Taxation and Tax Code
The least quantity assignable,
admissible, or possible, in a given case; hence, a thing of small consequence.
- A charge, especially a
pecuniary burden which is imposed by authority.
- A charge or burden laid upon
persons or property for the support of a government.
- Especially, the sum laid upon
specific things, as upon polls, lands, houses, income, etc.
- A sum imposed or levied upon
the members of a society to defray its expenses.
- To subject to the payment of a
tax or taxes; to impose a tax upon; to lay a burden upon; especially, to
exact money from for the support of government.
I, Section 7 - All
Bills for raising Revenue shall originate in the House of
Representatives; but the Senate may propose or concur with
Amendments as on other Bills.
I, Section 8 - The
Congress shall have Power To lay and collect Taxes, Duties, Imposts
and Excises, to pay the Debts and provide for the common Defense and
general Welfare of the United States; but all Duties, Imposts and
Excises shall be uniform throughout the United States;
Capitation, or other direct, Tax shall be laid, unless in Proportion
to the Census or enumeration herein before directed to be taken.
- No Tax or
Duty shall be laid on Articles exported from any State.
Congress shall have power to lay and collect taxes on incomes, from
whatever source derived, without apportionment among the several
States, and without regard to any census or enumeration. (Note:
Article I, section 3, of the Constitution was modified by the 17th
XXIV, Section 1
- The right of citizens of the United States to vote in any primary
or other election for President or Vice President, for electors for
President or Vice President, or for Senator or Representative in
Congress, shall not be denied or abridged by the United States or
any State by reason of failure to pay poll tax or other tax.
of Confederation IV
- The better to secure and perpetuate mutual friendship and
intercourse among the people of the different States in this Union,
the free inhabitants of each of these States, paupers, vagabonds,
and fugitives from justice excepted, shall be entitled to all
privileges and immunities of free citizens in the several States;
and the people of each State shall free ingress and regress to and
from any other State, and shall enjoy therein all the privileges of
trade and commerce, subject to the same duties, impositions, and
restrictions as the inhabitants thereof respectively, provided that
such restrictions shall not extend so far as to prevent the removal
of property imported into any State, to any other State, of which
the owner is an inhabitant; provided also that no imposition, duties
or restriction shall be laid by any State, on the property of the
United States, or either of them.
of Confederation VI
- No State
shall lay any imposts or duties, which may interfere with any
stipulations in treaties, entered into by the United States in
Congress assembled, with any King, Prince or State, in pursuance
of any treaties already proposed by Congress, to the courts of
France and Spain.
of Confederation VIII
- The taxes
for paying that proportion shall be laid and levied by the
authority and direction of the legislatures of the several
States within the time agreed upon by the United States in
prove this, let Facts be submitted to a candid world.
- He has
combined with others to subject us to a jurisdiction foreign
to our constitution, and unacknowledged by our laws; giving
his Assent to their Acts of pretended Legislation:
imposing Taxes on us without our Consent:
- Introduction and
- Our plans focus on
ensuring that America remains safe, terrorists are defeated, and
democracy flourishes in the world … on expanding opportunities for
ownership and investment … on making tax relief permanent ...
- Ushering in an Ownership
- Tax Relief: Making
it Happen, Making it Permanent
- George W. Bush
ran for President on a promise of lower taxes, so that people could
keep more of the income they earn. He fulfilled that pledge. The
fundamental premise of tax relief is that everyone who pays income
taxes should see their income taxes reduced. The President offered a
plan to lower all tax rates. Republicans in Congress strongly
supported the President's plan. In 2001, President Bush signed
historic tax relief into law. This year, 43 million families with
children are receiving an average tax cut of over $2,000. The 2001
- Created a
new, low 10 percent income tax bracket;
individual income tax rates for all Americans who pay income
- Doubled the
child tax credit to $1,000;
- Reduced the
marriage penalty for 33 million married couples;
education IRAs, made pre-paid tuition plans tax-free, and
created a deduction for higher education expenses;
the death tax that penalizes family-owned small businesses and
and expanded IRAs and 401(k)s so workers can save more for their
the adoption tax credit and the child care tax credit.
- President Bush
and the Republican Congress built on the reforms of 2001 by passing
the Jobs and Growth Act of 2003. This legislation assisted our
economic recovery by accelerating the 2001 tax relief and
encouraging investment. The tax rates on capital gains and dividend
income were reduced to the same, lower rate of 15 percent to
encourage saving and investment. Seven million senior citizens who
rely on dividend income are benefiting from this tax relief. The law
also quadrupled small business expensing so entrepreneurs can deduct
from their taxes the first $100,000 of investment. Because of the
2001 and 2003 tax cuts, 111 million families are receiving an
average tax cut of over $1,500 and the overall tax burden on working
Americans is the lowest it has been in 37 years.
- We believe that
good government is based on a system of limited taxes and spending.
