Congresswoman Bachmann consistently supports lower taxes for all areas, and has stated that taxes are simply too high. She was a strong supporter for extending the Bush tax cuts, and has repeatedly called for ending the death tax, the AMT, and removing the tax on capital gains.
Congresswoman Bachmann has proposed the Taxpayer Bill of Rights to put her views on taxes on the record. This bill of rights includes the rights to expect the government to balance the budget without having their taxes raised, and the right to a simple, fair tax code that they can understand.
In addition to calling for a simplification of the tax code, Congresswoman Bachmann has called for an end to the death tax. She stated that the tax was inefficient, a job killer, and discouraged saving.
In keeping with the idea of ending some taxes and simplifying the overall tax code, Congresswoman Bachman has proposed the Taxpayer Choice Act. This legislation would end the AMT, make the Bush tax rates on capital gains and dividends permanent, and create a voluntary Simplified Tax that would give individuals the option of paying under a highly simplified income tax system or under the regular income tax as it is structured now.
During the 2010 debate over extending the Bush tax cuts, Congresswoman Bachmann noted that higher tax rates do not mean higher tax revenues. She stated that higher rates or the uncertainty of a temporary extension would hamper economic growth.
Although she has not proposed a specific tax plan, Congresswoman Bachmann has outlined steps she would take if elected President. The steps proposed included numerous tax measures, including:
Make all the Bush tax cuts permanent.
Cut the corporate tax rate of 34 percent to "single digits" to spur growth and job creation.
Kill capital gains taxes.
Zero out the death tax.
Cap personal income taxes at 20 percent.
Propose a "flatter tax" and a tax code no longer than 50-pages "double spaced, with a font size no smaller than 9-point. My guess is that even some of my Democratic colleagues would be able to read that bill."
Taxpayer Bill of Rights
In March of 2007, Congresswoman Bachmann released a statement noting her support for the taxpayer bill of rights.
Congresswoman Bachmann Attends Rally Supporting the American Taxpayer Bill of Rights
Bachmann at the American Taxpayer Bill or Rights Rally
Washington, Mar 21, 2007 -
Congresswoman Michele Bachmann spoke at a rally outside of the Capitol promoting the American Taxpayer Bill of Rights. Bachmann emphasized her commitment to pro-growth policies to foster American competitiveness through low tax policies.
“As a former federal tax attorney, I will continue to be an advocate for lower taxation and fiscal responsibility,” said Michele Bachmann. “We have seen our economy grow and produce nearly 7.6 million new jobs since significant tax relief was passed 42 months ago. I want to make sure we continue down the path of economic growth, not stifle it by increasing taxes and wasteful government spending.”
The American Taxpayer Bill of Rights establishes four basic rights to lay the groundwork for lower taxes for American taxpayers.
Taxpayers have a right to have a federal government that does not grow beyond their ability to pay for it. Taxpayers have a right to receive back each dollar that they entrust to the government for their retirement. Taxpayers have a right to expect the government to balance the budget without having their taxes raised. Taxpayers have a right to a simple, fair tax code that they can understand.
Opposition to Budget Vote
In March of 2007, Congresswoman Bachmann released a statement noting her opposition to a vote for a budget that would phase out the Bush tax cuts. She also reiterated her support for the taxpayer bill of rights.
Budget Proposes Largest Tax Increase in History
Congresswoman Bachmann Launching the Taxpayers Bill of Rights
Washington, Mar 29, 2007 -
The House voted today to allow the largest tax increase in history 216-210. The proposal would allow the tax cuts of 2001 and 2003 to expire, raising taxes $392.5 billion over 5 years. Congresswoman Michele Bachmann voted against the fiscally irresponsible proposal and released the following statement:
“As a former federal tax attorney, small-business owner and mother of five, I know that higher taxes and increased government spending is not the path to continued economic success. Instead of proposing a massive tax increase of $392.5 billion, Washington should be learning to live within a budget just like Minnesota families and small business owners.
“Under the current proposal, nearly 2 million Minnesotans would see their taxes rise and more than 480,000 business owners would have less money to invest in equipment, hire new employees or offer health benefits for current employees.
“Washington doesn’t have a revenue problem, it has a spending problem. That’s why I have been leading the effort for the American Taxpayer Bill of Rights, which is guided by four principles:
Taxpayers have a right to have a federal government that does not grow beyond their ability to pay for it. Taxpayers have a right to receive back each dollar that they entrust to the government for their retirement. Taxpayers have a right to expect the government to balance the budget without having their taxes raised. Taxpayers have a right to a simple, fair tax code that they can understand.
“Over the last 42 months our nation has seen unprecedented economic growth with the creation of 7.6 million new jobs. I am committed to making sure that Congress spends taxpayer dollars wisely and continues to pass policies that will promote, not stifle, job creation and competitiveness.”
Death Tax Repeal
In May of 2007, Congresswoman Bachmann released a statement noting her support for repealing the AMT.
Bachmann Calls for Death Tax Repeal
Bachmann at the American Taxpayer Bill or Rights Rally
Woodbury, Minnesota, May 21, 2007 - Congresswoman Michele Bachmann joined her colleagues, Reps. Kenny Hulshof (R-MO) and Bud Cramer (D-AL), Thursday in introducing the bipartisan Death Tax Repeal Permanency Act of 2007, legislation to permanently eliminate the death tax.
The death tax is imposed by the federal government on property left to heirs in a will, such as a family owned business or farm. Under current law, the tax is scheduled to decline every year until 2010, when it will temporarily disappear. But unless Congress acts to make that permanent, the death tax will return in 2011, subjecting the hard work of many family owned businesses to a tax rate as high as 55%.
“Dying shouldn’t be a taxable event,” said Bachmann. “The death tax hits people at the worst possible time. Just as they’re dealing with the passing of a loved one, they have to settle with the IRS.”
