Louie Gohmert on Tax Reform
Republican Representative (TX-1)
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.
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.
OnTheIssues.org interprets the 2005-2006 CTJ scores as follows:
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:
Politicians often run for office saying they won't raise taxes, but then quickly turn their backs on the taxpayer. The idea of the Pledge is simple enough: Make them put their no-new-taxes rhetoric in writing.
In the Taxpayer Protection Pledge, candidates and incumbents solemnly bind themselves to oppose any and all tax increases. While ATR has the role of promoting and monitoring the Pledge, the Taxpayer Protection Pledge is actually made to a candidate's constituents, who are entitled to know where candidates stand before sending them to the capitol. Since the Pledge is a prerequisite for many voters, it is considered binding as long as an individual holds the office for which he or she signed the Pledge.
Since its rollout with the endorsement of President Reagan in 1986, the pledge has become de rigeur for Republicans seeking office, and is a necessity for Democrats running in Republican districts.
The Contract from America, clause 4. Enact Fundamental Tax Reform:
Adopt a simple and fair single-rate tax system by scrapping the internal revenue code and replacing it with one that is no longer than 4,543 words--the length of the original Constitution.
The Contract from America, clause 10. Stop the Tax Hikes:
Permanently repeal all tax hikes, including those to the income, capital gains, and death taxes, currently scheduled to begin in 2011.
[The ATR, Americans for Tax Reform, run by conservative lobbyist Grover Norquist, ask legislators to sign the Taxpayer Protection Pledge in each election cycle. Their self-description:]
In the Taxpayer Protection Pledge, candidates and incumbents solemnly bind themselves to oppose any and all tax increases. Since its rollout in 1986, the pledge has become de rigeur for Republicans seeking office, and is a necessity for Democrats running in Republican districts. Today the Taxpayer Protection Pledge is offered to every candidate for state office and to all incumbents. More than 1,100 state officeholders, from state representative to governor, have signed the Pledge.
The Taxpayer Protection Pledge: "I pledge to the taxpayers of my district and to the American people that I will: ONE, oppose any and all efforts to increase the marginal income tax rate for individuals and business; and TWO, oppose any net reduction or elimination of deductions and credits, unless matched dollar for dollar by further reducing tax rates."
Opponents' Opinion (from wikipedia.com):In Nov. 2011, Sen. Harry Reid (D-NV) claimed that Congressional Republicans "are being led like puppets by Grover Norquist. They're giving speeches that we should compromise on our deficit, but never do they compromise on Grover Norquist. He is their leader." Since Norquist's pledge binds signatories to opposing deficit reduction agreements that include any element of increased tax revenue, some Republican deficit hawks now retired from office have stated that Norquist has become an obstacle to deficit reduction. Former Republican Senator Alan Simpson, co-chairman of the National Commission on Fiscal Responsibility and Reform, has been particularly critical, describing Norquist's position as "no taxes, under any situation, even if your country goes to hell."
Repeals the federal estate, gift, and generation-skipping transfer taxes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
Heritage Action Summary: This bill would repeal the estate and generation-skipping transfer taxes, as well as cut the top gift tax rate.
Heritage Foundation recommendation to vote YES: (4/16/2015): Collectively, these measures repeal the pernicious double tax known as the "death tax," and result in a tax cut of $269 billion over 10 years. The death tax hurts economic growth and therefore limits the ability of Americans to prosper. Repealing the death tax would generate an average of 18,000 jobs annually and increase the overall net worth of American households by $300 billion a year. The federal government should encourage, not punish, Americans who work and pay taxes their whole lives, save enough to support themselves through retirement, and retain the ability to fulfill the American Dream by passing along a better life to their children.
Secretary of Labor Robert Reich recommendation to vote YES: (robertreich.org 6/4/2015): At a time of historic economic inequality, it should be a no-brainer to raise a tax on inherited wealth for the very rich. Yet there's a move among some members of Congress to abolish it altogether. Today the estate tax reaches only the richest 2/10 of 1%, and applies only to dollars in excess of $10.86 million for married couples or $5.43 million for individuals. That means if a couple leaves to their heirs $10,860,001, they now pay the estate tax on $1. The current estate tax rate is 40%, so that would be 40 cents. Yet according to these members of Congress, that's still too much. Our democracy's Founding Fathers did not want a privileged aristocracy. Yet that's the direction we're going in. The tax on inherited wealth is one of the major bulwarks against it. That tax should be increased and strengthened.
