The 118th Congress came into session at a pivotal and perilous time. The Taxpayers Protection Alliance is proud to offer the 2023 Roadmap to Fiscal Sanity which provides a blueprint for reform for the 118th Congress. Areas covered by this year’s edition include, antitrust, budget reform and earmarks, climate disclosure, defense, the economy and inflation, energy, tobacco harm reduction, healthcare, intellectual property, international issues, IRS reform, labor and minimum wage, NASA, privacy, Section 230, tax reform, telecommunications and broadband, trade and tariffs, and postal issues. The 118th Congress can deliver significant, overdue reforms with historic implications for the American people. This week’s Weekly Update will highlight a handful of the issues outlined in the publication. Click here for the full publication.
Roadmap to Fiscal Sanity
Antitrust
All members of Congress need to commit to a return to the consumer welfare standard on antitrust. Congress should implement clear Federal Trade Commission and Department of Justice oversight to ensure that those agencies are adhering to that standard and not initiating lawsuits based on personal or political vendettas. Any action should be done in the interests of consumers. Congress should oppose legislation that incentivizes cartelization in the marketplace – an actual anticompetitive practice – like the Journalism Competition and Preservation Act being considered by many members. Congress must also be wary of legislation making sweeping additions to what can be considered anticompetitive, potentially threatening national security.
Budget Reform
Congress should move away from the “pay-as-you-go” (PAYGO) system, which requires mandatory spending increases to be offset with either an equal decrease in mandatory spending or an increase in revenue. Instead, Congress should employ a “cut-as-you-go” (CUTGO) model, which still requires increases in mandatory spending to be offset with decreases in mandatory spending but removes the provision that allows them to be paid for with revenue increases. This would restrict Congress’ ability to rapidly grow the size and scope of the federal government. It should also remove the ability to waive budgetary requirements. To promote long-term fiscal planning and responsibility, Congress could employ a biennial budgetary model, where budgets are completed for two-year periods instead of annually. Further, Congress could expand the current 10-year projections to require the budgetary effects of authorizing measures to span 15-year or 20- year estimates. This would provide current and future lawmakers with greater information about the long-term fiscal effects of their proposals. Finally, Congress must take swift action to reinstitute the ban on earmarks. These policy changes would ensure that taxpayer dollars are protected from the irresponsible spending habits of past and future Congresses.
Food and Drug Administration
The FDA should liberalize its food evaluation process while ensuring a safe food supply bolstered by the latest technology. This would entail working closely with companies to keep harmful pathogens at bay via cost-effective approaches such as irradiation and phage treatment. The agency must also look at ways to mitigate issues that arise from shortages, often caused by the regulatory processes related to the introduction and marketing of products. The FDA must also embrace reforms in the tobacco harm-reduction space. It is critical that the agency enables adults to have access to safer alternatives to combustible cigarettes. The FDA must eliminate the many barriers impeding harm reduction products to improve public health and prevent youth use of age-restricted products. Finally, the agency should strive to improve its drug approval process. Welcome reforms would include allowing more external control data and relaxing existing statistical thresholds for approval. If a medication designed to treat a life-threatening illness has been shown to be safe but data on effectiveness is approaching statistical significance (e.g., p-value of .07), then the FDA should approve the medication and closely monitor the drug post-approval.
IRS Reform
Congress must rescind the $80 billion in funding authorized by the Inflation Reduction Act (IRA) and instead prioritize providing taxpayers with the security and service they deserve. The 118th Congress should also remove the tax code changes made by the IRA, which the Joint Committee on Taxation (JCT) has shown will increase the average tax burden for every American making more than $30,000. Congress should address the IRS’s longstanding, onerous culture of targeting low and middle-income taxpayers with audits. Congress must also reject any proposal that would give the IRS the power or authority to do its own tax prep. Several such proposals have found their way to the floors of Congress in the past few years. The IRS has no incentive to find Americans the savings or exemptions that would maximize their returns. And, in the event of a dispute, the burden of proof would shift to the taxpayer to demonstrate harm. This is just another way the IRS can take advantage of everyday Americans with no access to high powered legal teams. There should also be meaningful oversight of the way the IRS handles sensitive information. With the leaks of private taxpayer data and a report showing the IRS does not properly dispose of old information, the American people are at risk. Congress must hold the agency accountable and initiate hearings with witnesses about what is being done to address these concerns.