Aside from the issue of fundamental fairness, there are a host of economic and tax policy reasons why Congress should act to permanently repeal the federal death tax. To name a few:
The death tax is a job killer. One study estimates that between 175,000 and 250,000 potential jobs are lost each year as a result of the death tax.
The death tax is inefficient. Small businesses and family farms must divert resources from productive uses to engage in financial planning designed solely to avoid punitive taxation. These resources would be better used growing our economy.
The death tax discourages savings and investment. The threat of a large tax discourages continued investment in a family business or farm operation. Not only is this a perverse incentive, it punishes a lifetime of success.
Prominent organizations representing the interests of small business and family farms, such as the American Farm Bureau Federation, Associated Builders and Contractors, the National Association of Manufacturers, have endorsed the bill, and similar legislation passed the House during the last Congress with bipartisan support.
“By repealing the death tax, we would allow the economy to create even more jobs, which would make all of us better off,” said Bachmann. “This bill is an important step toward increasing fairness in the tax code and promoting economic security for Minnesota families, farmers and business owners.”
Taxpayer Choice Act
In October of 2007, Congresswoman Bachmann released a statement noting her support for the Taxpayer Choice Act.
Bachmann Proposes Major Tax Reform
Bill would modernize the Tax Code to better-serve American families
Thousands attended the Tax Cut Coalition Rally at the State Capitol
Washington, Oct 12, 2007 -
Congresswoman Michele Bachmann (MN-06) joined three of her colleagues this week in co-authoring the Taxpayer Choice Act, a comprehensive, individual income tax reform bill.
Alongside Reps. Paul Ryan, Jeb Hensarling and John Campbell, Bachmann explained the bill’s two primary goals: First, to guarantee that middle class American families are protected from the massive tax increase that the Alternative Minimum Tax (AMT) will soon impose upon them; and, second, to provide them with the choice and opportunity to become part of a 21st Century tax system that is fair, simple, efficient and, above all, accountable.
"As a former federal tax attorney, I’m concerned that many Americans will soon feel the impact of the arbitrary AMT, and it’s time to provide these families with a real solution," said Bachmann. "The Taxpayer Choice Act is a commonsense, principled approach to ensure 25 million American taxpayers are not hit with an unfair tax burden next year."
Created almost 40 years ago, the AMT was meant to be paid by only a few people earning more than $200,000 – or $1.2 million in today’s dollars – who were eligible for tax benefits which allowed them to pay little or no federal income tax. This outdated tax has since spiraled out of control and next year will affect millions of hard-working middle-class American families.
The Taxpayer Choice Act would repeal the burdensome AMT and instead give taxpayers the ability to choose how they wish to pay federal income taxes: 1) through the regular income Tax Code as it is currently structured; or 2) through a "Simplified Tax" that has just two income tax rates: 10 percent for joint income below $100,000 and 25 percent for income above. The Simplified Tax also includes a generous standard deduction of $25,000 for married couples, or $12,500 for individuals and a personal exemption of $3,500. The combination is equivalent to a $39,000 exemption for a family of four.
"We should give taxpayers, not Washington, the power to choose which system best fits their circumstances," said Bachmann. "Unlike other AMT proposals, this plan will not increase taxes for any American. Rather, it modernizes our inefficient Tax Code to better serve the interests of American families."
Taxes and the Deficit
In July of 2007, Congresswoman Bachmann released a statement noting her belief that tax reform would lead to deficit reduction.
Bachmann: Tax Relief Leads to Deficit Reduction Report Shows Increased Revenues without Raising Taxes
Bachmann at the American Taxpayer Bill or Rights Rally
Washington, Jul 11, 2007 - Congresswoman Michele Bachmann (MN-06) praised the government’s announcement today indicating the budget deficit would be cut in half from what it was only three years ago, falling to $205 billion by the end of September. This is nearly $40 billion lower than originally projected. A growing economy fueled by historic tax relief in 2001 and 2003 has contributed to record levels of revenue. Bachmann released the following statement:
“This reduction of the deficit exceeds expectations and further proves the importance of extending tax relief for families and small business owners. This relief has allowed taxpayers to keep more of their hard-earned money, spurring economic growth and increasing government revenues. Unfortunately, there are some in Washington who believe now is the right time to raise taxes, which would stifle the economic growth we’re seeing today.
“Washington doesn’t have a revenue problem, it has a spending problem. The Majority has already pushed to increase government spending by $23 billion this year, and has clearly shown its willingness to increase taxes on Americans to pay for it. I will continue to push for fiscal responsibility in Washington by rejecting attempts to raise taxes and reining in runaway government spending.”
Taxpayer Choice Act
In June of 2008, Congresswoman Bachmann released a statement noting legislation that she was introducing called the Taxpayer Choice Act.
Bachmann Fights for American Taxpayers Hails Economic Agenda which Supports her ‘Taxpayers Choice Act’
Washington, D.C., Jun 11, 2008 -
Today, U.S. Representative Michele Bachmann (MN-6) scored a big win for American taxpayers when her Taxpayer Choice Act was rolled out as the centerpiece of the Republican Economic Agenda to help America’s middle class.
"With skyrocketing gas and food costs, our nation’s families are struggling to make ends meet. It’s time that Washington work to give real relief to our hard-working taxpayers and help them afford what their families need and want. I’m honored that my legislation, H.R. 3818, the Taxpayers Choice Act, is the leading legislation in the recently unveiled Republican Economic Agenda.
"Millions of American taxpayers are dramatically affected by the burdensome Alternative Minimum Tax (AMT), forcing them to send even more of their hard- earned money to Washington. I strongly believe that the AMT must be repealed and that taxpayers deserve a choice in filing their taxes. H.R. 3818 would give taxpayers the option of paying either higher tax rates with more deductions or lower tax rates with no special deductions, empowering taxpayers to choose an option that best fits their families’ needs.
"I will continue to work in Congress to see that families in Minnesota and all across the nation get help to make ends meet. This Republican Economic Agenda is just one step stone to helping the struggling middle-class get back on their feet."
