Extend the 2017 Tax Cuts
If voters sent one clear message in November’s election, it was that the average American is feeling the painful effects of bad economic policies. Economic policy, therefore, should be a priority for President-elect Donald Trump and incoming lawmakers, whether they are Republicans or Democrats. A clear place to begin is the extension of Trump’s signature 2017 tax law, the Tax Cuts and Jobs Act (TCJA). Congress should extend, or even lower, the provisions that helped ordinary Americans and, crucially, the 21 percent corporate income tax rate. Extending the TCJA will likely prove more straightforward than the original passage of the bill, because the kinks have largely been worked out. When Trump signed the TCJA into law in December 2017, it followed months (or years) of debates the law’s provisions. This time around, while few improvements are needed, the general structure of the needed tax reform is rock solid.
Lowering the corporate tax rate to 21 percent in 2017 enabled the private businesses to better innovate and provide jobs to many Americans. Increasing the corporate tax rate would punish entrepreneurship, the engine of any vibrant economy. Moreover, a corporate rate cut would especially help small businesses. Small businesses require substantial capital to invest in their workforce, technology, and infrastructure — key components of sustainable growth. They also often need access to funding much more quickly than a large company would, meaning every dollar in the bank counts. With lower tax rates, companies could retain more of their earnings, which they can then reinvest into expanding operations or employee benefits, such as professional development or higher wages. This kind of reinvestment boosts productivity and improves employee satisfaction and retention rates. Coupling a reduced corporate tax rate with robust investment policies like a renewed Research & Development (R&D) tax
credit could turn America’s economy into a veritable powerhouse. This would not only benefit companies but raise wages. The R&D provision, which was a crucial part of the TCJA, has incentivized companies to invest in new technologies that drive progress across industries. By strengthening this provision alongside a lower corporate tax rate, businesses would have greater financial flexibility to pursue cutting-edge research initiatives without being constrained by funds shortages.
This tax-cutting approach aligns with global economic trends and addresses several critical factors that influence business growth and competitiveness. For example, reducing the corporate tax rate would enhance the United States’ competitive position against China. According to data from the OECD, many countries have been progressively lowering their corporate tax rates to attract foreign investment and stimulate domestic economic activity. This strategy is far preferable to subsidization and industrial policy, which tend to distort markets and allocate resources inefficiently. The current average corporate tax rate among OECD countries is approximately 23 percent. Washington should join in on this trend and ensure U.S. rate sit considerably lower than other countries’, which will attract businesses and investment.
The American people gave Congress a mandate to provide tax relief for individuals, families, and businesses. Republican and Democratic lawmakers alike should be ready to partner with President-elect Trump to enact reforms that recapture the success of the 2017 tax provisions. The TJCA helped bring about a red-hot economy during Trump’s first term, and extending it would do the same in his second.
Tech’s Energy Abundance
Today’s economy is characterized for being increasingly reliant on digital tools and technology. The good news is that there are no signs that the trend is going to reverse anytime soon. The next wave of tech products has the possibility to digitize even more parts of day-to-day life. From artificial intelligence (AI), telehealth services, immersive technologies, robots, to electric vehicles (EV), consumer goods are more dependent on computing power to operate. To be able to power that computing capacity, these devices will need more energy over time because they won’t be only required to power themselves, but also create a stable flow of energy to collect and process data in real time. If America wants to remain competitive for the years to come, it will need to produce and distribute as much energy as possible to keep up with this rising demand. Tech companies like Amazon, Apple, Google, and Microsoft are addressing their energy needs by building their own energy sources rather than
relying on the government. There are no low-energy/high-income economies in the world. The relationship is rather straightforward. When incomes rise, the demand for energy and energy-intensive devices increases, as people can afford it. The rapid expansion of energy-intensive consumer products like AI or EVs has caused a sharp increase in energy demand in the United States. This has strained the nation’s power grid, which has struggled to keep up with said demand. Thus, policymakers and academia have been scratching their heads looking for solutions to this problem. The Biden administration has (rather ineffectively) pushed to lower demand by establishing energy efficiency mandates that would lower the energy demand for various appliances. "Degrowth" activists have called for slowing down the economy and AI deployment in order to reduce energy consumption. This line of thought has sparked regulation against basic technology infrastructure, such as data centers.
