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Taxes and Budget

     Congressman Lee Terry believes taxes are a necessary evil, collected only to support essential government services within the legitimate, constitutional roles of the federal government. He believes we cannot tax our way out of a deficit; tax increases stifle entrepreneurship and economic growth. The only way to eliminate the deficit, and our long-term debt, is for the economy to expand while government spending is constrained. That is why Lee Terry voted for:

  • Across-the-Board Tax Rate Reductions
    Provides immediate tax relief through permanent reduction of individual income tax rates. No one, no matter their income, should send more than one-third of their income to the IRS in taxes. This legislation gives back some of what you overpaid to the government so you can get a new washer and dryer, or get your children new school clothes, or even pay some of the college tuition or car bills that cost so much nowadays.
  • Marriage Penalty Repeal
    This stops the unfair tax that couples pay just for saying, "I do." This is a common-sense plan to strengthen families and secure our children's future.
  • Death Tax Repeal
    No one should be forced to visit the undertaker and the IRS all in the same day. Repeal of the death tax will lift an especially unfair burden from family farms and small businesses so that they can also share in the American dream.
  • Doubling the Child Tax Credit to $1000
    Under this plan, a family of four would get an additional $1,000 in tax relief to spend or save however they wish; for new clothes, college savings, or a host of other items in a family budget.
  • IRA Contribution Limit Increase to $5,000
    Allows Americans to set more aside in an IRA or 401(k)-type plan, modernizes pension laws and provides regulatory relief to encourage more small businesses to offer retirement plans.
  • 401K Contribution Limit Increase to $15,000
    The limit on salary reduction contributions to 401(k)-type plans would be increased to $15,000 by 2006; and the limit on an employer's deduction for contributions to certain types of defined contribution plans would be raised to 20% of compensation.
  • $2,000 Education Savings Accounts (ESAs) for K-12 Public and Private Education
    Allows parents to invest up to $2,000 annually in ESAs (from the current limit of $500) and permits tax-free withdrawals from ESAs to pay for both college tuition and K-12 education expenses.
  • $10,000 Adoption Tax Credit
    Increases the adoption tax credit to $10,000 for all adoptions and increases the employer adoption assistance exclusion to $10,000.

      Congressman Terry also believes that excessive growth in Federal spending is a great threat to future generations. That’s a major reason why Congressman Terry voted against the 2004 omnibus spending bill that contained thousands of pork projects. Some of these projects included $450,000 for Trout Genome Mapping and $90,000 for olive fruit fly research. Congressman Terry has no higher priority than to continue working to bring Federal spending under control.

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