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Advocacy / AMAC On Capitol Hill

AMAC Joins Coalition in Seeking Pro-growth Executive Order

growth conservative Scandal Democrat Republican capitol House democratsPresident Donald J. Trump
The White House
1600 Pennsylvania Avenue
Washington, DC 20500

Treasury Secretary Steven Mnuchin
U.S. Department of the Treasury
1500 Pennsylvania Avenue
Washington, DC 20220

September 26, 2017

Dear President Trump and Secretary Mnuchin,

On behalf of the following organizations representing millions of American taxpayers, we write to strongly recommend that you end the tax injustice that is currently included in the computation of capital gains. Specifically, we request an Executive Order that would index capital gains to inflation so that taxpayers do not pay taxes on “phantom” gains.

For much the same reason that income tax brackets were indexed to inflation over 30 years ago, we believe that it is only a matter of fairness to do the same for capital gains.

For example, if someone saving for retirement purchased an S&P index fund for $1000 in 1997 and dutifully held it for 20 years, they could now sell it for $2665. That’s a gain of $1665. Unfortunately, the full amount would be subject to taxation. But $538 of that $1665 isn’t a real gain at all. It’s phantom income that was eaten away because of inflation. And yet, taxpayers are currently forced to pay taxes on this nonexistent income.

Signing this Executive Order would have an immediate, pro-growth effect on the American economy. The real after-tax rate of return on all equities would immediately be priced higher – thereby increasing the wealth held by the millions of working and retired Americans who own 401ks, IRAs, mutual funds, and brokerage accounts. It would further encourage people to expand their savings, and incentivize people to start doing so. By preventing the money from unjustly going to the government, it could be re-invested in the economy, allowing businesses to expand, innovate, and create more jobs.

We strongly believe that this Executive Order is a pro-growth “down payment” that will help ignite the broader conversation about tax reform. And our groups look forward to the opportunity to continue working with the Administration to enact comprehensive tax reform this fall.

Sincerely,

David McIntosh, President
Club for Growth

Adam Brandon, President
FreedomWorks

Michael Needham, Chief Executive Officer
Heritage Action

Phil Kerpen, President
American Commitment

Jenny Beth Martin, Co-Founder
Tea Party Patriots

Judson Phillips, President
Tea Party Nation

Larry Kudlow
Committee to Unleash Prosperity

Brian Wesbury, Chief Economist
First Trust Advisors, LP

Pete Sepp, President
National Taxpayers Union

James L. Martin, President
60 Plus Association

Lewis K. Ulher, President
National Tax Limitation Committee

Heather Higgins, President
Independent Women’s Voice

Rick Manning, President
Americans for Limited Government

Grover Norquist, President
Americans for Tax Reform

Karen Kerrigan, President & CEO
Small Business and Entrepreneurship Council

Andrew F. Quinlan, President
Center for Freedom and Prosperity

Becky Norton Dunlop
Former Advisor to President Reagan

Ryan Ellis, Senior Tax Advisor
Family Business Coalition

Dan Weber, President
Association of Mature American Citizens

Bob Carlstrom, President
The Carlstrom Group, LLC

Jeffrey Mazzella, President
Center for Individual Freedom

Tim Huelskamp, Ph.D., President
The Heartland Institute

Chrissy Harbin, Vice President of External Affairs
Americans for Prosperity

Jorge Lima, Executive Director
The Libre Initiative

Nathan Nascimento, Vice President of Policy
Freedom Partners Chamber of Commerce

David Barnes, Policy Director
Generation Opportunity

 

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PaulE

1) What AMAC wants is outside the powers of the President. AMAC is asking for the President to revise tax law. That is the sole responsibility of Congress. Executive orders are NOT for revising existing laws. Only Congress can do that or have you learned NOTHING from the Congressional farce surrounding Obamacare. If Trump could legally merely issue an executive order to change existing law, in this case simply render Obamacare null and void or radically changed the law, he would have done so Day One. The same holds true of what you are asking Trump to do for capital gains taxes via an executive order. 2) The solution you propose is ludicrous. It compounds the complexity of the tax code and would only add to the nightmare of tax preparation as one would not only have to record the baseline cost of the stock purchased, but also factor in… Read more »

Ivan Berry

This is much like asking for an Ex. order for the Treasury to ask the FED to raise interest rates so the government could reduce revenue rather than reduce spending and old folks’ safest investments could still offer good returns. As far as inflation goes, the figures on that are bogus.
Congress was given the power to tax and spend, and they have been expert at that. They even passed legislation making the old 20 dollar gold piece exchange rate of no more than 50 dollars when spent as currency.
We need to dismantle the administrative state, not enlarge it. But why bother. Government just goes on it’s merry way. So far Trump cannot get Congress to apply his agenda. But Executive Orders?

Ivan Berry

As an important aside despite whether you are for or against unconstitutional executive orders, it would be a good idea to keep a list of sponsors and signers of this letter requesting same. I have them archived so as to not fall easily for any further items of their agendas. Most of them claim conservatism. Their definition must not coinside with mine. How about yours?

Wylie

No body seems to under stand we have 3 branches of Govt, ( WELL MAYBE NOT ) a Constitution ( WE THE PEOPLE ) and a Bill of Rights ( NOT GIVEN TO US BY MEN ) Our Congressional, Executive and unconstitutional alphabet soup leaches think one person can dictate any law the want. And the Sheeple have let the wolf protect the chicken house! Our children being indoctrinate by the wolves! MOLON LABE!