Jeb Hensarling on Taxes

Last Updated : Aug 09, 2010

Summary

Congressman Hensarling supports a Fair Tax system which replaces the income tax and other taxes with a consumption tax and has co-sponsored legislation to enact that law. He opposes an estate tax, and the marriage penalty. He voted for portions of the Bush Tax cuts and was not in office for others.

Congressman Hensarling supports a balanced budget amendment and has co-sponsored legislation to enact it.

 

Opposition to Estate Tax

 

Opposition to debt and deficits

In February of 2010, Congressman Hensarling spoke about the dangers of deficits and the increased amounts of deficits that have been achieved under the Democratic Congress.

In April of 2010, Congressman Hensarling spoke about the Greece debt crisis at the House Financial Services subcommittee hearing on sovereign debt and credit default swaps.

 

Opposition to raising debt limit

In February of 2009, Congressman Hensarling spoke about his opposition to raising the debt limit and violation of PAYGO rules.

 

Deficits under Bush and Obama

In January of 2010, Congressman Hensarling spoke about his the deficits under President Bush and President Obama and the control of congress under Democrats and Republicans.

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. Jeb Hensarling voted against the Alternative Minimum Tax Relief Act of 2008.

Jeb Hensarling 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. Jeb Hensarling voted against the AMT Relief Act of 2007.

Jeb Hensarling 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. Jeb Hensarling voted against the Tax Increase Prevention Act of 2007.

Jeb Hensarling voted against the Tax Increase Prevention Act of 2007.

Tax Relief and Health Care Act of 2006

The Tax Relief and Health Care Act of 2006 was passed into law in 2006 and contained a wide array of tax cut extensions for everything from making improvements to your house, to state and local sales tax exemptions, and to make improvements to DC. It also contained a provision for health savings accounts. The bill got wide support and passed the house with about 25% of Democrats opposing it. Jeb Hensarling voted in favor of the Tax Relief and Health Care Act of 2006.

Jeb Hensarling voted in favor of the Tax Relief and Health Care Act of 2006.

Pension Protection Act of 2006

The Pension Protection Act of 2006 addressed regulations governing employer-sponsored pensions and acted to make the portions of the 2001 act which allowed higher contributions to IRAs. with the support of both parties. The bill got wide support from both parties and passed 279-131. Jeb Hensarling voted against the Pension Protection Act of 2006.

Jeb Hensarling voted against the Pension Protection Act of 2006.

Tax Increase Prevention and Reconciliation Act of 2005

The Tax Increase Prevention and Reconciliation Act of 2005 extended previously lowered dividend income and capital gains through 2010, and made an increase to the AMT exemption. It also eliminated income restrictions on high-income taxpayers for converting traditional Individual Retirement Accounts (IRAs) to Roth IRAs. Most Republicans supported the legislation and about 1/3 of teh Democrats supported it. The bill passed in a 234-197 vote with the support of both parties. Jeb Hensarling voted in favor of the Tax Increase Prevention and Reconciliation Act of 2005.

Jeb Hensarling voted in favor of the Tax Increase Prevention and Reconciliation Act of 2005.

Working Families Tax Relief Act of 2004

The Working Families Tax Relief Act of 2004 extended the 10 percent bracket on income tax created in the 2001 legislation, doubled the child tax credit, extended the previous AMT exemption and the Work Opportunity Tax Credit. The legislation was widely supported and passed 339-65. Jeb Hensarling voted in favor of the Working Families Tax Relief Act of 2004.

Jeb Hensarling voted in favor of the Working Families Tax Relief Act of 2004.

American Jobs Creation Act of 2004

The American Jobs Creation Act of 2004 allowed individuals to claim a deduction for state and local sales taxes paid, in lieu of deducting state income taxes. It also increased tax credits for business investment abroad, and temporarily increased the expensing provisions for corporations. The bill passed 251-178 with the support and opposition of both parties. Jeb Hensarling voted in favor of the American Jobs Creation Act of 2004.

Jeb Hensarling voted in favor of the American Jobs Creation Act of 2004.

A bill to end the marriage penalty

In 2004, the house voted on a bill to fix the marriage penalty tax. The bill increased the standard deduction for married taxpayers and increased the deducitons for the 15 percent bracket. The bill got wide support in the vote and passed with only 1/3 of the Democrats opposing it. The bill was not brought up for a vote in the Senate. Jeb Hensarling voted in favor of ending the marriage penalty.

Jeb Hensarling voted in favor of ending the marriage penalty.

Jobs and Growth Tax Relief Reconciliation Act of 2003

In the Jobs and Growth Tax Relief reconciliation Act of 2003 tax rates on realized capital gains received by individual shareholders were reduced from 10 percent (for taxpayers in tax brackets where the ordinary income tax rate was 15 percent or below) and 20 percent (for all other brackets) to 5 percent and 15 percent, respectively, through 2007 and to 0 and 15 percent in 2008. It also adjusted the AMT exemption limit, expanded the child tax credit, and accelerated some of the earlier aspects of the previous laws. The bill was supported by Republicans and opposed by Democrats, and passed in a 222-203 vote. Jeb Hensarling voted in favor of the Jobs and Growth Tax Relief Reconciliation Act of 2003.

