience a growing economy thanks to our historic tax reform plan. I am proud that we were able to come together and deliver this relief to families and businesses just in time for 2018. Happy New Year! ••• Martha Roby represents Alabama’s Second Congressional District. She lives in Montgomery, Alabama with her husband Riley and their two children.
US Senate passes historic tax reform legislation
The U.S. Senate passed the most historic rewrite of the nation’s tax laws in more than three decades Tuesday night by a 51-48 vote. The product of years of discussion, weeks of committee consideration and hours of floor debate, H.R. 1, the Tax Cuts and Jobs Act, will lower individual, small business, and corporate tax rates, double the standard deduction, repeal the Obamacare individual mandate, simplify the tax code, and dramatically increase the child tax credit. The Senate-passed report will receive a final vote in the House Wednesday morning before being sent to the White House for President Donald Trump’s signature. Alabama’s senior U.S. Sen. Richard Shelby voted in favor of the legislation, saying its passage will help put money back in the pockets of the middle-class Americans who have earned it. “The Senate today passed historic legislation to deliver pro-growth, middle-class tax relief to the American people. This bill not only lowers individual and corporate tax rates, lightening the burden on small businesses, but it works to revitalize our economy – impacting current and future generations to come. Across the nation, this legislation will help create jobs, increase paychecks, and make the tax code simpler and fairer,” said Shelby. “I am proud that we are able to work together to fulfill our commitment to deliver real tax reform and put money back in the pockets of the middle-class Americans who have earned it. This is a once-in-a-generation opportunity to change Americans’ lives for the better.” Alabama’s outgoing U.S. Sen. Luther Strange also voted in favor of the bill. “Tax relief is not pie in the sky. Today, it becomes reality for the American families working hard to make ends meet,” said Strange. “It becomes reality for the small businesses that serve as cornerstones of our communities. It becomes reality for job creators who know the power of American industry. Getting tax relief accomplished is the reason I came to Washington, and on behalf of Alabama, I was proud to cast my vote tonight.”
House passes Trump tax cuts; Alabama delegation splits on party lines
The House on Tuesday approved the most sweeping federal tax overhaul since 1986. The bill, which lowers income tax rates for families and businesses while closing special interest loopholes, passed by a 227-203 margin along party lines with all but one member of the Alabama delegation voting in favor of it. The Tax Cuts and Jobs Act now awaits final passage by the Senate, which is expected later Tuesday. Here’s what the Alabama delegation had to say about their votes: Alabama 1st District U.S. Rep. Bradley Byrne: Today, we are giving the American people a huge Christmas present: lower taxes, a stronger economy, and more money in their pockets. This historic vote will pave the way for more jobs and bigger paychecks for families in Southwest Alabama and across the United States. A lot of hard work and countless hours went into making today’s vote possible, and I appreciate all those who had a hand in this historic moment. Here in the People’s House, we will continue to pursue policies that ease the burden of the federal government and make life better for American families. Alabama 2nd District U.S. Rep. Martha Roby: The Tax Cuts and Jobs Act is a once-in-a-generation opportunity to reduce the tax burden on American families and grow our economy – and I’m glad we could deliver,” Roby said. “Under this legislation, a median income American family will get a tax cut of approximately $2,100 not just one year, but annually. It’s their money to begin with, and I believe families know how to spend it better than the government does. I look forward to the Senate swiftly passing this bill and the President signing it into law. Alabama 3rd District U.S. Rep. Mike Rogers: After over 30 years, the day has finally come for this historic tax legislation to simplify our broken tax code. I was pleased the bill passed the House today with my strong support and look forward to seeing the relief it brings to hard-working families across East Alabama and America. The legislation will let Americans keep more of their hard-earned paychecks, will lower the corporate tax rate to make American businesses more competitive and will increase the Child Tax Credit. The bill also eliminates Obamacare’s individual mandate so that families can have