Jon Tester on Taxes

Last Updated : May 28, 2011

Tax Cut Proposals

In February of 2007, Senator Tester issued a press statement noting a tax cuts package he was introducing.

 

Support for Estate Tax Exemptions

In December of 2010, Senator Tester released a press statement noting his support for a recent exemption on the estate tax.

 

Support for Tax Cut Extension

In December of 2010, Senator Tester released a press statement noting his support for a recent compromise to extend the Bush tax cuts for al Americans.

 

 

The Tax Relief Act

In December of 2010, Senator Tester released a statement noting his support for the Tax Relief Act.

 

Support for Tax Reform

In December of 2010, Senator Tester released a press statement noting his support for addressing the national debt and reforming the tax code.

 

2012 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. Jon Tester voted in favor extending the Bush Tax Cuts for all except the highest earners.

Jon Tester voted in favor 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. Jon Tester voted against extending all Bush Tax cuts.

Jon Tester voted against 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. Jon Tester voted against the amendment to exempt the AMT from PAYGO rules.

Jon Tester voted against 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. Jon Tester voted against the amendment to raise the value of the estates affected to $5 Million and to lower the maximum rate to 35%.

Jon Tester voted against 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. Jon Tester voted against the amendment to raise the value of applicable estates to $5 Million and set the maximum rate at 35%.

Jon Tester voted against 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. Jon Tester voted against repealing the AMT.

Jon Tester voted against repealing the AMT.

 

Sponsored and Cosponsored Legislation

Session-111; Bill Number-S 2882; Taxpayer Responsibility, Accountability, and Consistency Act of 2009 - Cosponsor

Amends the Internal Revenue Code to: (1) require reporting to the Internal Revenue Service (IRS) of payments (including payments of amounts in consideration for property or of gross proceeds) of $600 or more made by or to corporations (other than tax-exempt organizations); (2) set forth safe harbor criteria and rules relating to the treatment of workers as employees or independent contractors; and (3) increase penalties for failure to file correct tax return information or comply with other information reporting requirements. Requires the Secretary of the Treasury to issue an annual report on worker misclassification.

Session-110; Bill Number-S 871; Savings for Working Families Act of 2007 - Cosponsor

A bill to establish and provide for the treatment of Individual Development Accounts, and for other purposes.

Session-111; Bill Number-S 181; Permanent Marriage Penalty Relief Act of 2007 - Cosponsor

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

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