The Taxpayer Choice Act (H.R. 3818), has three points:
1) Immediately, fully, and permanently repeal the current AMT;
2) Make permanent the current capital gains and dividends tax rates; and
3) Create a voluntary Simplified Tax that would give individuals the option of paying under a highly simplified income tax system or under the regular income tax as it is structured now.
AMT Relied Act of 2008
In June of 2008, Congresswoman Bachmann released a statement noting her opposition to the AMT Relief Act of 2008.
Bachmann Urges Congress to Stand up for America’s Middle Class
Washington, D.C., Jun 25, 2008 -
Today, U.S. Representative Michele Bachmann (MN-6), a former tax attorney, made the following statement regarding the Democrat leadership’s tax-happy and misnamed bill, H.R. 6275, the Alternative Minimum Tax Relief Act of 2008:
"With our nation’s hard-working Americans already feeling the pressure of our nation’s record high food and gas costs, the last thing they need is to send more of their hard-earned money to Washington. Unfortunately, that’s what Democrats in Congress are asking them to do today with their so called AMT (Alternative Minimum Tax) "relief bill" today.
"The AMT must be abolished. When creating the law in 1969 for the purpose of ensuring that "wealthy" Americans paid income taxes, Congress chose to ignore future consequences and foolishly did not index it to inflation. So today, the AMT ensnares millions of middle class taxpayers – and it will continue to trap more and more middle class families each year until Congress acts.
"The Democrat-led Congress had the ability to fix it but instead they decided to raise taxes on our nation’s hard-working families with their so-called "relief bill," making it even more difficult for many to pay their bills. This AMT legislation also arbitrarily denies a corporate tax deduction for America’s five leading oil and gas companies beginning as soon as next year. According to the non-partisan Joint Committee on Taxation, that would amount to a $13.57 billion tax increase on oil and gas companies over eleven years – a cost that would certainly be borne by consumers. The American people are already feeling the pain at the pump, the last thing they need it to have those prices increased because of a tax-happy Congress.
"Our nation’s families are hurting. It’s time for Washington to turn its focus to protecting the family budget, not increasing the federal one. Congress must take real action before the AMT destroys our middle class. This bill sorely misses the mark."
Earlier this year Bachmann introduced the Taxpayer Choice Act, H.R. 3818, which would give taxpayers an option of paying either higher tax rates with more deductions or lower tax rates with no special deductions, whichever option works better for their circumstances. H.R. 3818 would also immediately, fully, and permanently repeal the current AMT; make permanent the current capital gains and dividends tax rates; and create a voluntary Simplified Tax that would give individuals the option of paying under a highly simplified income tax system or under the regular income tax as it is structured now.
Support for a Two-Month Tax Holiday
In December of 2008, Congresswoman Bachmann released a statement noting her support for a two-month tax holiday.
Bachmann Supports Two-Month Tax Holiday Taxpayers Deserve Help From Washington
Washington, D.C., Dec 10, 2008 -
Today, U.S. Representative Michele Bachmann (MN-6), a member of the House Financial Services Committee and the fiscally conservative Republican Study Committee, made the following statement in support of tax holiday legislation, H.R. 7309, which she is cosponsoring:
"In this sagging economy, our nation's taxpayers are really hurting. And, this year's marathon of bailouts hurts them more than ever. I come here today to support the Tax Holiday legislation because it's time that Washington bail out Americans, not bury them with extraordinary debt.
"Since coming to Congress, I've seen every corporate and organizational Tom, Dick and Harry hold out their tin cups, begging for billions from America's taxpayers. At some point, we must take a stand and give our taxpayers a break from handouts and bailouts. Supporting this legislation is supporting the hardworking men and women who sent us to Washington."
H.R. 7309 would convert the remaining $350 billion of Treasury Secretary Hank Paulson's bailout funds into an income and FICA tax holiday for January and February of next year. This legislation would provide taxpayers with the freedom to use their hard-earned money as they wish. Rather than being forced to bail Wall Street for its bad decision making, taxpayers would be able to pay bills, save for their children's future, decrease their debt, or make purchases of their choosing.
Savings Recovery Act
In April of 2009, Congresswoman Bachmann issued a press statement noting her introduction of the Savings Recovery Act.
Bachmann Introduces Savings Recovery Act Legislation will help Americans rebuild their Retirement, College, and Personal Savings
Washington, D.C., Apr 22, 2009 - U.S. Representative Michele Bachmann (MN-06), member of the House Republican’s Savings Solutions Group, today introduced the Savings Recovery Act along with other members of the working group. The legislation is vital to helping struggling Americans restore and maintain their retirement, college, and personal savings.
“With economic hardships affecting Americans from coast to coast, it’s vital that citizens receive real, workable solutions to help them rebuild their nest eggs,” said Bachmann. “By introducing legislation to help restore Americans’ retirement, college, and personal savings, Republicans are demonstrating once again our commitment to commonsense solutions. We invite Congressional Democrats to join us so that the American people receive the help they so desperately need and the comfort level with our economy that they so deeply crave.”
The Savings Recovery Act, crafted by Rep. Bachmann and members of the House GOP’s Savings Solutions Group, will:
Make it easier for Americans to save more for their retirement by increasing the contribution and catch-up limits for individuals and families.
Restore college savings by extending the existing SAVERs Credit to contributions made to 529 college savings accounts, effectively reducing by up to half the cost of a family’s contribution to the plan.
Increase retirement income by doubling the Social Security earnings limit from $14,160 to $28,320 and allowing more Americans to increase their income without being hit by the Social Security earnings penalty.
Provide tax relief for investors and seniors by immediately suspending the capital gains tax on newly acquired assets for the next two years, raise and index to inflation the amount of capital losses allowed against ordinary income to $10,000, and suspend taxes on dividend income through 2011.
Stabilize worker pensions and helping employers invest in the future by temporarily providing an increased glide path for recognizing losses and two additional years to resolve pension funding shortfalls.
