In Biden’s America, Americans Should Go Where They’re Treated Best

With President Biden’s approval rating down to 36 percent, he is now more unpopular than his two predecessors ever were in office.

But, beyond politics, the very idea of America is losing luster. Nearly two-thirds of Americans (and rising) believe their country is headed in the right direction. For decades, it was assumed that America is the place to be an entrepreneur. The U.S. economy was synonymous with the American Dream. No longer: Upward mobility may be more alive in Canada than in America.

Indeed, upward mobility has been disincentivized, while the climbers are punished for daring to succeed. Government benefits are plentiful, while “taxing the rich” is the easiest refrain in politics. Under President Biden’s “Build Back Better” plan, the average top tax rate on personal income would reach 57.4 percent in the United States—the highest rate in the Organization for Economic Co-Operation and Development (OECD). All 50 states, plus Washington, D.C., would impose top tax rates on personal income exceeding 50 percent.

Today’s experiment in Big Government won’t end well for the United States. But it will make entrepreneurs, investors, and other wealthy Americans reconsider their place in the world and reevaluate their options—and that’s a good thing. Countries should compete for residents. If people aren’t treated well in one country, why shouldn’t they go where they’re treated better?

People with means ultimately go where they’re treated best, and Americans are reaping the benefits of globalization more than ever before. From Croatia to the Caribbean, digital nomads across the socioeconomic spectrum are leaving one lifestyle for a better one. 

As an offshore consultant who guides clients to where they’re treated best, I regularly advise high-net-worth individuals on second citizenship and residences. And, in recent months, I have seen a 300 percent increase in wealthy Americans seeking better tax climates and brighter futures. They have had enough of 50 percent tax rates.

While tax policy is a top complaint, there are other gripes. One is “woke” culture, which tightens the parameters of free speech and forces people into submission through political correctness. In a world of seemingly endless cancellations and contrived apologies, the First Amendment is under attack from all sides, while its public defenders are fewer and farther between.

Put it all together, and the result is a less appealing America to those with options. Other than patriotism and personal allegiance, why should a New York entrepreneur remain in a city with rising crime and legal drug injection sites? Why put up with constantly changing COVID-19 policies in Washington, D.C., when foreign governments may be more transparent? Why stick with 50 percent tax rates when tax climates are better in dozens of Asian, European, and South American countries?

I have lived in dozens of countries around the world, and it’s reassuring to escape the radical Left’s grasp abroad. In some Eastern European countries, “wokeism” doesn’t even exist. Politics isn’t a fact of everyday life. People treat each other like human beings, not Twitter bots. In many Latin American countries, you can live more affordably and retain your individualism—free from government overreach. The same goes for certain Asian countries that continue to value entrepreneurship and upward mobility—with no disincentives, no punishments.

This is not to be alarmist for alarmism’s sake. But Americans need to ask themselves, and they are: Am I treated well here? Can I live better elsewhere?

With each passing day, more and more Americans are rethinking the meaning of “home.” The ongoing exodus to Florida is a perfect example. If people can move from New York to the Sunshine State for a better tax climate and brighter future, why can’t they move abroad too?

They can, and they are. The American exodus is here to stay and growing by the day.

Andrew Henderson is the founder of Nomad Capitalist, an international offshore consulting firm.

Justin Olson, Looking Ahead for Ratepayers

Justin Olson

Justin Olson

Arizona Corporation Commissioner Justin Olson believes Arizona ratepayers should benefit from federal tax reform. For Olson, that means Arizona utility companies should pass their tax savings on to Arizona ratepayers.

Recent federal tax reform has resulted in big savings to corporations here in Arizona. In fact, that reform lowered the corporate tax rate from 35 to 21 percent leading to significantly lower expenses to utility companies. Olson, who serves on the Arizona Corporation Commission and oversees utility rates, wants to make sure those savings get passed on to you.

APS, Arizona’s largest utility provider, is already moving to lower customer bills by $119 million a year. Overall, that means an average saving to ratepayers of $4.68 per month. That’s a good start but it also means Arizona’s other utility companies must do the same. To make that happen, Commissioner Olson has asked that the full commission review and adjust rates downward for Arizona ratepayers.

Other commissioners are in agreement with Olson and taken steps to have other utility companies pass their tax savings on to you.

On Wednesday, January 31st, Commissioner Olson conducted a workshop to discuss the impact of federal tax reform on Arizona utility rates. A link to that workshop video and agenda can be found here. The video of the workshop is below.