Furthermore, we believe that the federal government should be
limited and restricted to the functions mandated by the United
States Constitution. The taxation system should not be used to
redistribute wealth or fund ever-increasing entitlements and social
- Our Party
endorses the President's proposals to make tax relief permanent, so
that families and businesses can plan for the future with
confidence. Anything less will result in a significant tax increase
on Americans. Making the tax cuts permanent is a crucial first step
toward expanding ownership and ensuring that America turns economic
growth into lasting prosperity.
- Increasing Saving
- In the past few years
President Bush and Congressional Republicans have passed into law a
variety of measures to improve, simplify, expand, and protect
retirement savings in IRAs, 401(k)s, and other retirement plans.
the amount you can save each year tax-free.
housing is in the national interest. That is why the mortgage
interest deduction for primary residences was put into the federal
tax code and why tax reform of any kind should continue to encourage
homeownership. We support efforts to enact the Single-Family
Affordable Housing Tax Credit.
- Small Business
pledged in 2000 to lower tax rates for small business owners and
entrepreneurs, end the death tax, cut red tape, reform our liability
system, and aggressively expand overseas markets for our goods and
services. Though more work remains to be done, including
reauthorizing the Small Business Administration, President Bush and
Congressional Republicans have made good on each of those
commitments. They have:
taxes on 25 million small business owners and entrepreneurs.
Much of the tax relief came from reductions in individual income
tax rates. Ninety percent of businesses pay income taxes at
individual rates, not corporate rates.
- Lowered the
tax burden on investment in new equipment by quadrupling the
limit on small business expensing from $25,000 to $100,000 and
allowing additional first-year depreciation of that equipment.
the death tax that punishes family-owned small businesses and
paperwork. For example, 22.4 million small business taxpayers
now have fewer lines to fill out on tax forms, freeing up an
estimated 9.5 million hours previously used for paperwork every
- Health Savings
- Health Savings
Accounts allow people to save, earn interest, and spend tax free on
their health care needs.
- The next step,
which our Party endorses, is to extend tax deductibility to the
insurance premiums associated with HSAs.
- Building an Innovative,
Globally Competitive Economy
- America's economy is
the strongest in the world, and it is getting stronger thanks to lower
taxes, fewer burdensome regulations, and a focus on encouraging
- We must maintain our
commitment to free and fair trade, lower taxes, limited regulation, and
a limited, efficient government that keeps up with the new realities of
a changing world.
- Lower Taxes and
- In 2001,
President Bush and the Republican Congress worked together to pass
the most sweeping tax relief in a generation. By letting families,
workers, and small business owners keep more of the money they earn,
they helped bring America from recession to a steadily expanding
economy. Despite enduring the after-effects of the stock market's
irrational exuberance in the late 1990s, terrorist attacks on our
nation, and corporate scandals that bubbled to the surface after
years of inattention, the U.S. economy has now grown for 33 straight
months. And unlike four years ago, there are no signs of an end to
the current economic growth.
- The proof is in
the numbers, and the numbers prove our economy is strong and growing
- Over the
past year, gross domestic product (GDP) grew at one of the
fastest rates in two decades.
- Without the
President's tax relief, real GDP would have been more than 3
percent lower and 2 million fewer Americans would have been
working at the end of last year.
- Since last
August, 1.5 million new jobs have been created.
unemployment rate has fallen from 6.3 to 5.5 percent, which is
below the average of the 1970s, 1980s, and 1990s.
over the last year is up in 46 of the 50 states, and the
unemployment rate is down in 49 of the 50 states. In addition to
the official figures, household surveys show that hundreds of
thousands of new jobs have been created, unreported, through
self-employment and by small businesses.
after-tax incomes are up by 9.6 percent since December 2000.
rates are at record levels - seven out of ten American families
own their own home today.
confidence is up from the levels seen at this time last year.
remains low by historical standards, as do mortgage rates.
- We know what
brought us this success - the hard work of the American people and
the Republican commitment to low taxes. Now we must keep our economy
on the right path by preventing taxes on families from going up next
year, making the tax relief of the last four years permanent, and
reforming the tax code to make it simpler, fairer, and more
- Tax Reform
- In 2000 we
rightly declared: "The federal tax code is dysfunctional. It
penalizes hard work, marriage, thrift, and success - the very
factors that are the foundations for lasting prosperity." As
noted earlier, from reducing marginal income tax rates to phasing
out the death tax, President Bush and the Republican Congress have
made great strides in addressing each of these problems. However, it
is equally obvious that much more remains to be done to reform the
federal tax code. Instead of being simple, the current tax system is
needlessly complex, making it susceptible to abusive tax avoidance
schemes. Instead of being efficient, it punishes hard work,
discourages savings and investment, and hinders the international
competitiveness of U.S. firms. Instead of being fair, it is out of
line with our basic values and undermines our sense of fairness.