Preserve employee-controlled 401(k)s by blocking efforts to wipe out 401(k)s entirely and replace them with government-run accounts.
Response to Obama Tax Increase
In May of 2009, Congresswoman Bachmann released a press statement noting her opposition to tax increases proposed by the Obama administration.
Bachmann Statement on Obama’s $190 Billion Tax Increase "Obama's tax overhaul is about revenue-raising, not code simplification"
Washington, D.C., May 4, 2009 - U.S. Representative Michele Bachmann (MN-06), a former federal tax attorney and member of the House Financial Services Committee, released the following statement today regarding President Barack Obama’s proposed $190 billion tax increase on American businesses:
“American companies are already burdened with one the highest corporate tax rates in the world—making it increasingly difficult to compete in a global market. And I find it ironic that less than three months after President Obama stood before the employees of Caterpillar in Peoria, Illinois to tout the need for his trillion-dollar-plus ‘stimulus’ spending bill, pointing to Caterpillar’s struggles as representative of the economic struggles our nation, he now proposes a multi-billion dollar tax hike on that very same company and many others like it. President Obama talks about closing loopholes, simplifying the tax code; but this is really about raising revenue to pay for Washington’s spending addiction.
“As a former federal tax attorney, I have witnessed first-hand how the complicated tax code burdens families and small businesses. I am glad to engage in the debate over simplifying the tax code, but I think the goal should be to make things less complicated for taxpayers and to ensure that more Americans can keep more of their hard-earned money. President Obama’s tax overhaul appears to just serve as another fundraiser for his out-of-control spending agenda,” said Bachmann.
The Value Added Tax
In April of 2010, Congresswoman Bachmann wrote an op-ed discussing the possibility of the Value-Added-Tax, and her opposition to such a measure.
Here Comes the Value Added Tax 4/16/2010 | Email Michele Bachmann | All Posts By Blogger
As workers throughout the country sent off their hard-earned money to Uncle Sam on Tax Day yesterday, word is spreading about a new, devastating tax that will do nothing but further cripple our already fragile economy. The Value Added Tax, or VAT, is a consumption tax imposed on all levels of production. While Americans are asking to be taxed less, the government may be taking more.
The Wall Street Journal explains the Value Added Tax this way:
"A VAT is essentially a national sales tax that is assessed at each stage of production, with the bill passed along to consumers at the cash register. In Europe the average rate is a little under 20%. In the U.S., a federal VAT would presumably be levied on top of state and local sales taxes that range as high as 10%. Some nations also exempt food, medicine and certain other goods from the tax.
VATs were sold in Europe as a way to tax consumption, which in principle does less economic harm than taxing income, savings or investment. This sounds good, but in practice the VAT has rarely replaced the income tax, or even resulted in a lower income-tax rate. The top individual income tax rate remains very high in Europe despite the VAT, with an average on the continent of about 46%."
With the passage of the multi-billion dollar health care bill, in addition to already high spending levels, Democrats are drowning our nation in debt. The VAT tax lures Democrat support because with a 10% VAT, a potential for one trillion in revenues could be raised. What Democrats fail to realize is that our already struggling economy will be crippled. Small business owners cannot grow if every product they need has been taxed every step of the way.
One of Obama’s closest economic advisors, Paul Volcker, who was also the former Chairman of the Federal Reserve, said last week, a “VAT should be on the table.” He also said a VAT was “not a toxic idea.”
Volcker isn’t the only notable source floating the idea. According to USA Today, Congressional Budget Office director, Doug Elmendorf, said a VAT is being studied “as part of its ‘strategic planning’ for the future -- one in which the $1.5 trillion budget deficit and $12.5 trillion debt must be addressed by policy makers. ‘Many people in Congress are interested in it,’ Elmendorf said, without specifying who.” The American people are taxed plenty enough as is. Our economy can only recover with fewer taxes, not more.
American Spectator Speech
In November of 2010, Congresswoman Bachmann spoke at the American Spectator Dinner. Although she has not proposed a specifically named plan at this point, she did outline 10 points that she would pursue as President.
Cut federal spending 25 percent, the amount she says spending has increased under President Obama.
Pass the "mother of all repeal bills" that will kill the Democrat's healthcare reform and regulations.
Get the federal government out of the bailout business, especially when it comes to Wall Street and pension plans. This includes returning all money left in the TARP program to the federal coffers to pay down debt.
End involvement in semi-private businesses like Freddie Mac and Sallie Mae.
Make all the Bush tax cuts permanent.
Cut the corporate tax rate of 34 percent to "single digits" to spur growth and job creation.
Kill capital gains taxes.
Zero out the death tax.
Cap personal income taxes at 20 percent.
Propose a "flatter tax" and a tax code no longer than 50-pages "double spaced, with a font size no smaller than 9-point. My guess is that even some of my Democratic colleagues would be able to read that bill."
Support for Extending Tax Cuts for All
In December of 2010, Congresswoman Bachmann released a press statement noting her support for extending the tax cuts for all people.
Bachmann Opposes Democrat Tax Vote
Washington, Dec 2, 2010 -
Congresswoman Michele Bachmann (MN-06), who was not able to be present for today’s House Floor activities due to the serious illness of a close friend, issued the following statement regarding the votes she was expected to miss:
“The proposal by House Democrat leaders to only extend tax cuts for the middle class is not sufficient for our nation’s economy and would not have my support. Our economy desperately needs new jobs, but the President and House Democrats still want to raise taxes on our nation’s job creators. Tax cuts must be extended for all.”
As a former federal tax attorney and leader in the fight against reckless spending, Bachmann also urged her colleagues in the Senate to stand firm on extending the current tax rates for all Americans.
“Additionally,” said Bachman, “I support the expected vote in the House to censure Rep. Charlie Rangel (NY-15). His colleagues found him guilty of eleven ethics violations. This is not honorable behavior for a member of Congress and Mr. Rangel should face censure.”
Reaction to Tax Compromise
In December of 2010, Congresswoman Bachmann released a press statement noting her reaction to the compromise to extend tax cuts and unemployment benefits.
