State of Pennsylvania Archives: on Tax Reform

Brian Fitzpatrick: Simplify and flatten the tax code

• Paying taxes should be easy, fair and straight-forward. We must simplify and flatten the tax code while ensuring that everybody pays their fair share with the goal of propelling American economic growth on our Main Streets.
• Force the regulatory bureaucracies to require Congressional approval for any regulation costing the economy more than $100M.
• Eliminate the Death Tax, which unfairly penalizes small business and farmers from passing their vocation to future generations.

Everett Stern: I do not believe in spreading the wealth

A: Strongly Oppose. I do not believe in spreading the wealth.

Tom Smith: Supports flat tax; remove loopholes but keep exemptions

"If you pay a flat tax, you know what your tax is going to be. The people who work and make more," Smith said, "they are paying more." Smith's flat tax would not be truly flat. He said he would allow exemptions for mortgage interest, charitable giving, and student-loan interest, all features of the current tax code beloved by the middle class.

He would do away with federal taxes on capital-gains investment income. He said he would consider having no tax for the poor, but declined to say what income level should qualify for such an exemption. That could depend "on how well we do in getting this debt under control," he said.

Sam Rohrer: High taxation comes from ignoring the Constitution

Joe Sestak: No flat tax; focus on the working family, not Wall Street

The two candidates found some common ground on questions geared toward the economy. Both said federal spending needs to be reduced.

"When I was (in Congress) I was fighting against the spending that was going on," said Toomey.

Sestak said he would like to see the government extend help to the group he says drives the economy--"The working family, not Wall Street"--by getting tax cuts to that group.

Sestak said he does not support the flat tax as he said Toomey does, and the government should look to guarantee community bank loans to entice borrowers.

Toomey said he believes in strengthening the economy through lower taxes, less spending and increasing domestic energy production.

Barack Obama: No tax increase if earning under $250K; tax cuts under $75K

CLINTON: I will let the taxes on people making more than $250,000 a year go back to the rates that they were paying in the 1990s.

Q: Senator Obama, would you take the same pledge? No tax increases on people under $250,000?

OBAMA: I not only have pledged not to raise their taxes, I’ve been the first candidate in this race to specifically say I would cut their taxes. We are going to offset the payroll tax, the most regressive of our taxes, so that families who are middle-income individuals making $75,000 a year or less, that they would get a tax break so that families would see up to $1,000 worth of relief.

Q: You both have now just taken this pledge on people under $250,000 and $200,000.

OBAMA: Well, it depends on how you calculate it. But it would be between $200,000 and $250,000.

Barack Obama: Raise capital gains tax for fairness, not for revenue

A: What I’ve said is that I would look at raising the capital gains tax for purposes of fairness. The top 50 hedge fund managers made $29 billion last year--$29 billion for 50 individuals. Those who are able to work the stock market and amass huge fortunes on capital gains are paying a lower tax rate than their secretaries. That’s not fair.

Q: But history shows that when you drop the capital gains tax, the revenues go up.

A: Well, that might happen or it might not. It depends on what’s happening on Wall Street and how business is going.

Hillary Clinton: Absolutely no tax increase on people earning under $250K

CLINTON: I will let the taxes on people making more than $250,000 a year go back to the rates that they were paying in the 1990s.

Q: Even if the economy is weak?

CLINTON: Yes. And here’s why: #1, I do not believe that it will detrimentally affect the economy by doing that. We used that tool during the 1990s to very good effect and I think we can do so again I am absolutely committed to not raising a single tax on middle class Americans, people making less than $250,000 a year. In fact, I have a very specific plan of $100 billion in tax cuts.

Q: An absolute commitment, no middle-class tax increases of any kind.

CLINTON: No, that’s right. That is my commitment.

Q: Senator Obama, would you take the same pledge? No tax increases on people under $250,000?

OBAMA: Well, it depends on how you calculate it. But it would be between $200,000 and $250,000.

Hillary Clinton: Perhaps raise capital gains tax, but at most to 20%

OBAMA: What I’ve said is that I would look at raising the capital gains tax for purposes of fairness.

Q: Sen. Clinton, would you say, “No, I’m not going to raise capital gains taxes”?

CLINTON: I wouldn’t raise it above the 20% if I raised it at all. I would not raise it above what it was during the Clinton administration.

Q: “If I raised it at all”. Would you propose an increase in the capital gains tax?

CLINTON: You know, I’m going to have to look and see what the revenue situation is. We now have the largest budget deficit we’ve ever had, $311 billion. We went from a $5.6 trillion projected surplus to what we have today, which is a $9 trillion debt.