WASHINGTON - Ways and Means Committee Chairman Charles B. Rangel (D-NY) today introduced H.R. 4351, the AMT Relief Act of 2007, legislation providing immediate tax relief to millions of families who would otherwise pay higher taxes under the alternative minimum tax (AMT) this year. Chairman Rangel’s bill is in direct response to a Senate Republican filibuster last week of a previous House-passed bill to provide AMT relief without adding to the national debt, due to the suggestion that some provisions in the bill were too controversial for the Senate to accept this year. Chairman Rangel’s legislation removes those provisions, instead including others that have been suggested to receive broad support. The bill would also provide a tax cut to millions of families by enhancing the refundable child tax credit, estimated to help more than 12 million children nationwide.
"Senate Republicans have defined themselves as an obstacle to providing responsible AMT relief, suggesting that provisions in previous legislation were too controversial to pass Congress this year," said Chairman Rangel. "This new bill removes those controversial pay-fors, and incorporates provisions that have been suggested to receive broad support in the Congress. The House will consider and pass this legislation tomorrow, giving the Senate one more chance to do the right thing and pass this critical tax relief without adding to the deficit.
"Senate Republicans are running out of time and excuses for their obstruction and I hope they will not continue to stand in the way of this must-pass legislation," concluded Rangel.
H.R. 4351 would extend for one year AMT relief for nonrefundable personal credits and increase the AMT exemption amount to $66,250 for joint filers and $44,350 for single filers to ensure that no additional taxpayers are liable for the AMT this year. The legislation would also increase the eligibility for the refundable child tax credit in 2008 by lowering the income floor for qualification to $8,500.
Short Summary of H.R. 4351:
* Ensures that no additional taxpayers pay the AMT this year
* Expands the refundable child tax credit to provide relief to more than 12 million children
* Closes loophole allowing hedge fund managers to defer compensation in offshore accounts
* Delays implementation of worldwide allocation of interest
* Clarifies the economic substance doctrine
* Creates uniform penalty for failure to file partnership and S corporation returns
* Increases information return penalties
* Increases general failure to file return penalties by taking inflation into account.