Bachmann Reacts to Tax Compromise
Washington, Dec 7, 2010 - Congresswoman Michele Bachmann (MN-06) released the following statement in light of an apparent deal struck between Republicans and the White House regarding the pending tax hikes:
“Certainty must be provided to individuals, businesses large and small, farmers, and everyone impacted by the tax code. I called for the current tax rates to be made permanent for all Americans, but it appears a compromise for a two-year extension will be the temporary solution.
“It was irresponsible for Congress to adjourn in September and hit the campaign trail without finalizing the tax rates. The American people are tired of uncertainty, and this compromise on a two-year extension for all will at least offer a foundation for job creation for the immediate future.
“As part of the compromise, the President wants to extend unemployment benefits for another 13 months. Unemployment benefits are already at a historical length of 99 weeks, and the President’s request will cost another $56 billion. The President hasn’t indicated any other spending offsets or reductions to pay for these benefits, even though he claims to be committed to reducing the deficit. Our economy doesn’t have a moment to waste and it’s vital that we stop these tax increases now, but we cannot overlook the consequences of another unfunded extension of unemployment benefits. Along with the American people, I anxiously await the final version of the bill that will bring certainty to our nation’s taxpayers.”
Ending Tax Uncertainty
In December of 2010, Congresswoman Bachmann released a statement noting legislation that she had introduced to make the rates within the Bush tax cuts permanent.
Bachmann Introduces Legislation to End Tax Uncertainty
Washington, Dec 15, 2010 - Today Congresswoman Michele Bachmann (MN-06), a former federal tax attorney, introduced legislation to make the current individual income tax rates permanent and stop the massive tax increase that will affect all taxpayers on January 1. Congresswoman Bachmann released the following statement upon introducing the End Tax Uncertainty Act of 2010 (H.R. 6522):
“Instead of providing economic certainty, Congress has been playing politics with the money that belongs in the pockets of hardworking Americans. In mere days, tax hikes will affect all earners unless Congress acts, but President Obama is insistent upon pairing a tax vote with unfunded spending.
“As a small business owner, I know job creators are hesitant to hire more employees without knowing 2011’s tax tables. Washington’s era of uncertainty has existed too long and is simply unjustified. I seek to bring certainty to job creators and American families through the End Tax Uncertainty Act of 2010.
“I am disheartened that President Obama is pushing for a so-called compromise which will only add to our deficit. Now is the opportunity for Congress to lower its deficit while helping job creators, which my bill will do. As the compromise currently stands, I cannot support it,” stated Bachmann.
Bachmann’s legislation also repeals the death tax and gift tax, prevents tax increases on the maximum tax rate for capital gains and dividends income for all Americans, permanently patches the Alternative Minimum Tax and reduces the corporate tax rate to twenty-five percent.
Hannity Appearance
In December of 2010, Congresswoman Bachmann appeared on the Hannity Shown and spoke about her desire to see the AMT repealed and her desire to see the rates established in the Bush tax cuts permanent.
Tax Code Certainty
In December of 2010, Congresswoman Bachmann wrote an op-ed discussing the tax code and the need for certainty in the structure.
Certainty through Tax Code Reform Posted by: Michele Bachmann at 5:21 PM
Uncertainty is in the air this holiday season, as lawmakers are yet to pass legislation preventing Obama’s tax hikes from affecting all taxpayers on January 1, 2011. Even though Congress likely will vote on a tax bill in the next 16 days, more uncertainty is just around the corner.
As a former federal tax attorney, I know our nation’s current tax system is onerous and confusing. The new majority must take a cold hard look at our way of doing business. According to an article in today’s Wall Street Journal, we find ourselves in a perpetual state of temporary tax codes:
“In the late 1990s, there were typically fewer than a dozen tax provisions that had just a limited lease on life and needed to be renewed every year or so.
“Today there are 141.
“Now Congress, taking up a deal worked out between the Obama administration and Republican leaders, is poised to turn the whole personal income-tax system into something of a temporary structure. The plan embraces a broad range of provisions—an extension of Bush-era rates, a new estate-tax formula—but for only two years. A payroll-tax cut in the bill is for a single year.
“This means that if the compromise passes largely intact, the U.S. will have no permanent regime governing levies on salaries, capital gains and dividends, the Social Security tax, as well as a slew of targeted breaks for families, students and other groups. This on top of dozens of corporate-tax provisions that already were subject to annual renewal.
“The level of uncertainty, unusual for developed nations, complicates planning and discourages hiring and investment, many economists and corporate executives say.”
Our founding fathers never intended a larger-than-life government manipulating our very economy via the tax code. We can start to reverse this course by focusing on pro-growth measures that will provide needed certainty to businesses and families. The 112thCongress should consider cutting the corporate tax rate to make it more attractive for businesses seeking to operate in the industrialized world. I would also like to see the zeroing out of capital gains taxes. Then, let’s reduce all marginal personal income tax rates for individuals and start debate on ending the death tax. Better yet, given our nation’s dire economic situation, let’s begin a serious discussion about whether or not to scrap the current tax code and replace it with a fairer, flatter tax code. I think Americans would appreciate slashing the tax code to a fraction of its current length of more than 50,000 pages.
The American people have given Republicans a second chance. In the 112th Congress, it is my desire to see Congress bring greater simplicity to our tax policy. As a small business owner myself I know a pro-growth economy is possible and one place to start is through tax code certainty for small businesses, corporations and families.
Tax Hikes are Not the Solution
In April of 2010, Congresswoman Bachmann wrote an op-ed discussing President Obama's proposed budget and the tax increases that would result from such spending.
Obama's Tax Hikes are Not the Solution Posted by: Michele Bachmann at 12:34 PM
When President Obama was sworn into office more than two years ago, he took out an unlimited credit card in the name of the American taxpayer and immediately proceeded to charge a trillion-dollar stimulus that failed to hold unemployment below 8 percent, as the White House promised.