United States Postal Service (USPS)
Lawmakers must work with agency leadership to enact real reforms at the USPS. An ambitious consolidation campaign could target underwater post offices for closure while ensuring consumer access to nearby remaining post offices. Congress should audit postal finances and identify business lines that are either losing money or priced out of lockstep with operating costs. Lawmakers should also push the USPS to revamp their hiring policies and emphasize truly temporary positions that need not be converted to full-time roles. These reforms could save taxpayers and consumers significant resources and mitigate the risk of a taxpayer bailout.
Tax Reform
Lawmakers must act swiftly to make multiple expiring provisions of the Tax Cuts and Jobs Act (TCJA) permanent. Setting bonus depreciation at 100 percent and keeping interest expense deductions at 30 percent of EBITDA are critical to maintain a competitive tax code and avoid economic backsliding. Additionally, Congress should consider how to expand on the promise of tax reform by further reducing rates and simplifying the tax code. This can include further increasing the standard deduction and boosting contribution limits for tax-free savings vehicles such as Health Savings Accounts. Lawmakers should repeal the provisions of the IRA that negatively impact businesses and taxpayers. Eliminating the 15 percent book tax will help U.S. companies prosper Instead, Congress should seek to reduce business tax rates, which would allow companies to lower costs, expand hiring, and ward off an economic downturn.
BLOGS:
Monday:
Bill of the Month: Identifying and Eliminating Wasteful Programs Act
Tuesday:
Analyzing Bad Software Contracts Can Deliver Savings and a Bipartisan Win
Wednesday:
Taxpayers Protection Alliance Releases its 2023 Issues Briefs: Roadmap to Fiscal Sanity
Friday:
Parroting Vaping Opponents, FDA is Putting Alarmism Over Science
MEDIA:
March 17, 2023: WBFF Fox45 (Baltimore, Md.) quoted TPA in their story, “How is Baltimore City spending your tax dollars?”
March 20, 2023: WBFF Fox45 (Baltimore, Md.) interviewed me about Baltimore being named one of the worst run cities in America.
March 21, 2023: The New York Sun mentioned TPA in their story, “Norfolk Southern CEO To Face Rare Bipartisan Heat From Congress Over Ohio Train Derailment.”
March 22, 2023: RealClearEducation ran TPA’s op-ed, “Department of Education Guidance Would Make Online Learning More Costly.”
March 22, 2023: The Center Square ran TPA’s op-ed, “Expect two Chicago guaranteed basic income pilot programs to fail.”
March 23, 2023: The Odessa American (Odessa, Tx.) ran TPA’s op-ed, “White House’s crystal ball gazing doesn’t help.”
March 23, 2023: WBFF Fox45 (Baltimore, Md.) interviewed me about outdated computer systems at the IRS.
March 23, 2023: I appeared on WBOB 600 AM (Jacksonville, Fla.) to talk about strengthening Social Security and Medicare.
March 23, 2023: Patrick Hedger joined ‘Rush to Reason’ on KLZ Radio (Denver, Co.) to discuss TPA’s newly released issue briefs for the 118th Congress.
March 23, 2023: WBFF Fox45 (Baltimore, Md.) quoted TPA in their story, “Questions remain over City Council President Mosby's Fund.”
March 24, 2023: Patrick Hedger joined ‘The Schilling Show’ on News Radio WINA (Charlottesville, Va.) to discuss TPA’s newly release issue briefs for the 118th Congress.
March 24, 2023: The Tennessee Star ran TPA's op-ed, "Cleveland Utilities’ Plan for Its Own Broadband System Is a Bad Bet for Local Taxpayers."
Have a great weekend!
Best,