Lowering energy demand will be impossible to do without sacrificing the economic welfare of Americans. Consumers should not have to choose between having access to affordable energy prices or compromising their livelihood. There is no need when options for increasing energy supply are readily available or being implemented as we speak. The private sector has taken a forward charge for this energy abundant future. For example, Amazon, Apple, Google, and Microsoft have invested billions of dollars in either reactivating or building new nuclear power plants. Some of them have also invested in the development of self-powered data centers, oftentimes using renewable energy systems. While these companies are often targeted by environmentalist groups as energy consumers and pollutants, they are fueling the charge for a low or no-emission energy future through economically-sound investments. Unlike the government’s misguided approach of constricting energy supply by using regulation and red tape to
shut fossil fuels out of the power grid, these investments will build on existing energy capacity and expand Americans access to energy while lowering their carbon footprint.
The rising popularity of energy intensive products (like AI, EVs, or robots) means that America’s demand for energy is unlikely to go down anytime soon. Thus, the administration’s current approach of trying to stymie energy demand or choke fossil fuel production is unlikely to yield any results. Policymakers should prioritize a paradigm of supply maximization to satisfy energy demands and provide relief to an already stressed-out energy grid. The private sector is playing a significant role by investing in additional energy production with clean energies like renewables and nuclear, but they're battling against a sea of red tape that makes these projects costlier and slower. Taking down regulatory chokepoints will be vital if America wants to secure a stable energy supply chain that can power up the next tech-fueled economic revolution.
Blogs:
Monday: Gallatin County Risks Credit Rating to Support Struggling Fiber Project ([link removed])
Tuesday: Reconfirming NLRB Chair Would be a Loss for Workers Nationwide ([link removed])
Wednesday: TPA Celebrates the Approval of a Second Term for Isabel Cumming as Baltimore City Inspector General ([link removed])
Thursday: The Last Gasps of Bidenomics ([link removed])
Friday: Why We Need Free Trade: An Interview with Samuel Gregg ([link removed])
Media:
December 5, 2024: WBFF Fox45 (Baltimore, Md.) quoted me for their article, “ Baltimore group pushes for fair wage law to boost earnings for tipped restaurant workers.”
December 5, 2024: WBFF Fox45 (Baltimore, Md.) interviewed me for their story on Baltimore City’s renaissance being questioned as businesses shutter amid crime concerns.
December 5, 2024: The Herald-Review (Sierra Vista, Ariz.) ran TPA’s op-ed, “The Postal Service is beyond the President’s help.”
December 5, 2024: WBFF Fox45 (Baltimore, Md.) interviewed me for their story on Baltimore City’s ARPA dollars running out.
December 6, 2024: The Prescott eNews (Prescott, Ariz.) quoted TPA in their article, “With DOGE, Musk, Ramaswamy Confront the ‘Immovable Object’.”
December 6, 2024: WBFF Fox45 (Baltimore, Md.) interviewed me for their story on transparency concerns with the Baltimore Children and Youth Fund.
December 8, 2024: WBFF Fox45 (Baltimore, Md.) interviewed me for their story on Baltimore City’s ARPA dollars running out.
December 9, 2024: WBFF Fox45 (Baltimore, Md.) quoted me for their article, “Maryland legislature prepares to address fiscal challenges in upcoming session.”
December 9, 2024: RealClear Markets ran TPA’s op-ed, “A Case for Extending the 2017 Tax Cuts.”
December 9, 2024: WBFF Fox45 (Baltimore, Md.) interviewed me for their story on Maryland and Baltimore City’s fiscal questions going into the new year.
December 9, 2024: NewsMax ran TPA’s op-ed, “America’s Tech-Driven Economic Future Tied to Energy Abundance.”
December 9, 2024: Our Community Now quoted TPA for their article, “Maryland legislature prepares to address fiscal challenges in upcoming session.”
December 10, 2024: WJAG 780AM News Talk (Norfolk, Va.) quoted me in their article, “Conservative groups praise Rocket’s suit against HUD.”
December 10, 2024: Money 105.5 (California) quoted TPA in their article, “Conservative groups praise Rocket’s suit against HUD.”
December 10, 2024: KTBS TV3 (Shreveport, La.) quoted TPA in their article, “Conservative groups praise Rocket’s suit against HUD.”