Instead of being predictable, it is highly unpredictable and
uncertain. Tax reform is necessary to achieve the simplicity,
efficiency, fairness, and predictability that the American people
deserve, and to give all Americans the freedom to determine their
own spending priorities. In particular, we must:
- Make the tax
relief of 2001 and 2003 permanent. The various expiring tax
relief provisions, ranging from 2005 to 2011, make the tax code
confusing for everybody and limits the ability of workers,
families, and businesses to plan for the future with confidence.
Nowhere is this more apparent than with the death tax, which is
reduced now, disappears in 2010, and then comes fully back to
life in 2011.
- Build on
efforts to develop a tax code that does not punish taxpayers for
- Replace the
tax code with a system that is simpler, provides more freedom to
our citizens, is pro-growth, boosts the economy, and encourages
savings and investment.
- We support
legislation requiring a super-majority vote in both houses of
Congress to raise taxes. We will prohibit retroactive taxation and
will not tolerate attempts by federal judges to impose taxes. We
oppose all attempts by the United Nations to impose a global tax and
reject any claims of authority by United Nations to do so. Because
of the vital role of religious and fraternal benevolent societies in
fostering charity and patriotism, they should not be subject to
- Alternative Minimum Tax
- The alternative
minimum tax (AMT) represents a second tax system for individuals.
Its stated goal is to insure that high-income taxpayers pay some
amount of income tax. But due to the lack of indexing, the broad
base and reach of the current AMT will make it apply increasingly to
middle-income taxpayers. Millions of additional taxpayers must
complete AMT forms just to determine that they are not subject to
the tax. As we look at the broader issue of tax reform, we call upon
Congress to address this increasingly unfair second tax system on
- Tax cuts and
spending are not the same. They do not have the same effect on the
economy or on the federal budget. Tax cuts allow American workers,
families, business owners, and investors to keep more of their own
money. New spending requires the government to take control of a
bigger slice of the economy. We recognize that the problem is not
that the American people are taxed too little but that the federal
government spends too much. To ensure that the federal government
respects the burdens on taxpayers and spends only as much as is
necessary to accomplish our common goals, we support extending the
pay-as-you-go requirement for mandatory spending only.
- Reforming the
- Inefficiency and
waste in the legal system is costing the average American family of
four $1,800 every year, equivalent to an extra 3 percent tax on
- Research and
- President Bush
and the Republican Party also support making the R&D tax credit
- Strengthening Our
- Health Insurance Tax
We applaud the
President's commitment to increasing health coverage for all
Americans. He proposed a refundable tax credit that will make health
insurance more affordable to millions of Americans who do not have
employer-provided insurance or public insurance. The Treasury
Department estimates the tax credit will extend insurance to between
four and five million Americans.
- The Trade
Promotion Authority bill, supported by the Republican Congress and
signed by President Bush, provides a tax credit to help workers
obtain health insurance coverage if they have lost their jobs due to
international trade. The tax credit has helped thousands of
displaced workers get insurance coverage.
- Long-Term Care
- We support proposals by President Bush and Republicans
in Congress to recognize and reward individual responsibility and
compassion by creating an above-the-line tax deduction for premiums
of long-term care insurance and allowing an additional personal tax
exemption for taking care of an elderly parent at home.
- The District of
- The D.C.
homebuyer's tax credit helped to revitalize marginal neighborhoods
and should be reinstated.
- Native Americans
- While many tribes have
become energetic participants in the mainstream of American life,
the serious social ills afflicting some reservations have been
worsened by decades of mismanagement from Washington. In its place,
we offer these guiding principles:
- High taxes
and unreasonable regulations stifle new and expanded businesses
and thwart the creation of job opportunities and prosperity.
- Protecting Our Families
- Supporting Adoption
and Foster Children
- We support the
President's strong efforts to promote adoption through increased tax
incentives and bonuses to states that place older children in
permanent family homes, as well as his efforts to promote foster
care by increasing the allocation of funds for preventive and family
Taxation and Tax Code
Administrative Policy Initiatives
Republican Sponsored Legislature
— Taxpayer Bill of Rights 2, Pub.L. 104-168, 110 Stat. 1452
— Small Business Job Protection Act, Pub.L. 104-188, 110 Stat. 1755
- August 5, 1997 —
Taxpayer Relief Act of 1997, Pub.L. 105-34, 111 Stat. 788
22, 1998 — Taxpayer Bill of Rights III, Pub.L. 105-206, title III, 112
Law 107–16, Economic Growth and Tax Relief Reconciliation Act of 2001
(June 7, 2001)
28, 2003 — Jobs and Growth Tax Relief Reconciliation Act of 2003, Pub.L.
108-27, 117 Stat. 752
— Tax Increase Prevention and Reconciliation Act of 2005, Pub.L. 109-222,
120 Stat. 345
— Tax Relief and Health Act of 2006, Pub.L. 109-432, 120 Stat. 292
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