In February, President Obama proposed a budget with $8.7 trillion in new spending, despite the fact our nation is already more than $14 trillion in debt and increasing daily. Instead of fulfilling a promise made while vying for the White House to cut the U.S. deficit in half in his first term, he presented a budget that kept the U.S. on the same, unsustainable fiscal road.
Last week, House Republicans introduced a real budget proposal that reduces deficits by more than $4 trillion over the next decade. It introduces real reforms to get our fiscal house in order and actually pay off the debt before our children and grandchildren are stuck with our spending bill.
But yesterday, President Obama offered empty, political rhetoric to the American people. Suddenly he’s feigning outrage against the current debt levels and the out-of-control spending. He thinks taxing those making over $250,000 will solve our budget woes and create jobs. It won’t. The President is just singing the second verse of his same old song.
If President Obama was serious about saving the taxpayer money, he would have started asking for cuts two years ago.
Higher Taxes is Not Always Higher Revenues
In April of 2011, Congresswoman Bachmann appeared on the Today Show and discussed possible tax increases. She stated that higher tax rates did not necessarily lead to higher revenues. She notes that you could confiscate all the money earned by the highest earners and still would not fund the government for more than one month.
Western Debate
In October of 2011, Congresswoman Bachmann participated in the Western Debate in Las Vegas. She was asked about whether or not she supported a fair tax and stated that she did not support giving the federal government another revenue stream. She stated that a sales tax would be or lead to a value-added tax.
QUESTION: This is for all candidates. What's your position on replacing the federal income tax with a federal sales tax?
COOPER: I'll direct that to Congresswoman Bachmann. You've been very critical of Herman Cain's 9-9-9 plan, which calls for a 9 percent sales tax, a 9 percent income tax, and 9 percent corporate tax. In fact, you've said it would destroy the economy. Why?
BACHMANN: Well, I am a former federal tax litigation attorney. And also, my husband and I are job-creators.
One thing I know about Congress, being a member of Congress for five years, is that any time you give the Congress a brand-new tax, it doesn't go away. When we got the income tax in 1913, the top rate was 7 percent. By 1980, the top rate was 70 percent. If we give Congress a 9 percent sales tax, how long will it take a liberal president and a liberal Congress to run that up to maybe 90 percent? Who knows?
What I do know is that we also have to be concerned about the hidden tax of the value-added tax, because at every step and stage of production, you'd be taxing that item 9 percent on the profit. That's the worry.
In my plan -- again, that's a tax plan, it's not a jobs plan -- my plan for economic recovery is real jobs right now. I have a tax plan. I have a jobs plan. I have an energy plan and a plan to really turn this country around and create millions of high-paying jobs.
COOPER: Mr. Cain, a lot of prominent conservatives now are coming forward saying that your 9-9-9 plan would actually raise taxes on middle-class voters, on lower-income voters.
CAIN: The thing that I would encourage people to do before they engage in this knee-jerk reaction is read our analysis. It is available at hermancain.com. It was performed by Fiscal Associates. And all of the claims that are made against it, it is a jobs plan, it is revenue-neutral, it does not raise taxes on those that are making the least. All of those are simply not true.
The reason that my plan -- the reason that our plan is being attacked so much is because lobbyists, accountants, politicians, they don't want to throw out the current tax code and put in something that's simple and fair. They want to continue to be able to manipulate the American people with a 10-million-word mess.
Let's throw out the 10-million-word mess and put in our plan, which will liberate the American workers and liberate American businesses.
...
COOPER: I want to bring in Congresswoman Bachmann since she was referenced by you.
BACHMANN: But Anderson, how do you not have a value-added tax? Because at every level of production you have a profit, and that profit gets taxed, because you produce one portion at one level, and then you take it to the next supplier or vendor at the next level, and you have an exchange. That is a taxable event.
And ultimately, that becomes a value-added tax. It's a hidden tax. And any time the federal government needs revenue, they dial up the rate and the American people think that it's -- that it is the vendor that creates the tax, but it's the government that creates the tax.
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COOPER: Congresswoman Bachmann, you said in the last debate that everyone should pay something. Does that mean that you would raise taxes on the 47 percent of Americans who currently don't pay taxes?
BACHMANN: I believe absolutely every American benefits by this magnificent country. Absolutely every American should pay something, even if it's a dollar.
(CHEERING AND APPLAUSE)
BACHMANN: Everyone needs to pay something in this country. That's why with my tax plan, I take a page out of not theory but what's provable and what works. What is provable and what works was the economic miracle that was wrought by Ronald Reagan in the 1980s. That's the plan that I look at.
I also want to completely abolish the tax code. I want to flatten the tax for all of Americans, simplify that tax for all of Americans. And that creates job growth, which is exactly what we need to have.
Because to be able to fuel the fire for this economy, again, it is the tax code, but it doesn't end with the tax code. It's the regulatory burden that costs us $1.8 trillion every year, but it's more than that cost. It's jobs that are lost.
So we need to repeal "Obama-care," repeal the jobs and housing destruction act known as Dodd-Frank. President Obama's plan has been a plan for destruction of this economy and failure.
COOPER: Thank you.
BACHMANN: I plan to change that with real jobs right now at michelebachmann.com.
Dartmouth Debate
On October 11, 2011 Congresswoman Bachmann participated in the Dartmouth debate. She discusses her opposition to a sales tax in that it is a new revenue stream that will never go away.
GOLDMAN: But, Congresswoman Bachmann, you’re a former IRS lawyer, do you agree?
BACHMANN: I would have to say that the 9-9-9 plan isn’t a jobs plan, it is a tax plan. And I would say that from my experience being in Congress, but also as a federal tax lawyer, when you - the last thing you would do is give Congress another pipeline of a revenue stream. And this gives Congress a pipeline in a sales tax.
A sales tax can also lead to value-added tax. The United States Congress put into place the Spanish-American War tax in 1888. We only partially repealed that in 2006. So once you get a new revenue stream, you are never going to get rid of it.
