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For Immediate Release:
November 18, 2005

Craig Opposes Tax Bill

WASHINGTON, D.C. - Idaho Senator Larry Craig registered a "no" vote on the Tax Relief Act of 2005 early this morning. The bill passed the Senate 64-33.

Craig had the following to say about the bill, S. 2020:

"In light of Hurricanes Katrina and Rita and the mounting $319 billion deficit, Americans have increasingly called on Congress to account for its spending. The reconciliation process is designed to answer these calls for fiscal responsibility by forcing lawmakers to look deeply and honestly into the federal budget and make necessary spending cuts and provide deserved tax relief.

"The Tax Reconciliation bill, currently being considered by the Senate, does many worthwhile things to this end - such as extending essential tax provisions set to expire this year like increased exemption levels for the AMT - and providing incentives to encourage charitable giving. The good effects of these provisions, however, are undercut by a fundamental inconsistency in the larger bill - namely, the bill that claims to provide tax relief actually raises taxes. Demanding more taxpayer dollars, in an effort to control federal congressional spending, is not the answer."

Craig continued by itemizing his specific objections: the inclusion of a windfall profit tax on energy companies and the failure to extend the 15% rate for long-term capital gains and dividends.

He concluded his remarks by urging the conference committee of House and Senate members charged with reconciling the two chambers' versions of the legislation to resolve problems so that meaningful tax relief can be enacted, "I sincerely hope the conference report on this bill comes back better and stronger - eliminating industry-specific tax increases antithetical to the bill's purpose while providing for sound relief provisions like the reduction in dividend and capital gains tax rates - so that we can satisfactorily answer the American taxpayers' call for a policy of fiscal responsibility."

Please read Senator Craig's floor statement here.

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