Butch Otter on Tax Reform
Republican governor; previously Representative (ID-1)
Lower the marginal tax rate for highest income
By removing the top tax bracket on individual income, this bill reduces the income tax from 7.8% to 7.4% for the highest income earners. Under this bill, that 7.4% personal tax rate will match the 7.4% corporate tax rate.
- Prior to proposed bill: Individuals' tax and tax on estates and trusts: on income over $7,500 but less than $20,000, the tax rate is 7.4%; on income over $20,000, the tax rate is 7.8%
Under proposed bill: the tax bracket is removed for income over $20,000, the tax rate is 7.4%
- Prior to proposed bill: tax on corporate income is 7.6%
- Under proposed bill: tax on corporate income is 7.4%
Legislative Outcome: Passed Senate 28-7-0 on March 29; passed House 49-20-1 on March 1; signed by Gov. Otter on April 5.
Source: Idaho legislative voting records: S 1082
, Apr 5, 2012
Reduce tax burden; lower rates for individuals & businesses
I encourage you to seriously consider legislation being introduced by Representative Marv Hagedorn. His bill would equalize and then gradually reduce our marginal State income tax rates for individuals and businesses over ten years, starting in 2013.
But whether it's that bill or an alternative, we need a long-term plan for reducing the tax burden on our citizens. That will go a long way toward providing a competitive advantage for Idahoans, stimulating economic growth and expanding our tax base.
Source: Idaho 2011 State of the State and Budget Address
, Jan 10, 2011
Keep sales tax on groceries with a grocery tax credit
I will be submitting legislation to increase the grocery tax credit for lower-income Idahoans to as much as $90 per person. I have carefully considered eliminating the sales tax on groceries. There clearly is a need to reduce the tax burden on
lower-income individuals and families who must spend a disproportionate amount of their income on food. Simply eliminating the tax is an attractive idea, but the eventual $180 million budget impact would be tough to absorb.
Source: 2004 State of the State Address
, Jan 8, 2007
Voted YES on retaining reduced taxes on capital gains & dividends.
Vote to reduce federal spending by $56.1 billion over five years by retaining a reduced tax rate on capital gains and dividends, as well as.
Reference: Tax Relief Extension Reconciliation Act;
Bill HR 4297
; vote number 2005-621
on Dec 8, 2005
- Decreasing the number of people that will be required to pay the Alternative Minimum Tax (AMT)
- Allowing for deductions of state and local general sales taxes through 2007 instead of 2006
- Lengthening tax credits for research expenses
- Increasing the age limit for eligibility for food stamp recipients from 25 to 35 years
- Continuing reduced tax rates of 15% and 5% on capital gains and dividends through 2010
- Extending through 2007 the expense allowances for environmental remediation costs (the cost of cleanup of sites where petroleum products have been released or disposed)
Voted YES on providing tax relief and simplification.
Working Families Tax Relief Act of 2004
Reference: Bill sponsored by Bill Rep Thomas [R, CA-22];
; vote number 2004-472
on Sep 23, 2004
- Extension of Family Tax Provisions
- Repeals the scheduled reduction (15 to 10 percent) for taxable years beginning before January 1, 2005, of the refundability of the child tax credit.
- Extends through 2005 the increased exemption from the alternative minimum tax for individual taxpayers.
- Extends through 2005 the following expiring tax provisions:
- the tax credit for increasing research activities;
- the work opportunity tax credit;
- the welfare-to-work tax credit;
- the authority for issuance of qualified zone academy bonds;
- the charitable deduction for donations by corporations of computer technology and equipment used for educational purposes;
- the tax deduction for certain expenses of elementary and secondary school teachers;
- the expensing of environmental remediation costs;
- the designation of a District of Columbia enterprise zone
Voted YES on making permanent an increase in the child tax credit.
Vote to pass a bill that would permanently extend the $1,000 per child tax credit that is scheduled to revert to $700 per child in 2005. It would raise the amount of income a taxpayer may earn before the credit begins to phase out from $75,000 to $125,000 for single individuals and from $110,000 to $250,000 for married couples. It also would permit military personnel to include combat pay in their gross earnings in order to calculate eligibility for the child tax credit.
Reference: Child Credit Preservation and Expansion Act;
Bill HR 4359
; vote number 2004-209
on May 20, 2004
Voted YES on permanently eliminating the marriage penalty.
Vote to pass a bill that would permanently extend tax provisions eliminating the so-called marriage penalty. The bill would make the standard deduction for married couples double that of single taxpayers. It would also increase the upper limit of the 15 percent tax bracket for married couples to twice that of singles. It also would make permanent higher income limits for married couples eligible to receive the refundable earned-income tax credit.
Reference: Marriage Penalty Relief;
Bill HR 4181
; vote number 2004-138
on Apr 28, 2004
Voted YES on making the Bush tax cuts permanent.
Vote to pass a bill that would permanently extend the cuts in last year's $1.35 trillion tax reduction package, many of which are set to expire in 2010. It would extend relief of the marriage penalty, reductions in income tax rates, doubling of the child tax credit, elimination of the estate tax, and the expansion of pension and education provisions. The bill also would revise a variety of Internal Revenue Service tax provisions, including interest, and penalty collection provisions. The penalties would change for the failure to pay estimated taxes; waive minor, first-time error penalties; exclude interest on unintentional overpayments from taxable income; and allow the IRS greater discretion in the disciplining of employees who have violated policies.