more freedom in their health care decisions. Alabama 4th District U.S. Rep. Robert Aderholt This afternoon, I voted in the House of Representatives, to give back more money to Alabama taxpayers. Far too many of the people in Washington believe that the government should have a right to a high percentage of everything you earn. Those people are wrong. It is your money, and you should be able to keep even more of it. “This tax bill does the right thing. It doubles the child tax credit. It doubles the standard deduction. It keeps medical deductions and mortgage deductions, and more than 80% of the people in the 4th District of Alabama will receive a tax cut. This is also a jobs bill. By lowering the corporate tax rate, businesses are no longer rewarded for moving their businesses and jobs overseas where tax rates are cheaper. Our cumbersome, 20th Century tax code desperately needed updating. This bill achieves that goal. Alabama 5th District U.S. Rep. Mo Brooks: America faces a dangerous $20 trillion national debt and an unending string of $1 trillion/year deficits starting in just four years. Economic growth is critical to avoid a national debilitating insolvency and bankruptcy that could destroy an American economy it took our ancestors centuries to build. The Tax Cuts and Jobs Act cuts corporate and pass-through tax rates, allows full and immediate expensing of new equipment, and encourages companies to bring back overseas profits needed to spur investment in factories and jobs in America. Overall, these tax reforms make American job-creators more competitive in a cut-throat international marketplace, thereby protecting and creating even more jobs and bigger paychecks for struggling American families. Alabama 6th District U.S. Rep. Gary Palmer: The Tax Cuts and Jobs Act will provide a much needed tax break for hardworking Americans for the first time in 31 years. Our tax plan not only puts more money in the pockets of the American people, but will also launch economic growth. Over the previous eight years our economy only grew at an anemic 1.8 percent per year because businesses were shackled by a complicated and burdensome tax code that was designed for a 1986 economy. The tax reform bill the House just passed removes the shackles and brings our tax code up to date with today’s economy and with American families and workers. Alabama 7th District U.S. Rep. Terri Sewell: The GOP tax bill that passed the House today is a giveaway for the wealthy paid for by America’s working families,” said Rep. Sewell. “Real tax reform should put working families first, make our workforce more competitive, and it should simplify the tax code in a fiscally responsible way. Today’s tax bill does the opposite. In Alabama, the bill will give the richest one percent a $4,450 tax cut, while the bottom 80 percent will see a $117 tax increase. In total it will increase taxes for an estimated 545,000 working families in Alabama. This bill is a raw deal for working families, and it cannot in good conscience be called tax reform. I am deeply disappointed that Republicans threw away this opportunity for bipartisan cooperation.”
Kay Ivey joins fellow Governors, urges GOP leaders to pass tax reform
Governor Kay Ivey on Thursday announced she has joined fellow Republican governors in sending a letter to House Speaker Paul Ryan and Senate Majority Leader Mitch McConnell, urging Congress to pass tax reform legislation. “President Trump is proposing the largest tax cut for American families and businesses in decades,” Ivey said. “The current tax structure is oppressive to families and businesses alike, and it simply sets us up for failure in today’s global economy. We’ve proven in Alabama, with the lowest unemployment rate in history, lower taxes and less government regulation produces jobs – it’s time Washington joins us in our efforts.” The letter, signed by Ivey and 21 of Republican gubernatorial colleagues, urges both chambers of Congress to accomplish comprehensive tax reform on behalf of all Americans. According to Ivey, our nation’s tax code is outdated and in desperate need of reform. The current corporate tax rate of 39 percent is the highest among industrialized nations and puts American workers and businesses at a major competitive disadvantage. “Tax reform is good for families, businesses and for our country,” Ivey concluded. “Cutting and simplifying taxes is the right thing to do for all Americans, and it is certainly right for Alabama. Thriving small and midsize businesses are essential to spur economic growth and to create new jobs. We need a tax code that propels businesses to success rather than punishing them for their success.” Ivey urged Congress to enact tax policies which encourage businesses to return to the United States, as well as policies which will remove burdensome regulations, resulting in businesses investing in their employees, through higher wages, and in growth to their bottom lines. Read the full letter below:
