Taxes
I believe that federal taxes should be as simple, low, and as fair as possible so that Colorado families and small business owners can use their hard-earned money to save, invest, and expand their opportunities. Tax policy should help spur job growth, and the tax burden should be manageable for individual taxpayers and businesses. In addition, good, sound tax policy must help reduce the federal debt in the long run.
For far too long, partisan fighting has slowed progress on meaningful tax reform. That's not what Coloradans want to see from their elected representatives. I want all Coloradans to know that I will work to bridge the partisan divides in Washington, D.C., as the Senate debates tax policy in the coming months and years. You also have my commitment that I will always listen to all views about reforming our tax system, and I will make my decisions based on what is best for Colorado, its families, and its small businesses.
During my service in the U.S. House - and now in the U.S. Senate - I have fought to keep more money in the pockets of working people, and I support several changes that would add fairness to our tax system.
For example, I believe we should permanently eliminate the so-called "marriage penalty" so that married couples aren't punished by the tax system. Additionally, we need sensible estate tax reform so that families can leave their farm or their business to their children.
Moreover, I believe that tax credits and deductions can help make higher education more affordable, help families afford to care for their children, and defray the expenses of making homes more energy efficient. And I have long supported eliminating the "Alternative Minimum Tax" (AMT), which punishes middle-income wage earners.
I have listened to small business owners, many of whom support targeted tax relief that can help grow their businesses, create jobs, and restore the economy. To this end, I joined members of both parties to co-sponsor legislation (S. 823) to help businesses use their net operating losses as refunds to invest in new plant and equipment, which is designed to help job growth.
Also, as part of our economic recovery efforts, I was proud to support the "Making Work Pay" tax cut that was a key provision in the American Recovery and Reinvestment Act of 2009, which I worked to help pass. This historic middle-class tax cut reduced income taxes for 95 percent of Americans. With more money to spend or save during tough economic times, this tax cut is helping hard-working Colorado families and individuals. The American Recovery and Reinvestment Act also contained several tax breaks for small businesses, including:
- An extension of a provision that encourages businesses to spend more capital on infrastructure and equipment;
- An extension of bonus depreciation, which allows businesses to deploy their resources more efficiently; and
- A tax credit for businesses that hire unemployed veterans.
Finally, I also was proud to be an original co-sponsor of Senate bill (S. 2936) to help victims of the disastrous January 2010 Haiti Earthquake by allowing taxpayers to immediately deduct their charitable contributions on their 2009 tax return. And in seeking a solution to our nation's growing health care crisis, which is increasingly strangling public and private finances, I was pleased to see over half of the legislation's cost dedicated to putting money back in the pockets of Colorado families and small businesses. This type of common-sense tax policy is what Coloradans demand, and I pledge to remain diligent in pursuing more policies like it in the years ahead.
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American Family Farm and Ranchland Protection Act, S. 3640
My bill seeks to preserve family farms and the heritage of our rural communities by helping families avoid the pressure to sell, break up or develop their property when it's handed down from one generation to the next. This bipartisan bill would update a 1997 provision in the tax code, enabling families to exclude up to 50 percent of the value of their land, totaling up to $5 million in exclusions, from a taxable estate if they protect its natural and historic value with a permanent conservation easement. A conservation easement is a voluntary agreement that prevents future commercialization, while still permitting historic farming and ranching operations to continue in the family. The tax code currently allows landowners to exclude up to 40 percent, but caps the exclusion at $500,000. With today's increasing land prices and the encroachment of development, the American Family Farm and Ranchland Protection Act would raise the exemption and provide additional relief for families, while also encouraging more robust conservation efforts.
This bipartisan legislation is supported by a wide array of stakeholders, including the Land Trust Alliance, the Nature Conservancy, the American Farmland Trust, the U.S. Cattlemen's Association, and the Environmental Defense Fund. -
The HIRE Act (S.A. 3310) - Strengthening Colorado Businesses and Creating Jobs
I supported the HIRE Act, which President Obama signed into law on March 18. The bill, which passed the Senate 68-29, with strong bipartisan support, will spur job growth and strengthen the private sector by encouraging businesses to hire new workers and invest in their companies and communities. The HIRE Act provides tax incentives for businesses to hire unemployed workers, encourages small businesses to invest in their future by permitting them to write off up to $250,000 in new equipment investments, jumpstarts highway infrastructure projects, and frees up investment capital for cities and states to create jobs and improve their communities with further infrastructure projects. These measures will grow our economy, strengthen Colorado businesses and create jobs for hardworking Coloradans.
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Brewers Excise and Economic Relief Act
I introduced the Brewers Excise and Economic Relief Act of 2009 to lower the excise tax on a barrel of beer from $18 per barrel to $9, the pre-1991 level (for smaller producers: $7 to $3.50 per barrel). Colorado is the largest beer producing state in the country and the beer industry is responsible for over 100,000 jobs in production, manufacturing, commodities production and retail distribution.