Rick’s Take on Taxes

20 02 2012

 For the issue of taxes, I’ve decided to break that down into 3 parts; what they’ve said, how they’ve voted and what’s their plan!  

Simplify tax code: just 5 deductions; everything else goes

HUNTSMAN: I would have done what Simpson-Bowles recommended. I would have cleaned out all of the loopholes and the deductions that weigh down this country to the tune of $1.1 trillion.

Q: [to Santorum]: How would you raise the kind of revenues called for in the Simpson-Bowles Commission?

SANTORUM: Our plan puts together a package that focuses on simplifying the tax code and I agree with Gov. Huntsman on that. Five deductions: Health care, housing, pensions, children and charities. Everything else goes. We focus on the pillars that have broad consensus of this country in the important sectors of our economy, including our children. The other side is the corporate side. Cut it in half, to 17.5%. But I do something different than anybody else. I’m very worried about a sector of our economy that has been under fire. I come from southwestern Pennsylvania, the heart of the steel country, the heart of manufacturing. And it’s been devastated because we are uncompetitive.

Source: WMUR 2012 GOP New Hampshire debate , Jan 7, 2012

84% of Americans pay more tax if we have national sales tax

Q: Will Cain’s 9-9-9 plan for a national sales tax raise taxes?

SANTORUM: 84% of Americans would pay more taxes under his plan. That’s the analysis. And it makes sense, because when you don’t provide a standard deduction, when you don’t provide anythin for low-income individuals, and you have a sales tax and an income tax and a value-added tax, which is really what his corporate tax is, we’re talking about major increases in taxes on people. He also doesn’t have anything that takes care of the families A single person pays as much in taxes as a man and a woman raising three children. Ever since we’ve had the income tax in America, we’ve always taken advantage of the fact that we want to encourage people to have children and not have to pay more already to raise children, but also gave some breaks for families. He doesn’t do that in this bill. We’ve seen that in Europe. Boom, birth rates went into the basement. I give Cain credit for starting a debate, but it’s not good for families.

Source: GOP 2011 primary debate in Las Vegas , Oct 18, 2011

Changing estate tax would cost $100B, not save $730B

Q: How would you get a balanced budget?

CASEY: When it comes to the budget, what’s missing principally is a lack of fiscal responsibility. [We should] repeal the tax cut for people making over $200,000 a year. That change, in addition to an estate tax change, could get you about $730 billion over 10 years.

Q: How does that balance the current budget?

CASEY: You can’t balance a budget in one year. They’ve put us in such a fiscal hole, it will take many years.

Q: Well, give me a couple ideas.

SANTORUM: Changing the estate tax cut would cost money over the long term, not save money. The death tax snaps back to the old death tax in 2011, and it would cost $100 million just to do the changes that he suggested. I’m for not taking more people’s money when they die.

Source: PA 2006 Senate Debate, Tim Russert moderator (X-ref Casey) , Sep 3, 2006

More child credit for larger families earning over $110,000

We need a tax policy that stops discriminating against families and starts favoring them. That means not only making the repeal of the marriage penalty permanent, but increasing both the child credit and the deduction for children. Even the $1,000 credit and the dependent child deduction offset only a small portion of the costs associated with raising a child today.

That was not always the case. In 1950, before government exploded, the average tax burden on the American family was 2% of its income. Today the burden is 25%, over half of which is Social Security and Medicare taxes. And the burden is often heavier for larger families, because of the phasing out of the child credit for families with a total income of $110,000. Now, before you start complaining about tax breaks for the rich, answer me this: Is a family making $110,000 with one child as well off economically as a family with 8 children at that same salary? Obviously not, but the tax code phases out the child credit all the same.

Source: It Takes A Family, by Sen. Rick Santorum, p. 96 , Apr 30, 2006

Death should not be a taxable event

Death should not be a taxable event, but it is. What we are suggesting is that over a 10-year period of time we phase out estate taxes on people who die. I think most Americans would agree that if someone has a piece of property and they die and pass it on to the next generation, when that next generation sells the property, they should be taxed on the capital gains. But if in fact the person dies, it should not be a taxable event on the next generation. The greatest impact of that is on the family farm or small business–they want to pass that business on to the next generation after they die. They have to sell the farm or the business so they can pay the taxes that are due. Whom does that hurt? Obviously, it hurts the businessperson. But how about the people who work for that business, where that business has to go out of business simply to pay taxes or where the business has to be sold simply to pay taxes. So I think what we are talking about here is tax relief for every taxpayer.

Source: Santorum speech in “A Senator Speaks Out”, p. 18-19 , Feb 14, 2001

Tax burden increases inequities & decreases savings

I want to talk about the tax burden that American families feel today and the drastic need for fundamental and comprehensive reform of our Tax Code. Quite clearly, the tax burden over the past few decades has greatly increased; the inequities of the Code have been exacerbated; and the incentives for savings have largely diminished. I hear the demand for a fairer, simpler tax system and an even greater demand by taxpayers to keep more of what they earn. I strongly believe that Congress must continue to explore comprehensive simplification of our Tax Code. I am pleased today to join Senator Dan Coats as a cosponsor of his legislation to provide not only for middle-class tax relief, but also to encourage increased personal investment and savings while balancing the growth of Federal spending in general.

Source: Santorum speech in “A Senator Speaks Out”, p. 12 , Apr 17, 1996

Tax credits are for families who pay taxes

The Senator from Arkansas said 15 million children are not going to benefit as a result of the child tax credit. What he did not tell you is those 15 million children have parents who pay no income tax. In fact, the majority of those–first, for all of those 15 million children, their parents receive an earned-income tax credit, most of which is not to pay them for the income tax they pay. They paid no income taxes. But it is to pay them for their Social Security taxes that they pay. And in the majority of cases it is to give them money beyond even their Social Security taxes. There is a statistic that, if you listen, on the face you would say, “Boy, this is not fair. We are not helping out the poor folks here in this country who need help.” Wrong. We have the earned-income tax credit that does just that. This is for families who pay taxes. That is what the tax credit is for, for families who pay taxes. I just wanted to set the record straight on that.

Source: Santorum speech in “A Senator Speaks Out”, p. 87 , Nov 15, 1995

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