The president of the Club for Growth, the conservative group that supports free-market candidates in GOP primaries, strongly criticized the proposal by Sen. Robert P. Corker Jr. (R.-Tenn.) and Sen. James P. Lankford (R.-Okla.) that would create an automatic mechanism to raise federal taxes in the Senate’s tax reform bill.
“The idea of a ‘tax hike trigger’ should be rejected on its merits,” stated Club for Growth President David M. McIntosh.
Corker and Lankford successfully included their proposal, which would immediately raise federal taxes if the economy’s growth fell below the growth rate assumed in the economic models used to score the bill’s effect on the federal debt, into the tax bill that was reported out of the Senate Budget Committee Tuesday.
The Tennessee senator is a member of the Budget Committee and he met with Majority Leader A. Mitchell McConnell (R.-Ky.) before he offered his amendment to the tax bill that passed the committee.
McIntosh said it defied logic that the Congress would raise taxes because the economy is growing too slowly.
“Any senator who understands basic business principles and truly cares about the deficit should understand that this trigger is an automatic tax increase and will actually harm economic growth,” he said.
“It will have harmful impacts on American businesses and undermine any economic growth potential in this tax reform bill because businesses will not invest due to the possibility of a higher tax rate,” he said. “What Senators Lankford and Corker are saying here is that if the deficit gets too large, then they want to tax people more.”
McIntosh said a better solution was to force cuts on the other side of the ledger.
“Here’s an idea. How about cutting spending? Just yesterday Senator Lankford issued 100 wasteful examples of federal spending. But instead of cutting the programs, ironically, Senator Lankford would allow wasteful measures like them to continue to receive funding – through his automatic tax increases no less!” he said.
“If they’re truly worried about the deficit and they want to establish a trigger, then they should limit the size of government. A spending cut trigger would be a far better idea.”
Joe Biden Places Two-Month Moratorium on New Oil Leases and Drilling Permits in New Mexico, A State He Won in November
What is he thinking?
President Joe Biden has placed a 60-day moratorium on new oil and natural gas leases and drilling permits in New Mexico, an action that’s a major cause for concern, according to the Associated Press.
New Mexico’s Permian Basin is often considered one of the best regions in the United States for the production of oil and natural gas. Local leaders in towns near the basin have expressed worry over Biden’s two-month moratorium on leases and permits, arguing that a permanent suspension would spell disaster for the New Mexican economy.
“During his inauguration, President Biden spoke about bringing our nation together. Eliminating drilling on public lands will cost thousands of New Mexicans their jobs and destroy what’s left of our state’s economy,” said Carlsbad Mayor Dale Janway. “How does that bring us together? Environmental efforts should be fair and well-researched, not knee-jerk mandates that just hurt an already impoverished state.”
It is also worth noting that Biden won the state of New Mexico in the 2020 election. He obtained 54.3 percent of the vote to former president Donald Trump’s 43.5 percent. Biden performed best in cities and the north and west, while Trump’s victories came in less populated areas and the southeast, the latter of which is home to the Permian Basin.
New Mexico ranks toward the bottom of all states in per capita income, rendering them one of the poorest in the US. The oil and gas and service industries comprise a significant chunk of their economy; hence one can imagine that they’ve suffered somewhat acutely as a result of the pandemic and the subsequent fall in oil prices.
Biden’s actions against the oil and gas industry will be something to keep paying attention to going forward.
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