National Fiscal Policy
A Common-Sense Path to Fiscal Responsibility

IExecutive Summary

John Vincent's fiscal plan is built on a simple premise that most Americans — Republican, Democrat, and Independent — agree on: the federal government should not spend more than it takes in, the tax code should be fair, and every policy decision should be measured by whether it makes life better for working families. This is not ideology. It is common sense.

IIFiscal Philosophy

The United States has not maintained a balanced federal budget since the Clinton administration (1998–2001), when a combination of modest tax increases on the wealthiest Americans, disciplined spending, and a strong economy produced four consecutive years of budget surpluses. The federal debt held by the public fell from 47% of GDP in 1994 to 31% in 2001.

Since 2001, every administration has run deficits, regardless of party. The debt has grown from $5.8 trillion in 2001 to over $36 trillion today. Debt held by the public now exceeds 100% of GDP — a level historically associated with economic stagnation and reduced fiscal flexibility. The Congressional Budget Office projects that under current policy, debt will reach 166% of GDP by 2054.

Why This Matters for SC-7

South Carolina's 7th District has a median household income of $52,389 — significantly below the national median of $74,580. The district's residents depend on Social Security ($5.2 billion annually to 127,000 beneficiaries), Medicare, and Medicaid more than most Americans. When the federal government runs massive deficits, it puts these programs at risk and shifts costs to future generations — including the children and grandchildren of SC-7 families.

The Fiscal Responsibility Act of 2023 raised the debt ceiling but did little to address the structural imbalance. With annual deficits now exceeding $1.8 trillion and interest on the debt consuming nearly $1 trillion per year, the path is unsustainable. John Vincent's plan offers a credible alternative.

IIIThe TCJA Problem

The Tax Cuts and Jobs Act of 2017 (TCJA) was sold as a middle-class tax cut that would "pay for itself" through economic growth. Seven years later, the evidence is clear: the benefits flowed overwhelmingly to corporations and the wealthiest Americans, while the costs were passed to future generations.

What the TCJA Actually Did

Corporate Tax Cuts: Reduced the corporate tax rate from 35% to 21%, costing approximately $1.3 trillion over 10 years. Corporations used most of these savings for stock buybacks and dividends rather than wage increases or job creation. In 2018, corporations spent a record $1 trillion on stock buybacks — a 64% increase from 2017.

Estate Tax Cut: Doubled the estate tax exemption from $11.2 million to $22.4 million per couple, benefiting only the wealthiest 0.1% of estates. The Big Beautiful Bill further increased this to $15 million per individual ($30 million per couple), at a 10-year cost of $150–200 billion.

Pass-Through Deduction: Created a 20% deduction for pass-through business income (Section 199A), which primarily benefits high-income business owners and adds $415 billion to the deficit over 10 years.

Individual Tax Cuts: Modest middle-class tax cuts were temporary (expiring after 2025), while corporate cuts were made permanent. The average middle-class family received approximately $1,000 per year, while the top 0.1% received an average tax cut of $193,000 annually.

Impact on SC-7 Families

For SC-7 families, the TCJA's promises proved hollow. While the district's median household income is $52,389, the average tax cut for households in the bottom 80% was approximately $800 per year — barely noticeable after inflation. Meanwhile, the deficit spending required to finance these tax cuts threatens the Social Security and Medicare benefits that 127,000 SC-7 seniors depend on.

IVTariffs & Trade Policy

The tariff policies of 2025–2026 represent one of the most dramatic disruptions to American trade in nearly a century. Before the Supreme Court struck down the bulk of President Trump's global tariffs in a landmark 6-3 decision on February 20, 2026, the average effective tariff rate had reached 16.9% — the highest level since 1932. According to the Tax Foundation, tariffs increased the average American household's annual costs by $1,000 in 2025, with projected increases of $1,300 in 2026. Yale University's Budget Lab found the cost for lower-income households could reach $964 annually.

Almost immediately after the Supreme Court ruling, President Trump announced new 10% tariffs authorized under different legislation — Section 122 of the Trade Act — rather than IEEPA. Importantly, while the Court's ruling struck down the legal basis for the initial tariffs, it does not reverse the fundamental changes to global trade relationships that have already occurred. Other countries made lasting adjustments in response to American tariff policy — shifts that cannot be undone by a court ruling. For example, China has now entered into long-term trade agreements with Argentina and Brazil for soybean imports, making it difficult to determine how much of the lost Chinese soybean market will be restored to American farmers even with the initial tariffs lifted. The damage to established trade relationships may prove permanent.

