WASHINGTON - The U.S. House of Representatives today voted 216-193 in favor of a fiscally responsible tax package to prevent more than 23 million families from a tax increase under the alternative minimum tax (AMT) and extend expiring relief for millions more. The bill, H.R. 3996, the Temporary Tax Relief Act of 2007, would ensure that no additional taxpayers pay the AMT this year while also extending popular tax credits and deductions such as the deduction for State and local sales tax, tuition, out-of-pocket expenses for teachers and research and development that would otherwise expire at the end of the year.
This responsible tax relief is fully offset by closing loopholes and eliminating narrowly targeted tax benefits enjoyed by a privileged few to ensure that America does not accrue additional debt. Ways and Means Committee Chairman Charles B. Rangel (D-NY) issued the following statement upon passage:
“This bill poses a simple question: whose side are you on? The choices are clear. A vote in favor of this bill was a vote in favor of responsible tax relief for millions of hardworking, middle-class families. Those who voted against this bill chose to protect the special interests of a privileged few at the cost of tax relief for millions. The House of Representatives did the fair, responsible thing and the American people are now watching the U.S. Senate to see whose side they are on.
“I don’t think the 23 million families facing a tax increase this year care who is right or wrong, they care that we did the right thing and gave them relief. Republicans have come up with some entertaining and creative explanations for how this is really not tax relief because it hasn’t hit taxpayers and therefore you don’t have to make up the lost revenue. They believe you can simply borrow the money and the problem disappears, but the fact of the matter is - any responsible budget office will tell you that if you’re going to lose $50 billion, you have to make that up somewhere, or that is called debt.
“Leadership means responsibility - it means we have an obligation to look out for future economic growth in our nation and the well-being of our children and grandchildren and adding to the debt makes it difficult to do these things.
“At the end of the day, everyone wants to give relief, but not everyone wants to pay for it. This bill is an excellent opportunity for the American people to see the difference in leadership. We are not hiding behind anything, we are proud of what we are doing. We had hearings and we asked the people to distinguish between fund managers and partners receiving a windfall for managing other people’s money, while others pay higher taxes for doing the same job. We don’t believe that is fair or equitable and we have closed that loophole."
Some Senate Republicans have indicated that temporary AMT relief should not be offset, thereby adding to the Federal deficit. They have threatened to filibuster a revenue-neutral tax package, preventing this must-pass bill from reaching the President’s desk for signature.
