David Vitter on Taxes

Last Updated : Sep 09, 2010

Summary

Senator Vitter has called for the simplification of the tax code, ending the estate tax, and cutting income tax rates.

 

Official Website Statements

 

Campaign Website Statements

 

Voting Record

Continue Bush Tax Cuts for all Except top Earners

On July 25, 2012 the Senate voted on legislation to extend all of the Bush tax cuts with the exception of those earning more than $200,000 or couples earning more than $250,000. The measure passed 51-48 along mostly party lines. It was largely symbolic as tax bills are not legal unless they originate in the House. David Vitter voted against extending the Bush Tax Cuts for all except the highest earners.

David Vitter voted against extending the Bush Tax Cuts for all except the highest earners.

Continue All Bush Tax Cuts

On July 25, 2012 the Senate voted on an amendment to legislation to extend all of the Bush tax cuts. The measure failed 45-54 along mostly party lines. It was largely symbolic as tax bills are not legal unless they originate in the House. David Vitter voted in favor of extending all Bush Tax cuts.

David Vitter voted in favor of extending all Bush Tax cuts.

The Alternative Minimum Tax

The alternative minimum tax was created to ensure that a few of the richest Americans did not exploit loopholes to avoid paying any taxes. It was never intended to be a method of taxing the general population. Unfortunately, the amount that a person earns before the tax goes into effect was not indexed to inflation. Therefore, each year Congress must enact a "fix" to adjust the amount. Occasionally, a larger increase is proposed than inflation adjustment. Income from the tax was accounted for in the 2009 budget. According to the rules of PAYGO (Pay As You Go), a decrease in the amount of money taken in must be offset by a reduction in spending. This amendment sought to exempt the AMT from that rule, to more accurately reflect the purpose of the tax. The amendment failed with most Republicans supporting it and most Democrats opposing it in a 47-51 vote. David Vitter voted in favor of the amendment to exempt the AMT from PAYGO rules.

David Vitter voted in favor of the amendment to exempt the AMT from PAYGO rules.

The Estate Tax

The estate tax is a tax levied on the assets or estates of wealthy individuals when they pass away. The tax collects a percentage of the estates which are valued above a given amount. This amendment sought to raise the value of the estates affected from $1 Million to $5 Million, and to lower the maximum rate at which the estate can be taxed from 45% to 35%. The argument for the change was that many small farms now fell under this tax. The opposition stated that not enough revenue would be collected is the amount was raised, as the tax would affect only 0.2% of estates instead of 0.5% under the current limits. The amendment failed in a 50-50 vote with most Republicans supporting the amendment and most Democrats opposing it. David Vitter voted in favor of the amendment to raise the value of the estates affected to $5 Million and to lower the maximum rate to 35%.

David Vitter voted in favor of the amendment to raise the value of the estates affected to $5 Million and to lower the maximum rate to 35%.

The Estate Tax

In 2007, an amendment was proposed which would have raised the value of applicable estates to $5 Million and set the maximum rate at 35%. This amendment would have also made the 2006 extended rates for capital gains and dividends permanent. The amendment was supported by most Republicans and opposed by most Democrats and failed in a 47-51 vote. David Vitter voted in favor of the amendment to raise the value of applicable estates to $5 Million and set the maximum rate at 35%.

David Vitter voted in favor of the amendment to raise the value of applicable estates to $5 Million and set the maximum rate at 35%.

Full Repeal of AMT

In 2007, congress made and attempt to repeal the alternative minimum tax (AMT) completely. The legislation was defeated in a 44-53 vote with most Republicans supporting the legislation and most Democrats opposing it. David Vitter voted to repeal the AMT.

David Vitter voted to repeal the AMT.

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 93-5. David Vitter voted in favor of the Pension Protection Act of 2006.

David Vitter voted in favor of the Pension Protection Act of 2006.

Estate Tax and Extension of Tax Relief Act

In 2006, the senate voted on theEstate Tax and Extension of Tax Relief Act. This bill would have increased the estate tax exclusion to $5,000,000, effective 2015, and repealed the sunset provision for the estate and generation-skipping taxes. It would also have lowered the estate tax rate to equal the current long-term capital gains tax rate for taxable estates up to $25 million and repealed the estate tax deduction paid to states. The bill failed to pass in a 56-42 vote. David Vitter voted in favor of the Estate Tax and Extension of Tax Relief Act.

David Vitter voted in favor of the Estate Tax and Extension of Tax Relief Act.

Death Tax Repeal Permanancy Act

In 2006, the Senate voted on legislation that would have permanantly repealed the "Death" or Estate Tax. The legislation was rejected on a 57-41 vote. Most Republicans supported the legislation and most Democrats opposed it. David Vitter voted in favor of ending the Death Tax.

David Vitter voted in favor of ending the Death Tax.

