Search for...
Follow @ontheissuesorg
OnTheIssuesLogo

John Sarbanes on Tax Reform

Democrat


Voted YES on extending AMT exemptions to avoid hitting middle-income.

Congressional Summary: Amends the Internal Revenue Code to:
  1. increase and extend through 2008 the alternative minimum tax (AMT) exemption amounts;
  2. extend through 2008 the offset of personal tax credits against AMT tax liabilities;
  3. treat net income and loss from an investment services partnership interest as ordinary income and loss;
  4. deny major integrated oil companies a tax deduction for income attributable to domestic production of oil or gas.
Wikipedia.com Explanation: The AMT became operative in 1970. It was intended to target 155 high-income households that had been eligible for so many tax benefits that they owed little or no income tax under the tax code of the time. However, when Ronald Reagan signed the Tax Reform Act of 1986, the AMT was greatly expanded to aim at a different set of deductions that most Americans receive.

The AMT sets a minimum tax rate of 26% or 28% on some taxpayers so that they cannot use certain types of deductions to lower their tax. By contrast, the rate for a corporation is 20%. Affected taxpayers are those who have what are known as "tax preference items". These include long-term capital gains, accelerated depreciation, & percentage depletion.

Because the AMT is not indexed to inflation, an increasing number of upper-middle-income taxpayers have been finding themselves subject to this tax. In 2006, an IRS report highlighted the AMT as the single most serious problem with the tax code.

For 2007, the AMT Exemption was not fully phased until [income reaches] $415,000 for joint returns. Within the $150,000 to $415,000 range, AMT liability typically increases as income increases above $150,000.

OnTheIssues.org Explanation: This vote extends the AMT exemption, and hence avoids the AMT affecting more upper-middle-income people. This vote has no permanent effect on the AMT, although voting YES implies that one would support the same permanent AMT change.

Reference: Alternative Minimum Tax Relief Act; Bill H.R.6275 ; vote number 2008-455 on Jun 25, 2008

Voted YES on paying for AMT relief by closing offshore business loopholes.

H.R.4351: To provide individuals temporary relief from the alternative minimum tax (AMT), via an offset of nonrefundable personal tax credits. [The AMT was originally intended to apply only to people with very high incomes, to ensure that they paid a fair amount of income tax. As inflation occurred, more people became subject to the AMT, and now it applies to people at upper-middle-class income levels as well. Both sides agree that the AMT should be changed to apply only to the wealthy; at issue in this bill is whether the cost of that change should be offset with a tax increase elsewhere or with no offset at all. -- ed.]

Proponents support voting YES because:

Rep. RANGEL: We have the opportunity to provide relief to upward of some 25 million people from being hit by a $50 billion tax increase, which it was never thought could happen to these people. Almost apart from this, we have an opportunity to close a very unfair tax provision, that certainly no one has come to me to defend, which prevents a handful of people from having unlimited funds being shipped overseas under deferred compensation and escaping liability. Nobody, liberal or conservative, believes that these AMT taxpayers should be hit by a tax that we didn't intend. But also, no one has the guts to defend the offshore deferred compensation. So what is the problem?

Opponents recommend voting NO because:

Rep. McCRERY: This is a bill that would patch the AMT, and then increase other taxes for the patch costs. Republicans are for patching the AMT. Where we differ is over the question of whether we need to pay for the patch by raising other taxes. The President's budget includes a 1-year patch on the AMT without a pay-for. That is what the Senate passed by a rather large vote very recently, 88-5. The President has said he won't sign the bill that is before us today. Republicans have argued against applying PAYGO to the AMT patch. In many ways PAYGO has shown itself to be a farce.

