What: All Issues : Fair Taxation : Corporate Tax Breaks, General : HR 1. (Economic stimulus) Bunning of Kentucky amendment that would significantly raise the amount of money individuals may deduct for capital losses/On agreeing to the amendment
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HR 1. (Economic stimulus) Bunning of Kentucky amendment that would significantly raise the amount of money individuals may deduct for capital losses/On agreeing to the amendment
senate Roll Call 57     Feb 06, 2009
Y = Conservative
N = Progressive
Winning Side:
Progressive

This vote was on an amendment by Jim Bunning, R-Ky., that would have raised the amount of money individuals could deduct in capital losses for 2009 from $3,000 to $15,000.  It also would have removed a provision allowing corporations to apply general tax credits against tax payments for the previous five years, rather than the current law, which limits this practice to one.  The amendment was offered to a bill that would provide more than $884.5 billion in tax cuts and funding intended to stimulate the flagging economy.

Bunning said the current limit on what individuals can deduct for capital losses was set in 1976, a long time ago.  He said allowing people to deduct more would encourage private risk-taking.

"It will stimulate the economy by encouraging private risk taking. When investors take risks, the economy expands, and the fear we are experiencing will be dispelled," Bunning said.

Max Baucus, D-Mont., said the change Bunning is seeking would cost the government $11 billion over 10 years, and that the change – from $3,000 to $15,000 -- is "too much of a leap."

"I do think perhaps the capital loss provision applied to income should be increased at some point, but this is too much of an increase," Baucus said.

By a vote of 41-55, the amendment was rejected. All but one Republican present voted for the amendment.  All but three Democrats present voted against the amendment.  The end result is that the measure went forward without a provision that would have allowed individuals to deduct up to $15,000 in capital losses for 2009, rather than the current limit of $3,000.

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