Congressman Pete King

Taxes

As representative of a Congressional district with one of the highest costs of living in the country, I am a strong believer in keeping taxes low for hard-working Americans. I have consistently voted to prevent the Alternative Minimum Tax (AMT) from affecting more Americans and work to eliminate it altogether.

I have also been a supporter of President Bush’s tax cuts, and last year voted to extend that relief for all Americans. In times of economic hardship, the last thing New York families and small businesses need is a greater tax burden.

Below is some of my past work in Congress on this issue, which I plan to continue in the 112th Congress:

• Provide More Flexibility for Seniors with Their Retirement Savings. I previously sponsored legislation to amend the Internal Revenue Code to increase the age at which minimum distributions from qualified retirement plans are required to begin from age 70 1/2 to age 75. When economic conditions are having a negative effect on my constituents’ retirement savings accounts, I believe it is important that we allow people to keep their money in their accounts longer so that they may recover some of their losses before having to take a minimum distribution. Furthermore, with the retirement age increasing each year, many of those with IRAs and 401ks no longer need that money until later in their lives. Retirement savings are an important part of realizing the American dream and it is essential that the federal government aid Americans in saving for their retirement in any way possible.
• Increase Tax-Free Savings Opportunities for Higher Education and First-Time Homebuyers. In the past I’ve supported extending the allowance for increased annual contributions to Coverdell education savings accounts. The legislation I cosponsored would also have amended the Internal Revenue Code to allow tax-free distributions from a Coverdell education savings account for first-time homebuyer expenses, permit rollovers from Coverdell education savings accounts to Roth individual retirement accounts (Roth IRAs), and rename Coverdell education savings accounts as 401Kids Savings Accounts.
• Help Reduce the Tax Burden for Those Out of Work. At a time when unemployment is rising every day, it is essential that we enact legislation to help those out of work and struggling to support their families. That is why I was a cosponsor of legislation allowing individuals who have been laid-off to exclude up to $40,000 from their severance pay from federal income taxes. In addition, I also cosponsored a bill to suspend the federal income tax on unemployment compensation benefits for two years.