Impact on SC-7

South Carolina's 7th District is heavily exposed to trade disruption. The district's agricultural sector, centered in the Pee Dee region, produces soybeans, corn, cotton, and wheat — all crops that depend on export markets. China alone accounted for $272 million in SC-7 goods exports in 2024, supporting an estimated 1,620 jobs. The 12% decline in SC-7 exports to China from 2023 to 2024 reflects the early impact of trade tensions.

Vincent's Trade Policy Priorities

1. Strategic Trade Agreements: Pursue targeted trade agreements that open markets for SC-7 agricultural and manufacturing products, rather than across-the-board tariffs that raise consumer prices and invite retaliation.
2. Trade Adjustment Assistance: Strengthen TAA programs for workers and communities affected by trade disruption, including job training, wage insurance, and community development grants.
3. Agricultural Export Promotion: Increase funding for USDA export promotion programs that help SC-7 farmers find new markets for their products.
4. Enforce Trade Laws: Aggressively enforce existing trade laws against unfair practices like dumping and intellectual property theft, rather than relying on blanket tariffs.

VHousing

The housing affordability crisis has hit SC-7 families hard. Since 2020, home prices in the district have increased by 35–45%, while median rents have risen 25–30%. For a district where the median household income is $52,389, these increases have pushed homeownership out of reach for many families and strained the budgets of renters.

The Scale of the Crisis

In Horry County, the median home price reached $375,000 in 2025 — requiring an income of approximately $95,000 to afford a mortgage with 20% down. For a district where the median income is $52,389, this represents a severe affordability gap. In rural areas of the district, home prices are lower but incomes are also lower, and the inventory of available homes has shrunk dramatically.

Rental costs have followed a similar trajectory. The average two-bedroom apartment in Myrtle Beach now rents for $1,400–1,600 per month, requiring an income of $56,000–64,000 to be affordable under the 30% standard. For service workers, retirees on fixed incomes, and young families, these costs are increasingly unsustainable.

Vincent's Housing Priorities

1. Increase Supply: Support the Neighborhood Homes Investment Act and LIHTC expansion to add 200,000+ affordable units nationally, with proportional benefits for SC-7 communities.
2. Down Payment Assistance: Expand HUD's HOME Investment Partnerships program to provide down payment and closing cost assistance for first-time homebuyers in high-cost markets.
3. Rural Housing: Increase USDA Section 502 direct loan funding for rural home purchases and Section 515 multifamily housing preservation.
4. Protect Renters: Support the Eviction Crisis Act to provide emergency rental assistance and legal representation for tenants facing eviction.

VIPrescription Drug Pricing

The Inflation Reduction Act of 2022 gave Medicare the power to negotiate drug prices for the first time, capped insulin at $35/month for seniors, and limited out-of-pocket drug costs to $2,000 per year. These reforms are projected to save seniors $1,500–2,000 annually and reduce federal spending by $98 billion over 10 years. The Big Beautiful Bill rolled back several of these protections.

Key Provisions at Risk

The Big Beautiful Bill weakened Medicare's ability to negotiate drug prices by broadening the orphan drug exclusion, which exempts drugs for rare diseases from negotiation. This provision was exploited by pharmaceutical companies to shield high-revenue drugs from price negotiation.

Impact on SC-7 Seniors

SC-7 has 127,000 Social Security beneficiaries and approximately 95,000 Medicare beneficiaries. For these seniors, drug pricing reforms are not abstract policy debates — they directly affect monthly budgets and health outcomes. The insulin cap alone benefits an estimated 15,000 SC-7 seniors with diabetes. The out-of-pocket cap protects seniors with chronic conditions from catastrophic drug costs.

Vincent's Drug Pricing Priorities

1. Protect IRA Reforms: Defend Medicare negotiation authority, the insulin cap, and the out-of-pocket maximum from any efforts to weaken or repeal them.
2. Expand Negotiation: Support legislation to accelerate Medicare negotiation to more drugs and extend negotiated prices to private insurance.
3. Insulin for All: Extend the $35/month insulin cap to all Americans with diabetes, not just Medicare beneficiaries.
4. Price Transparency: Require pharmaceutical companies to disclose R&D costs, marketing expenses, and profit margins for drugs priced above $10,000 per year.

VIIRevenue Reform

John Vincent's revenue plan is designed to restore fairness to the tax code while raising the revenue needed to reduce the deficit and protect essential programs. The plan draws on the Clinton-era precedent: modest increases on the wealthiest Americans combined with corporate tax reform can fund priorities while supporting economic growth.

