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Don't Waste The Lame Duck: Pass Penny Plan and Tax Cuts

Our friends at the Club for Growth recently released a poll that shows voters overwhelmingly support Congress passing pro-growth policies during the lame duck session, which includes making tax cuts for working families and individuals permanent and passing the “Penny Plan” to reduce the deficit. 

Sponsored by Senator Rand Paul (R-KY), the Penny Plan cuts federal spending by just one percent every year until the budget balances.  For more information about his plan, click here.  Companion legislation is also Rand Paul Penny Planpending in the House. Dr. Paul’s balanced budget also reforms Congress’ reconciliation and budget processes - all without making any changes to Social Security.

The Bipartisan Budget Act of 2018 raised the discretionary spending caps imposed by the Budget Control Act of 2011 nearly $300 billion. With federal debt over $21 trillion, the negative impact of borrowing more money for this spending outweighs any benefit derived from it. 

The new tax law passed by the GOP Congress slashed the corporate tax rate permanently from 35 percent to 21 percent, however, its tax cuts for individuals and the millions of U.S. "pass-through" businesses expire in eight years. The "pass-through" businesses funnel their income to owners and other individuals, who then pay personal income tax on those earnings, not the corporate rate. They are allowed under the new law to deduct 20 percent of the first $315,000 of their earnings.

The Republican-led House passed a bill to make the individual tax cuts permanent, but the Senate has yet to act on the legislation, making action by the Senate during the Lame Duck imperative, since House Democrats opposed the legislation.

A brief summary of the results of the polling are included below.  A memo of the results can be found here.  Upon release of the poll, Club for Growth President David McIntosh offered the following statement:

“Americans of all stripes have long supported policies to get our nation’s fiscal house in order.  In the remaining days that Republicans have in control of Congress, they should not delay and should make the tax cuts permanent for individuals.  And to eliminate deficits and reach a balanced budget, Congress should also pass the Penny Plan.  Republicans have one final opportunity in the lame duck session to give Americans lasting financial relief while simultaneously putting our nation on a course of fiscal solvency.  Republicans should not squander this final opportunity to do what’s right for the American people.  And the good news is, Americans overwhelmingly support them in this effort.”

We urge CHQ readers and friends to contact their Senators today to tell them not to waste the Lame Duck. This is the last opportunity Republicans have to advance important pro-growth economic and tax policies before radical Far-Left Democrats takeover the House and impose gridlock on President Trump’s conservative economic growth agenda. The toll-free Capitol Switchboard is (1-866-220-0044) call TODAY.

Americans Want Congress to Make Tax Cuts Permanent

Nearly three-in-five (59%) voters say they would support making the tax cuts for individuals and working families permanent during the lame duck.

An overwhelming majority (75%) of Republicans and a majority (55%) of Independents support making the tax cuts permanent. Even a plurality (47%) of Democrats support making the cuts for individuals and working families permanent during the lame duck.

Americans Want to See Congress Pass the Penny Plan

Nearly seven-in-ten (68%) voters say they would support passing the Penny Plan during the lame duck.

The Penny Plan enjoys broad bipartisan support with three-quarters (76%) of Republicans, 68% of Independents, and 63% of Democrats support passing it during the lame duck Congress.

The survey was conducted for Club for Growth by WPA Intelligence.  WPAi conducted a national online study of actual voters in the 2018 general election.  Data was collected from n = 2,001 actual voters from November 12-15, 2018, and the margin of error is ±2.2%.

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