And one thing I would say is, when you take the 999 plan and you turn it upside down, I think the devil is in the details.
Michigan Economic Debate
On November 10, 2011 Congresswoman Bachmann participated in the Michigan economic debate. She discussed taxes there and stated that higher taxes leads to less jobs.
BARTIROMO: Congresswoman Bachmann, same question to you. How can you create jobs as quickly as possible?
BACHMANN: Well, I think one thing that we know is that taxes lead to jobs leaving the country. All you need to know is that we have the second highest corporate tax rate in the world.
And if you go back to 1981, and you look around the world, we had a lot of high corporate tax countries. It was 47 percent on average on a lot of countries across the world.
But if you look today in the United States, we have an effective rate if you average in state taxes, with federal taxes, of about 40 percent. But the world took a clue, because capital is mobile, and capital went to places where corporate tax rates went to 25 percent and falling.
We're still stuck in a 1986 era of about a 40 percent tax rate. We have to lower the tax rate because it's a cost of doing business, but we have to do so much more than that.
Our biggest problem right now is our regulatory burden. The biggest regulatory problem we have is Obamacare and Dodd/Frank. I will repeal those bills. I have written those bills to repeal those bills that have got to go. But beyond that --
(APPLAUSE)
BACHMANN: But beyond that, we have to legalize American energy. And here is something else that we have to do that will help the economy. We have to build the fence on America's southern border and get a grip on dealing with our immigration problem.
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BACHMANN: Well, I would say President Obama is the one that's wrong, because President Obama's plan for job creation has absolutely nothing to do with the true people who know how to create jobs. He should really be going to job-creators if he wants to know how to create jobs. Instead, he continues to go to a General Axelrod in Chicago to look for his orders to figure out how to deal with the economy. That won't work.
We know what needs to be done. We have a real problem. When you have 53 percent of Americans paying federal income taxes, but you have 47 percent of Americans who pay no federal income taxes, you have a real problem.
And that's why in my tax plan, I have everyone paying something because everyone benefits by this magnificent country. So even if it means paying the price of two Happy Meals a year, like $10, everyone can afford to pay at least that.
And what it does is create a mentality in the United States that says that freedom is free. But freedom isn't free. We all benefit. We all need to sacrifice. Everybody has to be a part of this tax code.
Official Website Statements
Taxes
Taxes are simply too high, and American families have less money to spend on their priorities. Rather than taking money from the hands of the middle class to pay for a large, overbearing federal government, I believe in letting hard-working taxpayers keep more of what they earn. This would help strengthen our economy, stimulate job growth and force the government to make wiser spending decisions – all of which would benefit American families.
I have cosponsored several bills to provide tax relief to hard-working Americans, including bills to repeal the estate tax, reduce capital gains taxes, repeal the alternative minimum tax (AMT), extend the adoption tax credit, and, make permanent other important tax relief passed by Congress in 2001 and 2003. Families and businesses can rest assured I will continue to support efforts to reduce taxes and put more money back in the pockets of American workers.
Also, as a small business owner, I understand the need to protect our nation’s small businesses and create opportunities for growth and economic prosperity. I believe that less taxation and government regulation of private companies will continue to make America the best place in the world to do business. For instance, the devastating effects of the death tax are suffered most by family owned small businesses and their employees. Eliminating the death tax is one way Congress can help American family-owned businesses and family farms expand opportunity, create jobs and stimulate the economy.
I am also a cosponsor of legislation to create Association Health Plans (AHPs) which would allow small businesses to join together through trade associations to purchase lower cost health insurance for their workers. This legislation would increase small businesses’ bargaining power with health care providers, give them freedom from costly state-mandated benefit packages, and lower their overhead costs by as much as 30 percent. These are all benefits that many large corporations and unions already have because of their larger economies of scale, and it’s time to give this same benefit to smaller businesses.
In my work as a former federal tax attorney, I saw firsthand that our nation’s tax laws are hard to understand and undermine the country’s prosperity by imposing needlessly harsh penalties on work, savings, and investments. There are commonsense standards that should govern our nation’s tax system such as simplicity, fairness, and efficiency. Unfortunately, those standards are far from being met and the U.S. tax code continues to result in a complicated mess for taxpayers every year. Simplification of the tax code must be a priority.
Wasteful Spending
Each year the federal government spends trillions of dollars, billions of which are wasted on duplicative, inefficient, or ineffective government-run programs. So far this year, the House has passed more than $950 billion in new government spending. Congress simply must show the American people it is serious about protecting their hard-earned tax dollars and should adhere to more responsible budgeting that millions of Minnesota’s families practice every month.
We also must instill accountability throughout the appropriations process and shed more light on taxpayer spending for congressional “earmark” projects. I have taken a bipartisan pledge to not seek any earmarks this year and am working with like-minded Republicans and Democrats to reform this system which has become little more than a political favor factory at taxpayer expense. I am also a cosponsor of H. Res. 479 which would ensure all earmarks, including those in tax and authorizing bills, are disclosed to the public and subject to being challenged on the House floor. And I am a cosponsor of legislation which would authorize a “presidential line item veto,” a tool which would allow the President to identify wasteful and reckless spending provisions in legislation and cut them out.
I believe it is critical that we restore the faith of the American taxpayers and have introduced legislation, H.R. 3958, the Truth in Accounting Act, to require the government to fully disclose its long-term, unfunded spending obligations – money Congress has already agreed to spend in future years. In addition to the annual budget deficit, this number will tell us how much Congress must reform current policies to put us back on a sustainable fiscal track for today’s and future generations
Campaign Website Statements
Taxes and the Economy
In July 2009, our country’s budget deficit topped $1 trillion for the first time in our nation’s history. Our nation’s debt stands near $11.5 trillion – another record for Uncle Sam. Meanwhile, unemployment numbers woefully surpassed administration estimates in June and now sit at 9.5%. And to make matters worse, at the end of May 2009, the U.S. government owed China $801.5 billion.
