Shelley Berkley on Tax Reform

Democratic Representative (NV-1)

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

Congressional Summary: Amends the Internal Revenue Code to:

increase and extend through 2008 the alternative minimum tax (AMT) exemption amounts;
extend through 2008 the offset of personal tax credits against AMT tax liabilities;
treat net income and loss from an investment services partnership interest as ordinary income and loss;
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

Voted NO 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.

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)

Reference: Tax Relief Extension Reconciliation Act; Bill HR 4297 ; vote number 2005-621 on Dec 8, 2005

Voted YES on providing tax relief and simplification.

Working Families Tax Relief Act of 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:
1. the tax credit for increasing research activities;
2. the work opportunity tax credit;
3. the welfare-to-work tax credit;
4. the authority for issuance of qualified zone academy bonds;
5. the charitable deduction for donations by corporations of computer technology and equipment used for educational purposes;
6. the tax deduction for certain expenses of elementary and secondary school teachers;
7. the expensing of environmental remediation costs;
8. the designation of a District of Columbia enterprise zone

Reference: Bill sponsored by Bill Rep Thomas [R, CA-22]; Bill H.R.1308 ; vote number 2004-472 on Sep 23, 2004

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 NO 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 NO 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 NO 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

Voted YES on eliminating the "marriage penalty".

Vote on a bill that would reduce taxes for married couple by approximately $195 billion over 10 years by removing provisions that make taxes for married couples higher than those for two single people. The bill is identical to HR 6 that was passed by the House in February, 2000. Reference: Bill sponsored by Archer, R-TX; Bill HR 4810 ; vote number 2000-392 on Jul 12, 2000

Voted YES on $46 billion in tax cuts for small business.

Provide an estimated $46 billion in tax cuts over five years. Raise the minimum wage by $1 an hour over two years. Reduce estate and gift taxes, grant a full deduction on health insurance for self-employed individuals, increase the deductible percentage of business meal expenses to 60 percent in 2002, and designate 15 renewal communities in urban rural areas. Reference: Bill sponsored by Lazio, R-NY; Bill HR 3081 ; vote number 2000-41 on Mar 9, 2000

Phaseout the death tax.

Berkley 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:

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.

Source: House Resolution Sponsorship 01-HR8 on Mar 14, 2001

Rated 24% by NTU, indicating a "Big Spender" on tax votes.

Berkley scores 24% 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

Rated 83% by the CTJ, indicating support of progressive taxation.

Berkley scores 83% by the CTJ on taxationissues

OnTheIssues.org interprets the 2005-2006 CTJ scores as follows:

0% - 20%: opposes progressive taxation (approx. 235 members)
21% - 79%: mixed record on progressive taxation (approx. 39 members)
80%-100%: favors progressive taxation (approx. 190 members)

About CTJ (from their website, www.ctj.org):

Citizens for Tax Justice, founded in 1979, is not-for-profit public interest research and advocacy organization focusing on federal, state and local tax policies and their impact upon our nation. CTJ's mission is to give ordinary people a greater voice in the development of tax laws. Against the armies of special interest lobbyists for corporations and the wealthy, CTJ fights for:

Fair taxes for middle and low-income families
Requiring the wealthy to pay their fair share
Closing corporate tax loopholes
Adequately funding important government services
Reducing the federal debt
Taxation that minimizes distortion of economic markets

Source: CTJ website 06n-CTJ on Dec 31, 2006

Member of House Ways and Means Committee.

Berkley is a member of the House Ways and Means Committee

The Committee of Ways and Means is the chief tax-writing committee of the United States House of Representatives. Members of the Ways and Means Committee cannot serve on any other House Committees, though they can apply for a waiver from their party's congressional leadership. The Committee has jurisdiction over all taxation, tariffs and other revenue-raising measures, as well as a number of other programs including:

Social Security
Unemployment benefits
Medicare
Enforcement of child support laws
Temporary Assistance for Needy Families, a federal welfare program
Foster care and adoption programs

The U.S. Constitution requires that all bills regarding taxation must originate in the House of Representatives. Since House procedure is that all bills regarding taxation must go through this committee, the committee is very influential, as is its Senate counterpart, the U.S. Senate Committee on Finance. Source: U.S. House of Representatives website, www.house.gov 11-HC-WM on Feb 3, 2011

Tax incentives for child care; eliminate marriage penalty.

Berkley adopted the Women's Caucus policy agenda:

Child Care:

HR389�Child Care Infrastructure Act of 1999�A bill to provide a credit against tax for employers who provide child care assistance for dependents of their employees, and for other purposes. (Maloney/Ros-Lehtinen)
HR963�Child Care Availability Incentive Act�A bill to allow employers a credit for a portion of the expenses of providing dependent care services to employees. (Pryce/Roemer)

HR1097�A bill to amend the Internal Revenue Code of 1986 to simplify the $500 per child tax credit and other individual non-refundable credits by repealing the complex limitations on the allowance of those credits resulting from their interaction with the alternative minimum tax. (Neal)
Dependent Care Tax Credit:
Several bills pending to expand the DCTC�General concepts we endorse�Increase percentage of expenses from 30% to 50% Increase the income level at which one can receive the maximum credit from $10,000 to $30,000 Some kind of state-at-home parent component Indexation for inflation Bills: HR1139 (Tauscher)�the Affordable Child Care, Education, Security, and Safety Act, a bill which includes this provision. HR2259 (N. Johnson)�Tax Relief for Parents Act of 1999, a bill to amend the Internal Revenue Code of 1986 to expand the dependent care credit.
Marriage Penalty:
HR6�Marriage Tax Elimination Act of 1999�A bill to amend the Internal Revenue Code of 1986 to eliminate the marriage penalty by providing that the income tax rate bracket amounts, and the amount of the standard deduction for joint returns shall be twice the amounts applicable to unmarried individuals. (Weller/McIntosh/Danner) Source: Women's Caucus Agenda-106th Congress 99-WC13 on Jul 15, 1999

Tax incentives for education, new schools, & families.

Berkley adopted the Women's Caucus policy agenda:

Estate Tax:

HR241�Surviving Spouse Fairness Act of 1999�A bill to amend the Internal Revenue Code of 1986 to provide that the $500,000 exclusion of gain on the sale of a principle residence shall apply to certain sales by a surviving spouse. (Roukema)
Education:
HR464�Higher Education Affordability and Availability Act�A bill to provide tax incentives for education and to exclude from income distributions from qualified tuition programs used for qualified higher education expenses (Granger)
School Construction: �providing low-interest bonds to local school districts:
HR1760�America�s Better Classrooms Act of 1999 (N.Johnson) HR415�Expand and Rebuild America�s Schools Act of 1997 (Sanchez)
HR1660�Public School Modernization Act of 1999 (Rangel)
HR2085�Family Tax Reduction Act of 1999�A bill to amend the Internal Revenue Code of 1986 to end the marriage penalty, to provide estate tax relief for family-owned farms and other family-owned businesses, to provide a tax credit for longterm care needs, to expand the child and dependent care tax credit, to increase the deduction for health insurance costs for self-employed individuals, and to adjust for inflation the exemption amounts used to calculate the individual alternative minimum tax. (Hooley)
HR2020�Tax Relief for Working Americans Act of 1999�A bill to amend the Internal Revenue Code of 1986 to provide marriage penalty relief, incentives to encourage health coverage, and increased child care assistance, to extend certain expiring tax provisions, and for other purposes. (N. Johnson).

Source: Women's Caucus Agenda-106th Congress 99-WC14 on Jul 15, 1999

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