Individual Tax Reforms

Corporate Tax Reforms

The 2017 corporate tax cut reduced the rate from 35% to 21% without closing significant loopholes. The result: corporations saved $1.3 trillion while many profitable companies paid zero federal tax. Vincent's plan would raise the corporate rate to 28% (still below the pre-TCJA rate) and close loopholes that allow profit-shifting to tax havens.

Tax Gap & Enforcement

Fully fund the IRS to close the estimated $696 billion annual "tax gap" — the difference between taxes owed and taxes actually collected. IRS Commissioner data shows that every $1 invested in enforcement returns $5–12 in collected revenue. The IRA allocated $80 billion for IRS modernization; Russell Fry co-sponsored H.R. 23 to block this funding.

VIIIAgricultural Policy

SC-7 accounts for 17% of South Carolina's total agricultural sales. The district's top crops by acreage — soybeans (170,370), corn (98,282), cotton (80,385), and wheat (42,822) — are all heavily exposed to trade disruptions and climate variability. Major livestock includes turkeys (570,632 birds), hogs (86,562 head), and cattle (23,061 head). Forty-three percent of SC-7's producers are over 65, raising urgent questions about generational farm transition.

Vincent's Farm Bill Priorities

1. Robust Crop Insurance: Protect and expand revenue protection, supplemental coverage, and specialty crop insurance for SC-7's diverse agriculture — with timely congressional action to prevent planning uncertainty.
2. Keep SNAP in the Farm Bill: Maintain the link between agricultural policy and food security — critical for SC-7 where many depend on SNAP benefits.
3. Conservation Programs: Increase EQIP and CSP funding to help farmers implement climate-smart practices while maintaining productivity.
4. Young Farmer Support: Expand beginning farmer loans, down payment assistance, and training programs to address the generational transition challenge.

IXEducation & Workforce

Education is the foundation of economic opportunity. For SC-7, investing in education means preparing the next generation for the jobs of the future while providing pathways to the middle class for workers seeking new skills. The district faces significant challenges: only 22% of adults 25+ have a bachelor's degree or higher, compared to 35% nationally.

The Challenge

SC-7 includes Coastal Carolina University, Francis Marion University, and Horry-Georgetown Technical College, but many district residents lack access to affordable higher education and job training. The average student loan debt for South Carolina graduates is $31,000, and the state ranks near the bottom in teacher pay and per-pupil spending.

Vincent's Education Priorities

1. Doubling the Pell Grant: Increase the maximum Pell Grant to $13,000, restoring its purchasing power and opening college doors for low-income SC-7 students.
2. Student Loan Reform: Protect and strengthen Income-Driven Repayment plans; support bankruptcy reform to allow discharge of student loans in extreme cases.
3. Workforce Development: Increase funding for Perkins Career and Technical Education programs and expand apprenticeship opportunities in high-demand fields.
4. Teacher Pipeline: Support loan forgiveness and scholarship programs for teachers who commit to working in underserved rural and urban schools.

XSpending Priorities

Responsible budgeting requires both raising revenue and setting priorities. John Vincent's plan protects programs that matter most to SC-7 families while identifying savings from waste, fraud, and inefficiency.

Protected Programs

Savings & Efficiency

XIEnergy & Carbon Policy

The Inflation Reduction Act represented the most significant climate investment in American history, with tax credits for clean energy deployment, electric vehicles, and home energy efficiency. The Big Beautiful Bill rolled back many of these provisions, reducing consumer savings and slowing the transition to cleaner energy.

Vincent's Energy Priorities

1. Protect IRA Clean Energy Credits: Defend tax credits for solar, wind, EVs, and home efficiency that save SC-7 families money and create jobs.
2. All-of-the-Above Energy Strategy: Support responsible domestic energy production while accelerating the transition to cleaner sources.
3. Grid Modernization: Invest in transmission infrastructure to bring affordable clean energy to market and improve reliability.
4. Rural Broadband & Energy: Coordinate rural electrification programs with broadband expansion to bridge the digital divide.

XIIChildcare & Family Support

Childcare is one of the largest expenses for working families in SC-7, often exceeding the cost of housing or college tuition. The average annual cost of infant care in South Carolina is $9,600 — more than in-state tuition at USC ($12,600 over four years, or $3,150 per year). For a family earning the district median of $52,389, infant care consumes nearly 20% of household income.