Reference: AMT Relief Act; Bill HR4351 ; vote number 2007-1153 on Dec 12, 2007

2012 Governor, House and Senate candidates on Tax Reform: John Sarbanes on other issues:
MD Gubernatorial:
Martin O`Malley
MD Senatorial:
Barbara Mikulski
Benjamin Cardin

Left 113th Congress, 2013-2014:
AL-1: Jo Bonner(R,resigned)
FL-13:Bill Young(R,deceased)
FL-19:Trey Radel(R,arrested)
IL-2: Jesse L. Jackson(D,convicted)
LA-5: Rodney Alexander(R,resigned)
MA-5: Ed Markey(D,elected)
MO-8: Jo Ann Emerson(R,resigned)
NC-12:Mel Watt(D,appointed)
NJ-1: Rob Andrews(D,investigated)
SC-1: Tim Scott(R,appointed)

Newly-elected special elections 2013-2014:
AL-1: Bradley Byrne(R)
FL-13:David Jolly(R)
FL-19:Curt Clawson(R)
IL-2: Robin Kelly(D)
LA-5: Vance McAllister(R)
MA-5: Katherine Clark(D)
MO-8: Jason Smith(R)
NC-12: Pending Jul.15
NJ-1: Pending Nov.4
SC-1: Mark Sanford(R)
Won primary 2014:
TX-4: John Ratcliffe(R)
VA-7: Dave Brat(R)

Retiring to run for Senate in 2014:
AR-4: Tom Cotton(R)
CO-4: Cory Gardner(R)
GA-1: Jack Kingston(R)
GA-10:Paul Broun(R)
GA-11:Phil Gingrey(R)
HI-1: Colleen Hanabusa(D)
IA-1: Bruce Braley(D)
LA-6: Bill Cassidy(R)
MI-14:Gary Peters(D)
MT-0: Steve Daines(R)
OK-5: James Lankford(R)
TX-36:Steve Stockman(R)
WV-2: Shelley Moore Capito(R)

Former Reps running for House in 2014:
AL-5: Parker Griffith(R)
CA-3: Doug Ose(R)
GA-11:Bob Barr(R)
CA-31:Joe Baca(D)
IL-10:Bob Dold(R)
IL-17:Bobby Schilling(R)
MS-4: Gene Taylor(D)
MT-0: Denny Rehberg(R)
NH-1: Frank Guinta(R)
NY-11:Vito Fossella(R)
NY-18:Nan Hayworth(R)
OH-7: John Boccieri(D)
PA-13:Marjorie Margolies(D)
TX-23:Francisco Canseco(R)
Lost primary 2014:
TX-4: Ralph Hall(R)
VA-7: Eric Cantor(R)

Retiring to run for State Office in 2014:
AR-2: Tim Griffin(R)
CA-35:Gloria McLeod(D)
ME-2: Mike Michaud(D)
PA-13:Allyson Schwartz(D)
VI-0: Donna Christensen(D)

Retiring effective Jan. 2015:
AL-6: Spencer Bachus(R)
AZ-7: Ed Pastor(D)
CA-11:George Miller(D)
CA-25:Howard McKeon(R)
CA-31:Gary Miller(R)
CA-33:Henry Waxman(D)
CA-45:John Campbell(R)
IA-3: Tom Latham(R)
MI-4: Dave Camp(R)
MI-6: Tom Petri(R)
MI-12:John Dingell(D)
MN-6: Michele Bachmann(R)
NC-6: Howard Coble(R)
NC-7: Mike McIntyre(D)
NJ-3: Jon Runyan(R)
NJ-12:Rush Holt(D)
NY-4: Carolyn McCarthy(D)
NY-21:Bill Owens(D)
PA-6: Jim Gerlach(R)
UT-4: Jim Matheson(D)
VA-8: James Moran(D)
VA-10:Frank Wolf(R)
WA-4: Doc Hastings(R)
Abortion
Budget/Economy
Civil Rights
Corporations
Crime
Drugs
Education
Energy/Oil
Environment
Families/Children
Foreign Policy
Free Trade
Govt. Reform
Gun Control
Health Care
Homeland Security
Immigration
Infrastructure/Technology
Jobs
Principles/Values
Social Security
Tax Reform
War/Iraq/Mideast
Welfare/Poverty

Main Page
Wikipedia Profile
Ballotpedia Profile
MD politicians
MD Archives

Contact info:
Email Contact Form
Mailing Address:
Rayburn HOB 2444, Washington, DC 20515
Official Website

Page last updated: Jul 20, 2014