Legislative outcome: Passed by the House 240-179-12; never came to vote in Senate.
|2021-22 Governor, House and Senate candidates on Tax Reform:||Louie Gohmert on other issues:|
George P. Bush
Cristina Tzintzun Ramirez
Open Seats / Turnovers 2022:
AL-5: Mo Brooks (R) running for AL Senator
CA-37: Karen Bass (D) running for mayor of Los Angeles
FL-10: Val Demings (D) running for FL Senator
FL-13: Charlie Crist (D) running for FL governor
HI-2: Kai Kahele (D) running for MD governor
MD-4: Anthony G. Brown (D) running for attorney general of Maryland
MO-4: Vicky Hartzler (R) running for MO Senator
MO-7: Billy Long (R) running for MO Senator
NY-1: Lee Zeldin (R) running for NY governor
NY-3: Thomas Suozzi (D) running for NY governor
NC-8: Ted Budd (R) running for NC Senator
NC-11: Madison Cawthorn (R) Incumbent lost renomination
OH-13: Tim Ryan (D) running for OH Senator
OK-2: Markwayne Mullin (R) running for OK Senator
OR-5: Kurt Schrader (D) Incumbent lost renomination
PA-17: Conor Lamb (D) running for PA Senator
SC-7: Tom Rice (R) Incumbent lost renomination
TX-1: Louie Gohmert (R) running for attorney general of Texas
VT-0: Peter Welch (D) running for VT Senator
Special Elections 2021:
LA-2: Troy Carter (R, April 2021)
LA-5: Julia Letlow (R, March 2021)
NM-1: Melanie Stansbury (D, June 2021)
OH-11: Shontel Brown (D, Nov. 2021)
OH-15: Mike Carey (R, Nov. 2021)
TX-6: Jake Ellzey (R, July 2021)
Hot Races 2022:
CA-27: Christy Smith (D) vs. Mike Garcia (R)
FL 27: Annette Taddeo (D) vs. Maria Elvira Salazar (R)
GA-7: Carolyn Bourdeaux (D) lost redistricting race to Lucy McBath (D)
GA-10: Vernon Jones(R) vs. Paul Broun (R,lost May 24 primary) to replace Jody Hice (R) running for Secretary of GA
ME-2: Bruce Poliquin (R) rematch against Jared Golden (D)
MI-10: John James (R) - running for newly redistricted seat
MI-11: Andy Levin (D) redistricted to face Haley Stevens (D)
MT 1: Ryan Zinke (R) - running for newly created seat
MT-2: Al Olszewski(R) vs. Sam Rankin(Libertarian) vs. Matt Rosendale(R)
NJ-7: Thomas Kean Jr. (R) challenging Tom Malinowski (R)
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NY 12: Carolyn Maloney (D) redistricted to face Jerry Nadler (D)
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RI-1: Allen Waters (R) vs. David Cicilline (D)
TX-34: Mayra Flores (R) - Elected SPEL June 2022; general election Nov. 2022 against Vicente Gonzalez (D)
WA-4: Brad Klippert (R) challenging Dan Newhouse (R)
WV-2: David McKinley lost a redistricting race to fellow incumbent Alex Mooney
Special Elections 2022:
AK-0: Sarah Palin (R) vs. Al Gross (Independent)
CA-22: Connie Conway (R) replaced Devin Nunes on June 7.
FL-20: Sheila Cherfilus-McCormick (D) replaced Alcee Hastings on Jan. 11.
MN-1: vacancy left by Jim Hagedorn (R), deceased Feb. 17; SPEL on August 9.
NE-1: Jeffrey Fortenberry (R) Resigned on March 31, after being convicted; Mike Flood (R) in SPEL on June 28.
NY-19: Marc Molinaro (R) running for SPEL Aug. 23 for seat vacated by Antonio Delgado (D), now Lt.Gov.
TX-34: Mayra Flores (R) SPEL June 14 for seat vacated by Filemon Vela Jr. (D)
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