Ron Paul on Taxes

Last Updated : Jan 15, 2012

Summary

Congressman Paul is a strong advocate for reforming the tax system and lowering the overall tax burden on the American people. At a tax day speech in 2010, Congressman Paul stated that taxes were equivalent to stealing from the citizens and were a symptom of a runaway government. Congressman Paul often states that he opposes the view that all revenue is owned by the government and that it allows citizens to keep certain amounts. He states that all taxes beyond minimal government spending is stealing and minimum government spending is defined by the constitution. Taxes should therefore be limited to paying for only those actions constitutionally defined.

In 2005 Congressman Paul argued for the ability of citizens of states with sales taxes instead of income taxes to deduct those sales taxes from the federal government income tax. He states that not being able to deduct these taxes puts states on an unequal footing with states with income taxes whose citizens can deduct those taxes.

Throughout that year, Congressman Paul argued against tax reform that did not include lowering of tax rates or elimination of taxes. He stated that doing anything else was equivalent to a political shell game that pits taxpayers against each other in a lobbying scramble to make sure the other guy pays.

In addition to overall lowering of tax rates, one tax that Congressman Paul has specifically sought to end is the death tax. He has stated that the death tax is an especially galling form of double taxation as Americans already pay federal and state income taxes, capital gains taxes, local property taxes, sales taxes, and federal taxes on items like gasoline and telephone use, yet the government still seeks to tax money that people manage to save after paying these taxes. He has stated that the estate tax raises little money and exists based solely on the politics of fearing dynastic families. He quoted a scholar by stating that the estate tax does four things-- discourages savings and investment, undermines job creation and wage growth, stifles investment, and contradicts a central premise of American life, namely, building wealth and “getting ahead.” He has co-sponsored legislation to repeal the death tax.

Congressman Paul has also argued for the removal of the Alternative Minimum Tax (AMT). He notes that the source of the tax - that large portions of the population were escaping paying taxes - is false and that the government should be able to dictate how much of a citizen's earnings they can keep based upon the income the government believes is appropriate.

Congressman Paul supports the Fair Tax in theory, as a sales tax is less susceptible to manipulation and loopholes. However, he notes that installing a sales tax without repealing the 16th amendment (the income tax) would only lead to a scenario where both the sales tax and the income tax are enforced.

As part of his 2012 Presidential campaign, Congressman Paul has stated that once the federal government is properly limited, he would move to end the income tax and abolish the IRS, along with the capital gains tax, and the estate tax.

 

Sales Tax Deduction

In February of 2005, Congressman Paul released a press statement noting his support for making the deductions for state sales tax permanent.

In October of 2007, Congressman Paul issued a press statement noting his support for fairness in the tax system for states that have a sales tax.

 

Tax Reform is a Shell Game

In March of 2005, Congressman Paul used his "Texas Talk" to address the discussions concerning tax reform. He notes that the concept of the sales tax is not likely to happen as an income tax would likely come back if the 16th amendment wasn't repealed.

 

Simpler Tax Code

In October of 2005, Congressman Paul used his "Texas Talk" to note that no one opposes a simpler tax system with the exception of those in Washington.

 

Death Tax Repeal

In October of 2005, Congressman Paul used his "Texas Talk" to address the need to repeal the estate tax.

 

Numerous Permanent Tax Cuts

In December of 2005, Congressman Paul released a press statement noting his support for making numerous tax cuts permanent.

 

Tax Relief Extension Reconciliation Act

In May of 2006, Congressman Paul released a press statement noting his support for the Tax Relief Extension Reconciliation Act.

 

Why Won't Congress End the Estate Tax

In June of 2006, Congressman Paul used his "Texas Talk" to ask why congress won't end the estate tax.

 

Taxes and Spending are the Real Problem

In October of 2006, Congressman Paul used his "Texas Talk" to discuss the problems associated with spending and taxes.

 

Right Start Child Care and Education Act

In September of 2007, Congressman Paul issued a press statement noting his support for the Right Start Child Care and Education Act.

 

Taxpayer Choice Act of 2007

In October of 2007, Congressman Paul released a press statement noting his support for the Taxpayer Choice Act of 2007.

 

The Estate Tax

In October of 2007, Congressman Paul used his "Texas Talk" to address the estate tax and the need to end it.

 

The AMT

In November of 2007, Congressman Paul used his "Texas Talk" address to discuss the need to end the Alternative Minimum Tax.

 

The Family Farm, Small Business, and Home Tax Relief Act

In November of 2007, Congressman Paul released a press statement noting his introduction of the Family Farm, Small Business, and Home Tax Relief Act.

 

Capital Gains Real Estate Exemption

In November of 2007, Congressman Paul issued a press statement noting his introduction of legislation to allow a capital gains exemption for real estate.

 

The True Cost of Taxing and Spending

In November of 2007, Congressman Paul used his "Texas Talk" to discuss what he called the true cost of taxing and spending.

 

Property Tax Deducation for All Act

In December of 2007, Congressman Paul released a press statement noting his support for legislation to allow a deduction for the property tax.

 

Lower Taxes for Stimulus

In April of 2009, Congressman Paul used his "Texas Talk" address to discuss the possibility of lowering taxes to help spur the economy.

 

Tax Day Speech

On April 15, 2010 Congressman Paul spoke at the Freedom Works Foundation about his desire to end the Fed and the IRS.