While the White House has been successful so far in pushing through its agenda – cap and trade national energy tax, the government-run, the $1.1-trillion “stimulus” package, and the $400-billion pork-laden omnibus spending package – our economic options for addressing the recession are being quickly foreclosed.
I am a cosponsor of the REBOUND Act to reduce the deficit and promote real economic recovery. This fiscally responsible measure will recall the $460 billion in unspent “stimulus” moneys while leaving intact the package’s tax relief and unemployment benefits. Furthermore, instead of recycling money repaid from the Wall Street bailout into a new spending slush fund – as the Democrats proposed, the REBOUND Act will require all Wall Street repayments to go exclusively to debt reduction.
Every responsible American family knows that you pay back your loans before you take out new ones. Unfortunately, Washington needs to be reminded. It’s time Congress stop talking about tough decisions and start making them.
Voting Record
Alternative Minimum Tax Relief Act of 2008
The Alternative Minimum Tax was created to tax wealthy individuals who were exploiting loopholes to avoid paying taxes. It was not indexed to inflation and now affects many more families than it was intended. Congress regularly applies "fixes" to the law in the form of yearly adjustments. Sometimes they attempt to repeal it completely. In 2008, the house voted on the Alternative Minimum Tax Relief Act of 2008. The bill was had the objectives of increasing and extending through 2008 the alternative minimum tax (AMT) exemption amounts, and extending through 2008 the offset of certain nonrefundable personal tax credits against regular and AMT tax liability. This change would have brought in less revenue and that was to be offset by lowering the tax deductions for oil companies. The bill was supported by most Democrats and opposed by most Republicans. While it passed the house, it never came up for a vote in the Senate. Michele Bachmann voted against the Alternative Minimum Tax Relief Act of 2008.
Michele Bachmann voted against the Alternative Minimum Tax Relief Act of 2008.
AMT Relief Act of 2007
The AMT Relief Act of 2007 sought to apply a fix to the AMT, and offset those costs by taxing gross income from overseas companies. Most Democrats supported the legislation and most Republicans opposed it and the bill passed the house, but was not brought up for a vote in the Senate. Michele Bachmann voted against the AMT Relief Act of 2007.
Michele Bachmann voted against the AMT Relief Act of 2007.
Tax Increase Prevention Act of 2007
In 2007, congress passed legislation to apply a temporary fix. Most Democrats supported the legislation and all Republicans opposed it on the grounds that it violated PAYGO. Michele Bachmann voted against the Tax Increase Prevention Act of 2007.
Michele Bachmann voted against the Tax Increase Prevention Act of 2007.
Makes permanent: (1) the Economic Growth and Tax Relief Reconciliation Act of 2001; (2) provisions of the Jobs and Growth Tax Relief Reconciliation Act of 2003 that reduce income tax rates on dividend and capital gains income; and (3) the repeal of the estate, gift, and generation-skipping transfer taxes. Amends the Internal Revenue Code to: (1) repeal the alternative minimum tax (AMT) on individual taxpayers; and (2) reduce to 25% the maximum income tax rate on corporations, including personal service corporations.
Makes permanent the reductions in the dividend and capital gain tax enacted by the Jobs and Growth Tax Relief Reconciliation Act of 2003.Amends the Internal Revenue Code to: (1) reduce individual and corporate income tax rates; (2) repeal the alternative minimum tax for individual taxpayers; (3) allow inflation adjustments to the basis of capital assets in determining gain or loss; (4) reduce the capital gains tax rate for corporations; (5) repeal limitations on the expensing allowance for depreciable business assets; (6) make permanent the tax credit for increasing research activities; (7) extend the carryback period for net operating losses to seven years; (8) increase the child tax credit; (9) exclude from gross income in 2009 distributions from an individual retirement plan (IRA) and exempt IRAs from mandatory distribution requirements after 2009; and (10) increase the tax deductions for tuition and related expenses and for the interest on qualified education loans.Makes 1% across-the-board rescissions in non-defense discretionary spending for FY2009.
To amend the Internal Revenue Code of 1986 to repeal the alternative minimum tax on individuals and replace it with an alternative tax individuals may choose.
To suspend the capital gains tax, schedule the government-sponsored enterprises for privatization, repeal the Humphrey-Hawkins Full Employment Act, and suspend mark-to-market accounting requirements, and for other purposes.
Makes permanent: (1) the Economic Growth and Tax Relief Reconciliation Act of 2001; (2) provisions of the Jobs and Growth Tax Relief Reconciliation Act of 2003 that reduce income tax rates on dividend and capital gains income; and (3) the repeal of the estate, gift, and generation-skipping transfer taxes. Amends the Internal Revenue Code to: (1) repeal the alternative minimum tax (AMT) on individual taxpayers; and (2) reduce to 25% the maximum income tax rate on corporations, including personal service corporations.
Amends the Internal Revenue Code to: (1) reduce the maximum corporate income tax rate to 25%; (2) increase the expensing allowance for depreciable business assets to $250,000 in 2008 and 2009; (3) increase to 50% the current year bonus depreciation allowance for certain property placed in service in 2008 and 2009; and (4) allow additional carrybacks for certain net operating losses and for excess business and foreign tax credit amounts arising in 2008 and 2009.
Amends the Internal Revenue Code to: (1) repeal the dollar and other limitations on the expensing allowance of depreciable business assets; (2) reduce to 25% the maximum corporate income tax rate; (3) provide for an inflation adjustment to the basis of certain capital assets for purposes of determining gain or loss; and (4) reduce from 35 to 15% the alternative capital gains tax rate for corporations.
Amends the Internal Revenue Code to establish, on a permanent basis, a zero percent tax rate for the net capital gains of individuals and corporations for purposes of the regular and alternative minimum tax. Eliminates the terminating date in the Jobs and Growth Tax Relief Reconciliation Act of 2003 (i.e., December 31, 2008) for provisions that reduce the capital gains tax rate for individuals.