December 10, 2024: The Indiana Statesman (Terre Haute, Ind.) quoted TPA in their article, “Conservative groups praise Rocket’s suit against HUD.”
December 10, 2024: Appalachian News Express (Pikeville, Ky.) quoted TPA in their article, “Conservative groups praise Rocket’s suit against HUD.”
December 10, 2024: Albia Newspapers (Albia, Iowa) quoted TPA in their article, “Conservative groups praise Rocket’s suit against HUD.”
December 10, 2024: Iosco County News-Herald (East Tawas, Mich.) quoted TPA in their article, “Conservative groups praise Rocket’s suit against HUD.”
December 10, 2024: Atlantic News Telegraph (Atlantic, Iowa) quoted TPA in their article, “Conservative groups praise Rocket’s suit against HUD.”
December 10, 2024: Breeze (Harrisonburg, Va.) quoted TPA in their article, “Conservative groups praise Rocket’s suit against HUD.”
December 10, 2024: Livermore Independent (Oakland, Calif.) quoted TPA in their article, “Conservative groups praise Rocket’s suit against HUD.”
December 10, 2024: Wellsboro Gazette (Wellsboro, Pa.) quoted TPA in their article, “Conservative groups praise Rocket’s suit against HUD.”
December 10, 2024: Douglas Budget (Douglas, Wy.) quoted TPA in their article, “Conservative groups praise Rocket’s suit against HUD.”
December 10, 2024: Inside Nova (Manassas, Va.) quoted TPA in their article, “Conservative groups praise Rocket’s suit against HUD.”
December 10, 2024: The Corydon Times Republican (Corydon, Iowa) quoted me in their article, “Conservative groups praise Rocket’s suit against HUD.”
December 10, 2024: Doniphan Herald (Doniphan, Neb.) quoted TPA in their article, “Conservative groups praise Rocket’s suit against HUD.”
December 10, 2024: WTNZ Fox43 (Knoxville, Tenn.) quoted TPA in their article, “Conservative groups praise Rocket’s suit against HUD.”
December 10, 2024: The FairfieldSunTimes.com ([link removed]) (Fairfield, MT) quoted TPA in their article, “Conservative groups praise Rocket’s suit against HUD.”
December 10, 2024: The Sierra County Sentinel (Consequences, N.M.) quoted TPA in their article, “Conservative groups praise Rocket’s suit against HUD.”
December 10, 2024: WFMZ-TV Online (Allentown, Pa.) quoted TPA in their article, “Conservative groups praise Rocket’s suit against HUD.”
December 10, 2024: The Daily Gazette (Schenectady, N.Y.) quoted TPA in their article, “Conservative groups praise Rocket’s suit against HUD.”
December 10, 2024: Selma Sun (Selma, Ala.) quoted TPA in their article, “Conservative groups praise Rocket’s suit against HUD.”
December 10, 2024: Newsbug.Info (Watseka, Ill.) quoted TPA in their article, “Conservative groups praise Rocket’s suit against HUD.”
December 11, 2024: WBFF Fox45 (Baltimore, Md.) quoted TPA in their article, “Meet the liberal megadonors funding Baltimore non-profits through fiscal sponsors.”
December 11, 2024: Catalyst ran TPA’s op-ed, “Private Investment, Not Government Spending, is Closing the Digital Divide.”
December 11, 2024: RealClear Markets ran TPA’s op-ed, “The CFPB’s Data Broker Rule Just Begs for DOGE Analysis.”
December 11, 2024: Citizens News Online quoted TPA in their story on DOGE.
December 11, 2024: The Baltimore Sun (Baltimore, Md.) quoted TPA in their article, “Meet the liberal megadonors funding Baltimore non-profits through fiscal sponsors.”
December 12, 2024: WBOB-AM Salem Radio Network (Jacksonville, FL) interviewed me for their story on worker freedom.
December 12, 2024: WBFF Fox45 (Baltimore, Md.) interviewed me for their story on Nick Mosby giving away $1 million to nonprofits and political allies.
Have a great weekend!
Best,
David Williams
President
Taxpayers Protection Alliance
1101 14th Street, NW
Suite 500
Washington, D.C. xxxxxx
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