Rick Santorum on Taxes

Last Updated : Jan 14, 2012

Summary

Senator Santorum has been a consistent proponent of lowering taxes. His overall theory is that lowering the tax rate is the key for attracting jobs to the US and increasing manufacturing in the nation. He opposes lopsided taxes on those that create jobs and believes that this acts as a disincentive to start and maintain businesses.

During his time in office Senatory Sentarum was a consistent supporter of the Bush tax cuts and their extensions. He voted in favor of those bills and their extensions each time they came up for a vote. He also co-sponsored one of those pieces of legislation and touts his spearheading of that bill in his campaign literature.

Senator Santorum has consitently opposed the marriage penalty, the AMT, and the death tax. In 1997, he co-sponsored legislation to end the estate tax, the gift tax, and a generation skipping tax. In 1997, he co-sponsored a bill to require a 2/3 majority in Congress for any vote that would raise taxes. 

In the 2012 campaign, Senator Santorum discussed his opposition to Herman Cain's 9-9-9 plan by noting that a single person earning an income paid the same taxes as a married couple with children that earned the same amount. He noted that this was one of the problems with a fair tax. His 2012 plan mirrors these views by proposing to triple the exemption for each person and child. Currently, each household receives a deduction of roughly $3,700 of their taxable income for each man, woman, and child in the family. Tripling that rate for children would make the deduction $11,100 per child.

Senator Santorum has been vocal during the campaign in his desire to see a fairer, flatter system. He has stated that the current system punishes the individual, the small business, and the corporation. Most of his platform is consistent with this viewpoint and his history in calling for the elimination of a number of taxes such as the death tax and the AMT. The plan also calls for moving to two brackets of 10% and 28%, lowering the corporate tax rate and ending it for manufacturers in the US. He also calls for making the R&D tax credit permanent and making the rate for repatriated funds 5.25%.

2012 Tax Plan - The Santorum Solution

  • Cut and simplify personal income taxes by cutting the number of tax rates to just two - 10% and 28% and return to Reagan era pro-growth tax rate;
  • Simplify the tax code and reduce middle income taxes by eliminating the Alternative Minimum Tax (AMT);
  • Simplify the tax code, encourage savings and investment, and reduces taxes by eliminating the Death Tax;
  • Lower the Capital Gains and Dividend tax rates to 12% to spur economic growth and investment;
  • Reduce taxes for families by tripling the personal deduction for each child;
  • Reduce and simplify taxes for families by eliminating marriage tax penalties throughout the federal tax code;
  • Retain deductions for charitable giving, home mortgage interest, healthcare, retirement savings, and children;
  • Eliminate the cap on deductions for losses incurred in the sale of a principal residence;
  • Cut the corporate income tax rate in half to make our businesses competitive around the world, from 35% to 17.5%;
  • Eliminate the corporate income tax for manufacturers to spur middle income job creation in the United States and benefit from the job multiplier effect in manufacturing;
  • Increase the Research & Development Tax Credit from 14% to 20% and make it permanent to spur on innovation in America;
  • Eliminate the tax on repatriated taxable corporate income invested for manufacturers equipment investment, 5.25% corporate tax rate on other repatriated income invested in the USA, and 100% expensing for new business equipment;

 

Fox Business - Support for Bush Tax Cuts Extension

On September 7, 2010 Senator Santorum appeared on Fox Business and spoke about his support for extending the Bush tax cuts beyond the December 2010 deadline. He correctly predicted that in the end, President Obama would compromise on the Bush tax cuts and extend them all.

 

 

New Hampshire Debate

In June of 2011, Senator Santorum participated in the Presidential debate in New Hampshire. He noted the tax cuts that he was proposing to help the economy. Specifically, he notes his intention to cut the capital gains rate in half and a 5 year window where manufacturing taxes would be zero. He also proposes making the R&D tax credit permanent.

 

Fox News Appearance

In August of 2011, Senator Santorum appeared on Fox News and discussed numerous items that he would do to help the economy. One of the things that he cites is reducing the corporate tax rate from 35% to 0% for manufaturing in the US.

 

Western Debate

In October of 2011, Senator Santorum participated in the Western debate in Las Vegas. He stated his opposition to Herman Cain's 9-9-9 plan. He also talks about his tax plan that he states will allow for greater income mobility and reducing the corporate tax rates for manufacturers to zero.

