U.S. Senate candidate Roxanne Conlin favors sweeping tax increases on Iowa families and small businesses would impose billions of dollars of jobs-killing, recovery stalling new taxes on the American economy if elected in November.
Conlin, a Des Moines Democrat, said she will let the 2001 tax cuts expire, raising taxes on nearly every Iowa family. It would be the largest tax increase in American history.
Small business owners, families, farmers and small investors have benefited from the 2001 tax legislation that is set to expire Jan. 1. Grassley favors extending the law, particularly as the economy struggled to rebound. However, Conlin favors allowing numerous taxes to rise to fuel more government spending.
Conlin favors increasing personal income tax rates, including the rate at which two of every three small businesses are taxed. That rate would rise from 35 percent to 39.6 percent. The lowest rate will climb from 10 percent to 15 percent and all other personal income taxes will increase.
The “marriage penalty” will return from the first dollar of income and the child tax credit will be cut in half from $1000 to $500 per child. The standard deduction will no longer be doubled for married couples relative to the single level. The dependent care and adoption tax credits will be cut. The tax will soar from zero to 55 percent on estates over $1 million, which is far less than the value of an average Iowa farm.
The capital gains tax would climb from 15 percent this year to 20 percent in 2011. The dividends tax would more than double from 15 percent this year to 39.6 percent in 2011 and rise another 3.8 percent in 2013. The alternate minimum tax would hit seven times as many families next year, up from 4 million to more than 28 million. Those families will have to calculate their tax burdens twice, and pay taxes at the higher level. Small businesses will lose 50 percent of their expensing. The deduction for tuition and fees will not be gone and tax credits for education will be limited. Teachers will no longer be able to deduct classroom expenses.
“Roxanne Conlin has made tens of millions from federal tax credits given tax-free to her real estate business over the years yet she hypocritically campaigns against tax breaks for the wealthy. The problem with her vocal support for allowing the 2001 tax provisions expire is that everyday Iowans will feel the impact,” said Eric Woolson, a spokesman for U.S. Sen. Chuck Grassley’s re-election campaign. “She is on the wrong side and she cannot deny it.”
He added, “Roxanne Conlin is proposing to heavily tax Iowans who want to pass on the family farm or business, raise taxes on even the lowest tax bracket, drastically expanding the alternate minimum tax, taking away deductions for tuition and classroom expenses and cutting the child tax credit in half. She’s not fighting for working Iowans; she’s fighting to take as much of our money as she possibly can.”
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