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 66-31 vote. with the support of both parties. David Vitter voted in favor of the Tax Increase Prevention and Reconciliation Act of 2005.

David Vitter voted in favor of the Tax Increase Prevention and Reconciliation Act of 2005.

 

Sponsored and Cosponsored Legislation

Session-112; Bill Number-S 11; Permanent Marriage Penalty Relief Act of 2011 - Cosponsor

Renders inapplicable the general terminating date (i.e., December 31, 2012) of the Economic Growth and Tax Relief Reconciliation Act of 2001 to provisions of that Act that eliminate the tax effect known as the marriage penalty in the standard tax deduction, the 15% income tax bracket, and the earned income tax credit.

Session-111; Bill Number-S 74; Permanent Marriage Penalty Relief Act of 2009 - Cosponsor

Makes permanent provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Working Families Tax Relief Act of 2004 that eliminate the marriage penalty in the standard deduction, the 15-percent tax bracket, and the earned income tax credit.

Session-111; Bill Number-S 3773; Tax Hike Prevention Act of 2010 - Cosponsor

Repeals the general terminating date (i.e., December 31, 2010) applicable to tax relief provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), thus making such provisions permanent. Repeals the provision of the Jobs and Growth Tax Relief Reconciliation Act of 2003 terminating the reductions in tax rates for capital gains and dividends, thus making such reductions permanent. Repeals provisions of EGTRRA repealing the estate and generation-skipping transfer taxes after 2009, thus restoring such taxes, subject to the amendments made by this Act. Restores the step-up in basis tax treatment of inherited estate assets. Amends the Internal Revenue Code to: (1) provide for annual increases in the alternative minimum tax (AMT) exemption amount during the period of 2010 through 2020; (2) expand offsets against the AMT for certain nonrefundable tax credits; (3) retain marriage penalty relief provisions and the increased child tax credit; (4) revise the estate tax by imposing a permanent maximum estate tax rate of 35% and allowing a permanent estate tax exclusion amount of $5 million (adjusted annually for inflation) after 2009; and (5) allow a surviving spouse to increase the estate tax exclusion amount by the unused exclusion amount of his or her deceased spouse. Allows the executor of any estate of a decedent dying in 2010 to elect to apply existing provisions of the Internal Revenue Code of 1986 without regard to specified provisions of this Act.

Session-111; Bill Number-S 567; A bill to repeal the sunset on the reduction of capital gains rates for individuals and on the taxation of dividends of individuals at capital gains rates - 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-111; Bill Number-S 3047; Tax Code Termination Act - Cosponsor

Terminates the Internal Revenue Code of 1986 for taxable years beginning after 2013, except provisions of such Code relating to social security taxation (i.e., taxes on wage, self-employment, and railroad retirement income). Establishes within the legislative branch a National Commission on Tax Reform and Simplification. Directs the Commission to: (1) review the Internal Revenue Code of 1986 and its impact on the economy, families, and the workforce: (2) determine whether the current income tax system should be replaced with a flat tax, a national sales tax, or another system, or can be simplified; and (3) submit a report to Congress on the results of its review, with recommendations for fundamental reform and simplification of the Code. Requires congressional approval of a new federal tax system no later than July 4, 2013, or a vote of Congress to reauthorize the Internal Revenue Code of 1986.

Session-110; Bill Number-S 502; Capital Gains Rates - Cosponsor

A bill to repeal the sunset on the reduction of capital gains rates for individuals and on the taxation of dividends of individuals at capital gains rates.

Session-110; Bill Number-S 14; Invest in America Act - Cosponsor

A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes.

Session-109; Bill Number-S 988; Jobs Protection and Estate Tax Reform Act of 2005 - Cosponsor

Amends the Internal Revenue Code to accelerate the repeal of the tax on estates and generation-skipping transfers to January 1, 2005, and to make such repeal permanent.

Session-109; Bill Number-S 420; Death Tax Repeal Permanency Act of 2005 - Cosponsor

Provides that the sunset provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (i.e., December 31, 2010) shall not apply to the repeal of the Federal estate tax and generation-skipping transfer tax (thus making such repeal permanent).

Session-109; Bill Number-S 78; Permanent Marriage Penalty Relief Act of 2005 - Cosponsor

Makes permanent provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 which eliminate the marriage penalty in the standard deduction, the 15-percent tax bracket, and the earned income tax credit.

Session-109; Bill Number-S 7; Jobs and Growth Tax Relief Act of 2005 - Cosponsor

Makes permanent: (1) reductions in individual income tax rates enacted by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA); (2) reductions in individual capital gains and dividends tax rates enacted by the Jobs and Growth Tax Relief Reconciliation Act of 2003; and (3) the repeal of the estate and generation-skipping transfer taxes and reductions of the gift tax enacted by EGTRAA.

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