Daniel Sutter: Economists versus tax deductions
The current debate in Congress over tax reform highlights a favorite argument of economists: that we should eliminate loopholes, like the deductions for mortgage interest or state and local taxes, and use the savings to lower tax rates. The argument illustrates both core economic principles and the limitations of a purely economic analysis. Government needs resources to purchase military equipment, pay for medical care, or build new prisons. If the government spends $1 million, we citizens must pay $1 million in taxes. But taxes also affect peoples’ choices, meaning that $1 million in revenue for the government will cost the economy more than $1 million. We can see this by considering the mortgage interest deduction. When you pay $1,000 on a mortgage, the interest paid reduces the income tax you owe. Factoring the taxes avoided in, the mortgage payment might only cost $800. Paying $1,000 in rent costs the full $1,000. This makes buying a home more attractive relative to renting, and so some people who would prefer to rent instead of buy at these prices will buy for the tax deduction. Exemptions and deductions leave us with a smaller tax base and so tax rates must be higher to raise a given amount of revenue. The Federal income tax collected $1.5 trillion in 2015, when national income was about $15 trillion. A flat tax rate 10 percent on all national income would raise this sum. If deductions excluded $5 trillion from the base, we would need a 15 percent flat rate to raise the same $1.5 trillion. As the tax rate is pushed higher, potential deductions become more valuable. Consequently, more decisions are made for tax purposes and the full cost of taxes increases; the extra cost increases faster than the tax rate. Furthermore, because income taxes distort work choices, lower tax rates should also spur economic growth. President Ronald Reagan’s 1986 tax reform closed many loopholes and reduced the top income tax rate from 50 percent to 28 percent. Because the lower rates were applied to a broader base and thank to economic growth, income tax revenues actually increased. The economics of taxation, however, arguably ignores politics. This omission is especially troubling if you believe that government is too big and out of control. George Will recently said of a current proposal to tax university endowments: “Once the understanding that until now has protected endowments is shredded, there will be no limiting principle to constrain governments … in their unsleeping search for revenues to expand their power. Public appetites are limitless, as is the political class’s desire to satisfy them.” Nobel-prize winning economist James Buchanan demonstrated how a government trying to raise as much revenue as possible invalidates economists’ tax recommendations. Base broadening could become a clever way to increase our taxes. The deductions protecting our income get eliminated – permanently – in exchange for temporary tax cuts. Indeed, the top Federal income tax rate has increased to almost 40 percent after 1986. This becomes even more relevant because we can partially constrain government. The public response to President Donald Trump’s promise to drain the swamp reflects, I think, a widespread feeling that Washington is out of control. Yet elected officials clearly recognize the unpopularity of tax hikes. We do not really understand why some constraints, like the mortgage interest deduction, have constrained Congress. A tax deduction would be causing extensive losses before I would recommend its elimination. The exemption for employer-provided health insurance is one example. This exemption ties health insurance to employment for most Americans, which both creates a need for Medicare and Medicaid and massively distorts spending. We must pay taxes to fund government, and the full cost of taxes depends on how many decisions households and businesses make solely to reduce the taxes they pay. Consequently, economists generally recommend lowering tax rates and paying for this by eliminating deductions. But some of our deductions have successfully kept politicians from taxing more of our money, and should not be discarded lightly. ••• Daniel Sutter is the Charles G. Koch Professor of Economics with the Manuel H. Johnson Center for Political Economy at Troy University and host of Econversations on TrojanVision. The opinions expressed in this column are the author’s and do not necessarily reflect the views of Troy University.