Reference: Bill sponsored by Lewis, R-KY;
Bill HR 586
; vote number 2002-103
on Apr 18, 2002
Voted YES on $99 B economic stimulus: capital gains & income tax cuts.
Vote to pass a bill that would grant $99.5 billion in federal tax cuts in fiscal 2002, for businesses and individuals.
The bill would allow more individuals to receive immediate $300 refunds, and lower the capital gains tax rate from 20% to 18%.
Bill HR 3090
; vote number 2001-404
on Oct 24, 2001
Voted YES on Tax cut package of $958 B over 10 years.
Vote to pass a bill that would cut all income tax rates and make other tax cuts of $958.2 billion over 10 years. The bill would convert the five existing tax rate brackets, which range from 15 to 39.6 percent, to a system of four brackets with rates of 10 to 33 percent.
Reference: Bill sponsored by Thomas, R-CA;
Bill HR 1836
; vote number 2001-118
on May 16, 2001
Voted YES on eliminating the Estate Tax ("death tax").
Vote to pass a bill that would gradually reduce revenue by $185.5 billion over 10 years with a repeal of the estate tax by 2011.
Reference: Bill sponsored by Dunn, R-WA;
Bill HR 8
; vote number 2001-84
on Apr 4, 2001
Phaseout the death tax.
Otter co-sponsored the Death Tax Elimination Act:
Title: To amend the Internal Revenue Code of 1986 to phaseout the estate and gift taxes over a 10-year period.
Summary: Repeals, effective January 1, 2011, current provisions relating to the basis of property acquired from a decedent. Provides with respect to property acquired from a decedent dying on January 1, 2011, or later that:
Source: House Resolution Sponsorship 01-HR8 on Mar 14, 2001
- property shall be treated as transferred by gift; and
- the basis of the person acquiring the property shall be the lesser of the adjusted basis of the decedent or the fair market value of the property at the date of the decedent's death.
- Requires specified information to be reported concerning non-cash assets over $1.3 million transferred at death and certain gifts exceeding $25,000.
- Makes the exclusion of gain on the sale of a principal residence available to heirs.
- Revises current provisions concerning the transfer of farm real to provide that gain on such
exchange shall be recognized to the estate only to the extent that the fair market value of such property exceeds such value on the date of death.
- Provides a similar rule for certain trusts.
- Amends the special rules for allocation of the generation-skipping tax (GST) exemption to provide that if any individual makes an indirect skip during such individual's lifetime, any unused portion of such individual's GST exemption shall be allocated to the property transferred to the extent necessary to make the inclusion ratio for such property zero; and
- if the amount of the indirect skip exceeds such unused portion, the entire unused portion shall be allocated to the property transferred.
- Provides that, if an allocation of the GST exemption to any transfers of property is deemed to have been made at the close of an estate tax inclusion period, the value of the property shall be its value at such time.
Abolish IRS--replace income tax with national sales tax.
Otter co-sponsored the Fair Tax Act to abolish the IRS
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States. The Fair Tax Act of 2003 amends the Internal Revenue Code to repeal subtitle A (Income Taxes), B (Estate and Gift Taxes), and C (Employment Taxes) of the Internal Revenue Code. Imposes a tax on the use or consumption of taxable property or services. Sets the tax rate at 23 percent for the calendar year 2005. Sets the rate, for years after 2005, at the combined sum of the general revenue rate (14.91 percent), the old-age survivors and disability rate, and the hospital insurance rate. Senate bill S.1493 is identical to House bill HR.25.
Source: Bill sponsored by 2 Senators and 55 Reps 03-S1493 on Jul 30, 2003
Rated 71% by NTU, indicating "Satisfactory" on tax votes.
Otter scores 71% by NTU on tax-lowering policies
Every year National Taxpayers Union (NTU) rates U.S. Representatives and Senators on their actual votes—every vote that significantly affects taxes, spending, debt, and regulatory burdens on consumers and taxpayers. NTU assigned weights to the votes, reflecting the importance of each vote’s effect. NTU has no partisan axe to grind. All Members of Congress are treated the same regardless of political affiliation. Our only constituency is the overburdened American taxpayer. Grades are given impartially, based on the Taxpayer Score. The Taxpayer Score measures the strength of support for reducing spending and regulation and opposing higher taxes. In general, a higher score is better because it means a Member of Congress voted to lessen or limit the burden on taxpayers.
The Taxpayer Score can range between zero and 100. We do not expect anyone to score a 100, nor has any legislator ever scored a perfect 100 in the multi-year history of the comprehensive NTU scoring system. A high score does not mean that the Member of Congress was opposed to all spending or all programs. High-scoring Members have indicated that they would vote for many programs if the amount of spending were lower. A Member who wants to increase spending on some programs can achieve a high score if he or she votes for offsetting cuts in other programs. A zero score would indicate that the Member of Congress approved every spending proposal and opposed every pro-taxpayer reform.
Source: NTU website 03n-NTU on Dec 31, 2003
Page last updated: Feb 16, 2018