The Temporary Tax Relief Act of 2007
On December 19th, the House passed the the final version of the Temporary Tax Relief Act of 2007, Senate amendment to H.R. 3996.
This bill protects 23 million middle-class families from being hit by the alternative minimum tax. The bill would extend for one year AMT relief for nonrefundable personal credits and increases the AMT exemption amount to $66,250 for joint filers and $44,350 for individuals. The AMT was put into place to ensure that the wealthiest families did not escape paying taxes altogether. In 2000, the AMT impacted about less than 1 percent of taxpayers, but it has grown to be such a problem that it now threatens teachers and firefighters – a far cry from its original intent. Without this bill, hardworking American families would be hit with an average tax increase of nearly $2,000.
All year, the House has fought for fiscal responsibility and this fall passed this legislation to provide millions of middle-class families with tax cuts without increasing the national debt.
House Democrats have tried every possible alternative to adhere to pay–as-you-go budget rules -- reversing the years of failed Republican policies that have mortgaged our grandchildren’s future with additional foreign-owned debt.
But Senate Republicans and President Bush have been a huge roadblock to this new direction of fiscal responsibility. And, we cannot hold millions of middle-class families hostage due to misplaced Republican priorities.
On November 8th, President Bush threatened to veto and now Senate Republicans rubber stamped the President’s fiscal irresponsibility with virtually all of them voting twice against paying for the bill, objecting to closing tax loopholes for the wealthiest Americans.
For six years President Bush and Congressional Republicans enacted AMT patches and charged the bills to future generations – adding more than $100 billion to the national debt.
The stubborn fiscal irresponsibility of President Bush and Senate Republicans has delayed getting middle-class tax relief approved in a timely fashion, and resulted in the Senate passing AMT relief legislation that is not paid for – passing debt instead of prosperity onto our children and grandchildren.
Democrats are determined to protect middle-class tax payers from the AMT before we adjourn for the year, and we are very disappointed that Republicans continue to block responsible relief.