Phil Kerpen: Why Congress should pass tax reform before Christmas
Unemployment is low, stocks are booming, and business confidence is soaring to record highs. Yet wages for too many Americans are still barely increasing after eight long, flat years of the Obama presidency. The American people deserve a raise, and the Tax Cuts and Jobs Act will deliver one. Middle class families would see a significant boost in take-home pay if the proposed tax changes take effect in 2018. Under the Senate version, the standard deduction jumps from $13,000 to $24,000 for a married couple and from $6,500 to $12,000 for a single filer. Above the much more generous deduction amount, the rate would be cut to 12 percent all the way up to $77,400 for married couples and $38,700 for singles. The rest of the rates would also be cut, providing tax cuts at every income level – while the share of all federal income taxes paid by millionaires would tick up from 19.2 percent of all revenues to 19.7 percent. The bill doubles the child credit to $2,000 per child and makes it nearly universal. That has been a top priority of Senators Mike Lee of Utah and Marco Rubio of Florida, who argue that making the tax code less punitive toward investment requires recognizing the enormous capital required to raise children. Perhaps more significant than these direct tax cuts is the impact of the bill’s business tax cuts on wage growth. The U.S. is presently uncompetitive internationally, with the highest corporate tax rate in the world and a perverse system that penalizes companies for bringing home the profits of their foreign subsidiaries. An analysis by Council of Economic Advisers Chairman Kevin Hassett finds that fixing these problems will raise household incomes $4,000 to $9,000, with around two-thirds of the benefits of business tax reform flowing to labor. While other economists disagree about how much wages will jump if the business tax system is fixed, there is overwhelming empirical and theoretical evidence that wages will rise considerably. While a lot of attention has focused on the Senate bill fully repealing the deduction for state and local taxes (the House version retained it for property taxes up to $10,000 per year), the vast majority of taxpayers are unaffected by the provision because they either already claim the standard deduction or will at its new much higher levels. For taxpayers who still itemize, the repeal of the alternative minimum tax largely offsets the loss of the state and local deduction, and the other features of the bill likely put them ahead overall. For most taxpayers, ending the deduction is an implicit tax cut, because it will stop high tax states from exporting their tax burden to the rest of us. A recent example is in New Jersey, where State Senate President Steve Sweeney reacted to the election of a Democratic governor by saying the state’s first order of business would be to enact a millionaires tax – only to backtrack, explaining that if federal tax reform passes he would reconsider because New Jersey millionaires would not be able to write off the new tax on their federal returns. The Senate also added two new crown jewels to the House version: repeal of the Obamacare individual mandate tax and oil drilling in the ANWR area of Alaska. The individual mandate is the corrupt, hated, beating heart of Obamacare – the idea that people should be required to buy overpriced insurance products they don’t want or pay a penalty tax. Obama himself campaigned against it in 2008, saying a mandate would mean “people are being fined for not having purchased healthcare but choose to accept the fine because they still can’t afford it even with the subsidies. They are then worse off. They then have no health care and are paying a fine above and beyond that.” IRS data show that 79 percent of taxpayers who pay the mandate tax make less than $50,000 and 37 percent make less than $25,000. The best argument mandate supporters can muster is that if people are not taxed for opting out of Obamacare, more people will opt out. But it’s hard to see how people who might sign up solely to avoid the mandate tax are hurt by having the option to say no. And removing the mandate will set the stage for more sweeping health care changes to lower premiums and give Americans more health care choices next year. The ANWR provision would be a big boost to American energy production and would help realize a vision of an America that is energy dominant. It would also represent a victory over a multi-decade spin campaign in which the environmental left turned a nearly desolate tundra into the key symbolic battleground for stopping energy development in the name of environmentalism. It is not often that a piece of legislation holds the promise of slashing the taxes on families, growing their wages, freeing them from a burdensome health care regime, and expanding American energy dominance. It’s time to stop handwringing about its minor flaws, see the big picture, and put this bill on President Trump’s desk in time to make this a very merry Christmas for American families. ••• Phil Kerpen, a leading free-market policy analyst and advocate in Washington, leads American Commitment. Prior to joining American Commitment, Kerpen was the principal policy and legislative strategist at Americans for Prosperity for over five years.