The Economic Impact

High childcare costs don't just strain family budgets — they keep parents, especially mothers, out of the workforce. An estimated 2 million women left the workforce during the pandemic, and many have not returned due to childcare costs. For SC-7 employers, this means a smaller labor pool and higher turnover.

Vincent's Childcare Priorities

1. Expand Child Tax Credit: Restore the expanded CTC from the American Rescue Plan, which cut child poverty by 40% in six months.
2. Childcare Subsidies: Increase funding for Child Care Development Block Grants to help working families afford quality care.
3. Universal Pre-K: Support federal-state partnerships to provide universal pre-kindergarten for all 4-year-olds.
4. Caregiver Pay: Support initiatives to increase wages and benefits for early childhood educators, who earn an average of $12.24/hour.

XIIIDigital Assets & Cryptocurrency

The rapid growth of cryptocurrency and digital assets presents both opportunities and risks. John Vincent supports a balanced regulatory framework that protects consumers and investors while allowing innovation to flourish. The lack of clear rules has led to fraud, market manipulation, and consumer losses — while regulatory uncertainty has pushed innovation overseas.

Key Issues

Vincent's Digital Assets Priorities

1. Clear Regulatory Framework: Support legislation establishing clear jurisdictional boundaries between the SEC and CFTC for digital asset oversight.
2. Consumer Protections: Require exchanges to implement strong security measures, segregation of customer assets, and insurance against losses.
3. Anti-Money Laundering: Ensure robust AML/KYC requirements for cryptocurrency platforms to prevent illicit finance.
4. Stablecoin Regulation: Require stablecoin issuers to maintain adequate reserves and submit to regular audits.

XIVThe Deficit Reduction Path

John Vincent's fiscal plan would reduce the deficit by $200–300 billion per year through a combination of revenue increases and spending discipline. Over 10 years, this would reduce debt held by the public by $6.2–8.8 trillion relative to current projections, putting the debt on a declining path as a share of GDP.

XVCriticisms & Responses

Any comprehensive fiscal plan will face criticism. Here are the most common objections and John Vincent's responses:

"Tax increases will hurt the economy."

Response: The Clinton administration raised the top rate to 39.6% and the economy added 22.7 million jobs. The Reagan administration raised taxes multiple times after the initial 1981 cuts. Economic growth depends on many factors beyond tax rates, including education, infrastructure, and rule of law. Tax cuts for the wealthy, by contrast, have not delivered the promised growth — the TCJA produced slower growth than the Obama administration's final years.

"We can't afford new spending."

Response: The choice is not between spending and not spending. The choice is between productive investments that grow the economy (education, infrastructure, childcare) and unproductive spending (interest on debt, tax cuts for those who don't need them). The OBBB added $3–5 trillion to the debt while cutting programs that benefit working families. Vincent's plan redirects resources toward priorities that benefit SC-7.

"Social Security and Medicare are going bankrupt."

Response: Both programs face long-term financing challenges, but "bankrupt" is the wrong word. Social Security can pay full benefits until 2035, after which it would still pay approximately 80% of promised benefits. The solution is not benefit cuts but rather modest revenue increases, such as lifting the cap on payroll taxes for incomes above $400,000. Medicare solvency can be extended through drug price negotiation and efficiency improvements.

"This is just more government."

Response: Government is not the solution to every problem, but it is the right tool for some. Private markets cannot provide public goods like clean air, safe food, and national defense. They cannot provide universal education or guarantee retirement security. The question is not whether government should exist, but whether it should work for ordinary Americans or for special interests. Vincent's plan puts working families first.

XVIImplementation Roadmap

A fiscal plan is only as good as its implementation. Here is how John Vincent would work to enact these policies:

Year One

• Cosponsor legislation to protect IRA drug pricing provisions and IRS enforcement funding
• Support legislation extending Social Security solvency by lifting payroll tax cap
• Introduce legislation to protect SC-7 farmers from tariff damage and trade disruption
• Advocate for housing and childcare investments in appropriations process

Years Two–Four

• Work across the aisle on comprehensive tax reform that raises revenue and simplifies the code
• Push for deficit reduction targets in budget resolutions
• Support Farm Bill that includes robust crop insurance and SNAP protection
• Advocate for education and workforce investments in Higher Education Act reauthorization

Long-Term

• Build coalitions for comprehensive fiscal reform modeled on the Simpson-Bowles framework
• Support balanced budget amendment with reasonable exceptions for emergencies
• Advocate for infrastructure, education, and research investments that grow the economy
• Protect Social Security, Medicare, and SNAP for future generations

XVIIVincent vs. Fry: The Choice for SC-7