Jeb Hensarling voted in favor of the Jobs and Growth Tax Relief Reconciliation Act of 2003.

 

Sponsored and Cosponsored Legislation

Session-111; Bill Number-H R 25; Fair Tax Act of 2009 - Cosponsor

Repeals the income tax, employment tax, and estate and gift tax. Imposes a national sales tax on the use or consumption in the United States of taxable property or services. Sets the sales tax rate at 23% in 2011, with adjustments to the rate in subsequent years. Allows exemptions from the tax for property or services purchased for business, export, or investment purposes, and for state government functions. Prohibits the funding of the Internal Revenue Service (IRS) after FY2013. Terminates the sales tax imposed by this Act if the Sixteenth Amendment to the U.S. Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this Act.

Session-110; Bill Number-H R 25; Fair Tax Act of 2007 - Cosponsor

Repeals the income tax, employment tax, and estate and gift tax. Imposes a national sales tax on the use or consumption in the United States of taxable property or services. Sets the sales tax rate at 23 percent in 2009, with adjustments to the rate in subsequent years. Allows exemptions from the tax for property or services purchased for business, export, or investment purposes and for state government functions. Allows families a sales tax rebate. Prohibits the funding of the Internal Revenue Service (IRS) after FY2011.

Session-109; Bill Number-H R 25; Fair Tax Act of 2005 - Cosponsor

Repeals the income tax, employment tax, and estate and gift tax. Imposes a national sales tax on the use or consumption in the United States of taxable property or services. Sets the sales tax rate at 23 percent in 2007, with adjustments to the rate in subsequent years. Allows exemptions from the tax for property or services purchased for business, export, or investment purposes and for State government functions. Allows families a sales tax rebate. Grants States the primary authority for the collection of sales tax revenues and the remittance of such revenues to the Treasury. Prohibits the funding of the Internal Revenue Service (IRS) after FY 2009. Establishes in the Department of the Treasury: (1) an Excise Tax Bureau to administer excise taxes not administered by the Bureau of Alcohol, Tobacco and Firearms (ATF); and (2) a Sales Tax Bureau to administer the national sales tax.

Session-111; Bill Number-H R 470; Economic Recovery and Middle-Class Tax Relief Act of 2009 - Cosponsor

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.

Session-111; Bill Number-H R 205; Death Tax Repeal Act - Cosponsor

Repeals the federal estate, gift, and generation-skipping transfer taxes.

Session-111; Bill Number-H R 25; Fair Tax Act of 2009 - Cosponsor

Repeals the income tax, employment tax, and estate and gift tax. Redesignates the Internal Revenue Code of 1986 as the Internal Revenue Code of 2009. Imposes a national sales tax on the use or consumption in the United States of taxable property or services. Sets the sales tax rate at 23% in 2011, with adjustments to the rate in subsequent years. Allows exemptions from the tax for property or services purchased for business, export, or investment purposes, and for state government functions. Sets forth rules relating to: (1) the collection and remittance of the sales tax; and (2) credits and refunds. Allows a monthly sales tax rebate for families meeting certain size and income requirements.

Session-110; Bill Number-H R 2380; Death Tax Repeal Permanency Act of 2007 - Cosponsor

To make the repeal of the estate tax permanent.

Session-110; Bill Number-H R 2734; Tax Increase Prevention Act of 2007 - Cosponsor

To make the Economic Growth and Tax Relief Reconciliation Act of 2001 and certain other tax benefits permanent law.

Session-110; Bill Number-H R 1586; Death Tax Repeal Act of 2007 - Cosponsor

Repeals the federal estate, gift, and generation-skipping transfer taxes.

Session-110; Bill Number-H R 3818; Taxpayer Choice Act of 2007 - Cosponsor

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.

Session-110; Bill Number-H R 7223; Free Market Protection Act of 2008 - Prime Sponsor

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.

Session-110; Bill Number-H R 4995; Middle Class Jobs Protection Act of 2008 - Cosponsor

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.

Session-110; Bill Number-H R 5109; Economic Growth Act of 2008 - Cosponsor

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.

Session-110; Bill Number-H R 5908; Zero percent tax rate for the net capital gains - Cosponsor

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.

Session-109; Bill Number-H R 2121; Generate Retirement Ownership Through Long-Term Holding Act of 2005 - Cosponsor

Amends the Internal Revenue Code to provide that no gain shall be recognized on the receipt of a capital gain dividend distributed by a regulated investment company if such dividend is automatically reinvested in additional shares of the company pursuant to a dividend reinvestment plan.

Session-111; Bill Number-H R 782; Taxpayer Choice Act of 2009 - Cosponsor

Amends the Internal Revenue Code to: (1) repeal the alternative minimum tax on individual taxpayers after 2008; and (2) allow taxpayers to elect an alternative income tax system. Makes permanent the capital gains and dividends rate reductions enacted by the Jobs and Growth Tax Relief Reconciliation Act of 2001.

Session-110; Bill Number-H R 2312; To make permanent the individual income tax rates for capital gains and dividends. - Cosponsor

Repeals the termination date in the Jobs Growth Tax Relief Reconciliation Act of 2003 for provisions reducing individual tax rates on capital gains and dividend income.

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