Taxes

Expanding Kentucky’s economy and creating more jobs in the Commonwealth is one of my top priorities in the Senate today. That is why I wanted to serve on the Senate Finance Committee and shape our national tax policy. I believe that many of the tax changes that have been made in the last few years have allowed many working people and entrepreneurs to keep more of the money they have earned and, as a result, we have seen our economy improve.

Promoting tax cuts for middle class America has dominated the legislation that I have fought for in the Senate. In 2001, I voted for and helped pass the tax bill that created a 10 percent income tax bracket for American taxpayers with the smallest incomes and reducing, over time, the tax rates for other income brackets. It also addressed the so-called “marriage penalty” that leaves married couples paying more than they would as individual taxpayers and increased the amount of the Child Tax Credit that families receive. Many of these provisions were accelerated by the 2003 Jobs and Growth Tax Relief Reconciliation Act, that I supported, and I am now pursuing ways to make these tax provisions permanent.

Recently, I introduced with Senator Ben Nelson (D-NE) S. 561, the Adoption Tax Relief Guarantee Act that will permanently extend tax incentives for families wishing to adopt a child. Today, international adoptions’ cost can be as high as $20,000-30,000 and up to $15,000 for domestic infant adoptions. These high costs cause many couples to dismiss adoption as too expensive. By helping to ease this financial burden, we can encourage the development of more stable families and provide a brighter future for thousands of kids.

I believe that the tax code is one tool to promote American businesses and encourage companies to create more jobs in the United States. To spur investment, we have passed an increase in the amount of equipment purchases that small business can deduct and have created a new tax deduction to encourage manufacturing companies to keep their products American-made. We also tackled the double-taxation of dividends, allowing all Americans to keep more of their money and reinvest it in American companies. Along with dividends, we trimmed the capital gains tax rate which will encourage more investment and help job creation. I believe that we can cut taxes and give American businesses a much needed shot in the arm so they have money today to reinvest in America.