Taxes

Congresswoman Baldwin in Committee

Reforming Our Tax Code

With a significant budget deficit, it is essential that we end tax breaks for the wealthiest special interests. Too many corporations avoid paying any taxes by using accounting gimmicks, loopholes and overseas operations. Many of these companies reap huge profits from contracts with the federal government. I support closing these tax loopholes. Working families should not be forced to bear an additional burden and future generations should not be left with a massive debt because well-connected individuals and corporations avoid paying their fair share to support our national defense, maintain our infrastructure, and ensure that our children are prepared to compete in the 21st century.

Middle Class Tax Cuts

Families continue to struggle in this economy. With persistently high unemployment, continued weakness in the housing market and limited access to credit for small businesses, I believe that a tax increase on working families would slow our economic recovery. Therefore, I supported extension of the Bush era tax cuts on income up to $250,000.

However, our nation’s budget deficit continues to grow. I believe that adding an additional $858 billion to our nation’s debt over the next ten years, just to give a special tax break to those with incomes over $250,000, is fiscally irresponsible. For that reason, I opposed extending those tax cuts.

Estate Tax

I strongly support permanently reforming the estate tax to create a stable and consistent tax policy that would allow Wisconsin’s farm families and small business owners to plan with certainty.

To protect small businesses and family farms, I support exempting the first $3.5 million from estate taxation. Under this plan, a couple would be able to exempt up to $7 million in assets from taxation. Given our nation’s budget deficits, I do not believe it is wise or fiscally responsible to completely repeal the estate tax.

Marriage Penalty

Our tax code should not penalize married couples. In 2001, tax reform legislation essentially ended the marriage penalty. This change in the law will expire in 2012. I will continue to support efforts to permanently end this penalty.