Since my first days in Congress, I have been fighting to make our tax laws fairer for all Nevadans. I have led the fight to provide tax relief for working families, reinstate the state sales tax deduction, and reform the IRS.

Tax Relief for Working Families        
I support broad-based tax cuts that lower the tax burden for working families throughout Nevada, such as the $1000 per child tax credit, relief from the marriage penalty, and the 10 percent tax bracket.  Absent Congressional action, these important tax cuts will expire after 2010.  The budget passed by the Senate early in March (S.Con. Res. 70), provides resources to extend these important tax cuts beyond their expiration date.

I also support reforming the Alternative Minimum Tax (AMT).  This tax was originally enacted in 1969 to ensure that very wealthy individuals paid a minimum level of income tax.  Unfortunately, the AMT was not adjusted for inflation, and as a result an increasing number of middle-income Americans are feeling its pinch.  Before the end of the current Congress, the House and Senate passed legislation (H.R. 1424) to increase the AMT exemption for married couples to $69,950 to ensure that no new taxpayers would be subject to this tax in 2008.  Without this temporary fix, 21 million additional taxpayers would be forced to pay the AMT. 

Protecting the State Sales Tax Deduction
Because Nevadans pay no state income tax, citizens in our state can elect to deduct the sales taxes they pay in computing their federal income tax liabilities.  Although the deduction was originally scheduled to expire on December 31, 2005, I successfully fought to continue it through 2009. 

I believe this important tax deduction for Nevadans should be made permanent, and at the beginning of this Congress I cosponsored legislation (S. 143) that would do just that.  I will do everything I can to make the sales tax deduction permanent, so that our tax laws treat Nevada’s families fairly.

Reforming the IRS
Throughout my time in Washington, I have led the fight to reform the IRS to make the agency more responsive to the needs of Nevada taxpayers.  In fact, my first speech in the Senate in 1987 was about the need to provide taxpayers with greater protections.  

I was a strong champion of the original Taxpayers' Bill of Rights, a law that guarantees taxpayers' right to have an attorney represent them before the IRS, prohibits the IRS from using quotas for audits or property seizures, and allows taxpayers to recover financial damages caused by the IRS. Most important, the law requires the IRS to explain to taxpayers, in plain English, these and all the other rights to which they are entitled.

While the original Taxpayers Bill of Rights sent a strong message to many IRS officials, further reform was necessary. As such, I supported the Taxpayers' Bill of Rights II, which created the Office of Taxpayer Advocate to assist taxpayers in resolving problems with the IRS. Later, I joined Senators Bob Kerrey (D-NE) and Charles Grassley (R-IA) to pass the IRS Restructuring and Reform Act. This comprehensive law revamped the management and oversight of the IRS to improve its operations and make the agency more accountable to American taxpayers.

Tax Casework
If you have specific questions about your tax obligations, I would encourage you to reference the IRS Web site at http://www.irs.gov for publications and other information.  If you would like to contact your local IRS office, you may do so at:

Additionally, you may want to consider contacting the Taxpayer Advocate.  This agency operates independently within the IRS and will allow you to have an impartial review of your case. An individual will look at your concerns and review them with you.  The Nevada Taxpayer Advocate may be reached at: (702) 868-5179.