Olson who has been an advocate for taxpayers for many years is leading by example. Arizona was the first to call for utility rate reductions and now other state commissions are following. It’s refreshing to watch conservative leadership remember who ultimately foots the bill and deserves to reap the benefits of tax reductions.

Thank you, Justin Olson, for your leadership and looking ahead for ratepayers.

 

Paul Boyer: Tax reform will help Ariz. small businesses, add jobs

Paul BoyerBy Paul Boyer

2018 is an exciting year for Arizona small businesses, which will be able to take advantage of a new 20 percent tax deduction associated with the recently passed federal tax legislation. These savings will not only benefit state small businesses, but employees, job seekers, and communities as well.

Arizona runs on small business. Our state is home to over 500,000 small businesses (defined by the Small Business Administration as employing 500 or fewer), helping employ nearly one million people. And these numbers are not unique to Arizona. Across the country, small businesses account for over 99 percent of all businesses and a net two-thirds of all new private sector jobs.

But despite the invaluable contribution small businesses had on the economy, for far too long, the structure of the old tax system actively worked against growth, with marginal federal rates reaching 40 percent. This over-taxation put small businesses at an inherent disadvantage.

Under the new tax law, a 20 percent deduction is established for all small business income less than $315,000, and non-professional service business income above that threshold. Roughly 95 percent of small businesses earn less than $315,000, meaning the overwhelming majority will benefit from the full 20 percent deduction.

Consider, for example, how this deduction would help an average Arizona small business earning $200,000 a year. This 20 percent deduction would protect $40,000 from federal taxation, freeing up much-needed resources to create jobs and raise wages. I am already hearing from dozens of businesses around the state about their plans to raise wages, hire employees, and expand with their tax savings.

This excess capital in the private economy will fuel economic growth. Contrary to popular belief, business owners will not simply pocket their tax savings. “They will follow the lead of their big business counterparts, hundreds of which, including AT&T, Comcast, and PNC Bank have used their tax savings to give workers bonuses or raise their wages, creating wealthier and more vibrant communities that touch nearly everyone.

We are even seeing specific examples of these savings here in our home state. Arizona’s largest utility, Arizona Public Service Co, announced its intention to reduce consumer bills, citing the lower corporate tax rate as the driving force behind the decision. These collective cuts could reach nearly $120 million, impacting over 25 million customers.

Arizona Public Service is giving the entirety of their tax cut back to customers. For families on a fixed income, these savings are crucial. They are able to live with a stronger sense of financial security thanks to the recent tax bill.

During my time in the Arizona State Legislature, I’ve encountered businesses longing to share their passions with the world. I witnessed humble business ventures transform into leaders of the Arizona business community. From my experience, a tax cut, like the one recently signed into law, would have done wonders in helping get these businesses off the ground. Now new businesses will finally get the relief they’ve needed for so long.

Tax cuts will give small businesses a lot to look forward to this year, meanwhile all Arizonans will reap the benefits.

Republican Paul Boyer, a high-school literature teacher, is chairman of the Arizona House Education Committee and represents Legislative District 20, based in Phoenix and Glendale. Email him at pboyer@azleg.gov

Ugenti-Rita: Arizona Small Businesses Will Benefit from Tax Bill

Michelle Ugenti-RitaA little over a month ago, President Trump signed the Tax Cuts and Jobs Act into law, and Americans are already feeling better than ever about the state of our economy. In a recent poll from Quinnipiac University, 66 percent of Americans rated the nation’s economy as either “excellent” or “good”—a three percentage point jump since last month.

It’s difficult to not be excited about the impact the tax bill is having on Arizona and its small businesses. The relief could not have come sooner.

Arizona is home to nearly 500,000 small businesses that employ approximately one million people. For too long these entities have struggled under a burdensome tax code that has prevented growth. With the previous federal tax rate approaching 40 percent, small businesses saw much of their hard-earned revenue disappear into the pockets of Uncle Sam.

Fortunately, measures included in the new tax relief package will reduce this burden. The Tax Cuts and Jobs Act created a 20 percent standard deduction that applies to roughly 95 percent of small businesses and eliminates high tax brackets in favor of new, lower ones.

To put the standard deduction in layman’s terms, with the help of the new tax legislation, small businesses earning $200,000 a year are able to shield their first $40,000 of income from taxation. That extra cash can now be funneled into employee bonuses, wage increases, job creation, and business expansion. These measures will further bolster Arizona’s pro-business, pro-growth reputation.

