During my service in Congress, I have supported responsible, targeted, tax cuts. Since I was first elected in 1999, I have voted over 120 times to lower the federal tax burden, including extending: the child tax credit, the welfare-to-work credit, the work opportunity credit, the deduction for teachers’ classroom expenses, and a credit for production of wind energy. Additionally, I have supported eliminating the marriage penalty tax and reforming the AMT exemption and extending the 10-percent individual income tax rate bracket.
In 2000, I voted for President Bush’s tax cut, the largest in American history. At that time, our nation was in projected surplus mode. Later, I voted against extending these cuts indefinitely because our economic situation had changed dramatically and we were then and are now in deficit mode. Tax cuts given with borrowed money aren’t tax cuts at all – they are a debt we pass along to our children and grandchildren. To the extent that we get our fiscal house back in order, I will continue to support responsible, targeted tax cuts.
Tax Simplification
I am concerned about the increasing complexity of the federal tax code and believe that Congress should begin to look at ways in which we can make the current tax system fair, simple, stable and economically efficient.
I support simplifying the current tax code because it will reduce both the time and money spent on taxes. A simplified tax system would allow our government to reduce the administrative costs of managing tax collection and compliance, which would, in the long-run, save taxpayers money.
As this is an important issue, many of my colleagues have put forth proposals. Several of these revolve around the creation of national sales tax or a flat income tax. These changes however, will drastically move our country from its current, progressive system of income-based taxation to a regressive tax system, shifting the burden of federal taxation to those lower- and middle-income taxpayers currently benefiting from the progressive tax system.
While the current tax system is complex and does need reform, I am not convinced that the so-called fair tax proposal is the appropriate response. I look forward to reviewing any and all proposals to create a fair, simple, progressive and transparent tax system.
Alternative Minimum Tax (AMT)
The House passed legislation to extend AMT relief through 2006 on December 7, 2005. This will extend the increased AMT exemption amounts for taxpayers to taxable year 2006. Provisions in current law that allow taxpayers to use their personal tax credits against both their regular and AMT tax liabilities were also extended to 2005.
I supported this bill because, as well as being a step towards solving the current problems with AMT, I believed it would supply a much deserved tax cut for Kansas families.
The AMT was originally designed to prevent high-income taxpayers from escaping their “fair” share of the income tax burden. Recently, though, there has been an increase in the number of middle to upper-middle income taxpayers required to pay the AMT. By 2007, over 20 million taxpayers could be affected by the AMT.
This increase will occur because of inflation, new tax credits enacted as part of the Tax Reform Act of 1996, and the fact that regular income tax is indexed for inflation but the AMT is not. Over time, this a reduction in differences between regular income tax liabilities and AMT liabilities will occur. Absent legislative changes, there will be a significant growth in the number of taxpayers adversely affected by the AMT.