George Allen on Taxes

Last Updated : Oct 09, 2012

Summary

Senator Allen is a strong proponent of tax cuts and reduing the overall effective rate of taxation. While in office, he has voted for the Bush tax cuts and their extensions and a number of other efforts to end the estate tax and the marriage penalty.

The Bush Tax Cuts

In 2001, Senator Allen supported the initial plan put forth by the Bush administration by stating that the surpluses of the last few years represented overtaxation of the American taxpayers, and that excessive taxation limits the individual freedom of hard-working Americans, their families, and their enterprises. He also stated that out of the $3.1 trillion surplus, the $1.6 trillion the Bush administration is proposing is an excessive amount to return to our taxpayers.

The R&D Tax Credit

Also in 2001, Senator Allen supported an amendment to make the R&D Tax Credit permanent. He stated that doing so was cost effective in that every dollar of revenue cost leads to a $1 increase in business R&D spending. He also added that temporarily extending the tax credit over and over again to have changing tax laws or lack of credible, predictable tax policies makes companies them less likely to want to invest and take the risk of billions of dollars in research and development if they are not certain of the long term.

Interest Deduction

In 2004, Senator Allen supported an amendment to change the law to allow companies to deduct interest from payments made to overseas parent companies. He stated that the amendment removed borrowing from a U.S. taxpayer or public markets, such as commercial paper, from the calculation of disqualified interest, which had the added benefit of encouraging international companies to borrow from financial institutions that are subject to U.S. taxation or the commercial paper market strengthening the U.S. financial markets and bringing tax revenue into the U.S. Treasury. The amendment also moved from the calculation of disqualified interest guaranteed third-party borrowing to the extent the taxpayer can demonstrate it could have borrowed without such guarantee.

The Estate Tax

In 2006, Senator Allen support permanenty ending the estate tax. He paraphrashed Patrick Henry by stating that There should be no taxation without respiration in the United States of America. He added that part of the American dream is to be able to pass on what you have worked for or the business you have started.

2012 Tax Plan

  • Reduce the federal tax on job-creating businesses to 20 percent
  • Make the tax code more simple and fair for businesses and individuals.rn
    • Eliminate or modify credits, deductions, and special carve-outs that have Washington picking winners and losers.
    • End double taxation of business profits by adopting a territorial system of taxation.
    • Enact the “Freedom to Choose” Flat Tax for individuals.
  • End the Death Tax

 

The President's Plan

On February 8, 2001 Senator Allen spoke on the Senate floor about the tax plan proposed by President Bush.

 

The R&D Tax Credit

On June 29, 2001 Senator Allen spoke on the senate floor in support of making the R&D tax credit permanent.

 

JOBS Act

On March 24, 2004 Senator Allen spoke on the Senate floor in support of an amendment to the JOBS Act to alter taxes relating to international businesses.

 

Repealing the Estate Tax

In June of 2006, Senator Allen spoke on the Senate floor in support of the Death Tax Repeal Permanency Act of 2005.

 

Blueprint for America Plan

 

Campaign Website Statements

 

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. George Allen voted in favor of the Pension Protection Act of 2006.

George Allen 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. George Allen voted in favor of the Estate Tax and Extension of Tax Relief Act.

George Allen 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. George Allen voted in favor of ending the Death Tax.

George Allen 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. George Allen voted in favor of the Tax Increase Prevention and Reconciliation Act of 2005.

George Allen 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. George Allen voted in favor of the American Jobs Creation Act of 2004.

George Allen 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. George Allen voted in favor of the Working Families Tax Relief Act of 2004.

George Allen 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. George Allen voted in favor of the Jobs and Growth Tax Relief Reconciliation Act of 2003.

George Allen 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. George Allen voted in favor of the Job Creation and Worker Assistance Act of 2002.

George Allen 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. George Allen voted in favor of the Economic Growth and Tax Relief Reconciliation Act of 2001.

George Allen 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. George Allen voted against the amendment to end the marriage penalty.

George Allen voted against the amendment to end the marriage penalty.

 

Sponsored and Cosponsored Legislation

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.

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