 

Michigan Economic Debate

On November 10, 2011 Senator Santorum participated in the Michigan Economic Debate. He was asked about his tax plan and he discussed that and manufacturing.

 

2012 Jobs Plan

As part of his 2012 Presidential campaign, Senator Santorum proposed an economic jobs plan called the Fight for American Jobs Plan. Part of that plan was tax reform.

  • Tax Reform
    • Cut the corporate tax rate in half
    • Cut the tax rate to zero for all manufacturers
    • Permanently extend the Bush tax cuts rates for Capital Gains and Dividend Tax rates
    • Repeal the Death Tax
    • Repatriate taxable income outside the United States at a rate of 5%
    • Reduce the tax code for all by making the system flatter, fairer, and simpler

 

2012 Presidential Campaign Website Statements

Note: The Santorum campaign updated its tax plan not long ago. The first post is the more recent update and the second is the older position statement. This more recent statement expands on the previous plan by adding the simplification of the tax code to two rates

 

 

Voting Record

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. Rick Santorum voted in favor of the Pension Protection Act of 2006.

Rick Santorum 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. Rick Santorum voted in favor of the Estate Tax and Extension of Tax Relief Act.

Rick Santorum 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. Rick Santorum voted in favor of ending the Death Tax.

Rick Santorum 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. Rick Santorum voted in favor of the Tax Increase Prevention and Reconciliation Act of 2005.

Rick Santorum voted in favor of the Tax Increase Prevention and Reconciliation Act of 2005.

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 69-13 '); echo('with the support of both parties. Rick Santorum voted in favor of the American Jobs Creation Act of 2004.

Rick Santorum voted in favor of the American Jobs Creation Act of 2004.

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 92-3. Rick Santorum voted in favor of the Working Families Tax Relief Act of 2004.

Rick Santorum voted in favor of the Working Families Tax Relief Act of 2004.

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 conference report was agreed to in a 50-50 vote with most Republicans supporting it and most Democrats opposing it. Rick Santorum voted in favor of the Jobs and Growth Tax Relief Reconciliation Act of 2003.

Rick Santorum 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 got wide support from both parties and passed 85-9. Rick Santorum voted in favor of the Job Creation and Worker Assistance Act of 2002.

Rick Santorum voted in favor of the Job Creation and Worker Assistance Act of 2002.

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. Rick Santorum voted in favor of the Economic Growth and Tax Relief Reconciliation Act of 2001.

Rick Santorum voted in favor of the Economic Growth and Tax Relief Reconciliation Act of 2001.

The Marriage Penalty

In 2001, an amendment was put forth to expand the 15% tax bracket and eliminate the "marriage penalty". The offset would be accounted for by reducing the marginal tax rate reductions for the top two rate brackets. The amendment was supported by most of the Democrats and opposed by most of the Republicans. The amendment failed in a 44-56 vote. Rick Santorum voted against the amendment to end the marriage penalty.

Rick Santorum voted against the amendment to end the marriage penalty.

Marriage Tax Relief Reconciliation Act of 2000

In 2000, the senate attempted to pass the Marriage Tax Relief Reconciliation Act of 2000. This act would have ended the marriage penalty by adjusting the 15% tax bracket accordingly. Most Republicans supported the act and most Democrats opposed it. The act passed the senate in a vote. The bill was eventually vetoed by the President. Rick Santorum voted in favor of the Marriage Tax Relief Reconciliation Act of 2000.

Rick Santorum voted in favor of the Marriage Tax Relief Reconciliation Act of 2000.

 

Sponsored and Cosponsored Legislation

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.

Session-105; Bill Number-S J Res 9; Constitutional Amendment - Raising Taxes - Cosponsor

Requires a two-thirds vote of each House of the Congress in order to pass any bill levying a new tax or increasing the rate or base of any tax. Allows the Congress to waive that requirement during war or certain military conflict. Requires all votes under this Amendment to be by yeas and nays and the names of persons voting for and against to be entered in the Journal of each House.

Session-105; Bill Number-S 75; Family Heritage Preservation Act - Cosponsor

Amends the Internal Revenue Code to repeal the estate tax, gift tax, and tax on generation-skipping transfers.

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