 

Homeowner Tax Credit Extension and Expansion Act

In May of 2010, Congressman Paul released a press statement noting his support for the Homeowner Tax Credit Extension and Expansion Act.

 

The Income Tax

 

Weekly Address on Taxes

 

Questions during the Debate

 

Distorting the Tax Policy Debate

In December of 2010, Congressman Paul used his "Texas Talk" to discuss what he called distortion of the tax policy debate.

 

The Western Debate

In October of 2011, Congressman Paul participated in the Western Debate in Las Vegas. He was asked about Herman Cain's 9-9-9 plan and calls it dangerous to give the federal government another tax stream. He also states that he would like to see the income tax done away with completely.

 

Campaign Website Statements

 

2012 Presidential Campaign Website Statements

 

Michigan Economic Debate

On November 10, 2011 Congressman Paul participated in the Michigan Economic Debate. He spoke there about international debt, US debt, and the housing industry. He also states that spending is a tax.

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. Ron Paul voted against the Alternative Minimum Tax Relief Act of 2008.

Ron Paul 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. Ron Paul cast a "No Vote"

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. Ron Paul cast a "No Vote"

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. Ron Paul cast a "No Vote"

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. Ron Paul voted against the Pension Protection Act of 2006.

Ron Paul 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. Ron Paul voted in favor of the Tax Increase Prevention and Reconciliation Act of 2005.

Ron Paul 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. Ron Paul voted in favor of the Working Families Tax Relief Act of 2004.

Ron Paul 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. Ron Paul voted in favor of the American Jobs Creation Act of 2004.

Ron Paul 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. Ron Paul voted in favor of ending the marriage penalty.

Ron Paul 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. Ron Paul voted in favor of the Jobs and Growth Tax Relief Reconciliation Act of 2003.

Ron Paul voted in favor of the Jobs and Growth Tax Relief Reconciliation Act of 2003.

Job Creation and Worker Assistance Act of 2002

The main provision of the Job Creation and Worker Assistance Act of 2002 was to create a bonus depreciation. This bonus depreciation allowed firms to claim extra deductions for depreciation of a long-term physical capital investment during the early years. This reduces corporate profits and therefore taxes. The act was supported by Republicans and opposed by Democrats 85-9. Ron Paul voted in favor of the Job Creation and Worker Assistance Act of 2002.

Ron Paul voted in favor of the Job Creation and Worker Assistance Act of 2002.

Death Tax Elimination Act of 2001

In 2001, the house voted on legislation to end the "Death Tax", otherwise known as the Estate Tax, which applies a tax to estates large than a given amount. The bill passed the house with the support of almost all Republicans and about 1/4 of the Democrats. Ron Paul voted in favor of the Death Tax Elimination Act of 2001.

Ron Paul voted in favor of the Death Tax Elimination Act of 2001.

Economic Growth and Tax Relief Reconciliation Act of 2001

The first piece of legislation was passed in 2001 as the Economic Growth and Tax Relief Reconciliation Act of 2001 The act was especially sweeping. Its two most prominent changes were a phased-in reduction in income tax rates and a reduction and eventual repeal (at the beginning of 2010) of the estate tax. It also provided a wide range of tax breaks for education, families with children, married couples, and contributions to certain kinds of savings accounts. While all republicans voted in favor of this legislation, most democrats opposed it. Ron Paul voted in favor of the EGTRRA of 2001.

Ron Paul voted in favor of the EGTRRA of 2001.

Marriage Tax Relief Reconciliation Act of 2000

In 2000, 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 vetoed by the President.

Death Tax Elimination Act of 2000

The house also attempted to pass a repeal of the Death Tax in 2000. This time, the bill was supported by almost all Republicans and by about 1/4 of the Democrats. The bill was vetoed by the President. Ron Paul voted in favor of the Death Tax Elimination Act of 2000.

Ron Paul voted in favor of the Death Tax Elimination Act of 2000.

 

Sponsored and Cosponsored Legislation

Session-112; Bill Number-H R 547; Individual AMT Repeal Act of 2011 - Cosponsor

Amends the Internal Revenue Code to repeal the alternative minimum tax (AMT) on individuals after 2010.

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 1552; Start Up Expenses - Cosponsor

Amends the Internal Revenue Code to increase in taxable years beginning in 2009, 2010, or 2011: (1) the limit on the tax deduction for trade or business start-up expenditures from $5,000 to $20,000; and (2) the threshold amount for reducing such limit.

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

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

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 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-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.

Session-109; Bill Number-H R 2631; Religious Freedom Peace Tax Fund Act - Cosponsor

To affirm the religious freedom of taxpayers who are conscientiously opposed to participation in war, to provide that the income, estate, or gift tax payments of such taxpayers be used for nonmilitary purposes, to create the Religious Freedom Peace Tax Fund to receive such tax payments, to improve revenue collection, and for other purposes.

Session-111; Bill Number-H R 2085; Religious Freedom Peace Tax Fund Act of 2009 - Cosponsor

Directs the Secretary of the Treasury to establish in the Treasury the Religious Freedom Peace Tax Fund for the deposit of income, gift, and estate taxes paid by or on behalf of taxpayers: (1) who are designated conscientious objectors opposed to participation in war in any form based upon their deeply held moral, ethical, or religious beliefs or training (within the meaning of the Military Selective Service Act); and (2) who have certified their beliefs in writing to the Secretary.

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