According to a report by BMO Financial Group, Arizona’s business environment is already strong. While most state economies are expected to grow by an average of 2.2 percent, Arizona anticipates 2.8 percent growth in 2018. The tax cuts package will only accelerate that advancement.

In fact, we are already seeing some positive results in the state. Arizona-based YAM Worldwide announced it will be giving out $1.3 million in bonuses to its employees. Furthermore, over 1,000 JPMorgan Chase employees in Arizona will receive wage hikes or bonuses as part of the companies nationwide $20 billion, five-year plan to invest back into the country.

In addition, a report from the nonpartisan Tax Foundation found the bill will create almost 6,500 jobs in the state.

These must be the “crumbs” Nancy Pelosi and the Democrats scoffed at while trying to explain away the benefits resulting from tax relief. For some, these “crumbs” represent eased rent worries, the ability to afford childcare or help with the skyrocketing costs of healthcare.

The examples chronicled above are only a small piece of the benefits the tax bill has induced. Imagine the impacts Arizona will feel a year from now.

Rep. Michelle Ugenti-Rita (R) is the Chair of the Arizona House Ways and Means Committee and represents the 23rd House District

Border Adjustment Tax Could Derail Tax Reform

Americans for Prosperity - Arizona

By: Tom Jenney – Americans for Prosperity, Arizona

One of the most enduring symbols of Arizona is the Grand Canyon.  In fact, many people have nicknamed us the Grand Canyon State.  This most famous of the national parks also illustrates the stakes for Arizonans in the debate that is currently being waged in Washington, D.C. over tax reform.

Let there be no mistake: the so-called Border Adjustment Tax (BAT) would blow a Grand Canyon-sized hole in our economy and the budgets of working families.

In Arizona, the retail industry is a significant source of jobs.  There are more than 64,000 retail businesses that support 828,000 jobs, contributing $53 billion to our economy every year.  If you lined up the workers who are employed because of retail in Arizona shoulder to shoulder, they would span just about the entire length of the Grand Canyon.  That’s a lot of jobs and many of them could be on the chopping block if Speaker Paul Ryan, and U.S. House Ways and Means Chairman Kevin Brady move forward with the BAT.

The BAT is a national sales tax that would raise $1 trillion in new revenue over the next ten years by taxing imports.  Small businesses, particularly retailers would be discriminated against, while big multinational corporations that ship products overseas, would have their exports exempted from federal taxes.  This is a classic example of Washington picking winners and losers among industries, but in this case, it would be middle-income working families who get the shortest end of the stick and pay the ultimate price.

The BAT would drive up the cost of everyday necessities, such as gasoline, groceries, food and clothing, including prescription medicines.  According to the National Retail Federation, the average Arizona family could end up paying more than $1,700 per year in higher prices.  This is a lot of money that struggling, working families, who have seen their wages stagnate in recent years, simply can’t afford to pay.

Fortunately, the BAT is running into a buzz saw of political opposition.  Conservative organizations such as the Club for Growth and Americans for Prosperity have blasted the BAT as being anti-consumer and anti-free market.  Senator Jeff Flake should take note of this opposition and publicly oppose it.  Moreover, Congressman David Schweikert sits on the Ways and Means Committee and should work to keep this tax increase on Arizona families from ever getting out of his committee.

Arizona’s elected leaders could do the vital retail businesses in our state and middle-class families a great service by formally announcing their opposition and driving a nail in the coffin of BAT.  Tax reform is too important to the health of the economy and the pocketbooks of working households for it to be derailed by an exotic, anti-consumer, anti-small business tax.  The BAT is simply bad policy, and it deserves to die an early death, so conservative, free market tax reform can get back on the right track.

It is time to save tax reform, which is badly needed for families and businesses alike in Arizona, by saying no to and killing the BAT.  That is the first step to fairly and equitably lowering the rates for everyone and allow the free market to work.  Conservatives were not elected to Congress to put their thumb on the scale and pick winners and losers, and that is exactly what a trillion-dollar tax increase on Arizona families does in exchange for a permanent tax holiday for multinational companies, many of which already exploit loopholes and receive special deals from lobbyists in Washington.  Senator Flake and Congressman Schweikert, voters sent you to the nation’s capital to fight for their interests and are watching who you stand up for.

Tom Jenney is the State Director of the Arizona Chapter of Americans for Prosperity.