November 9, 2007
hp-663

Statement by Secretary Henry M. Paulson, Jr. on AMT Delay and Need to Help Homeowners

Washington, DC--Treasury Secretary Henry M. Paulson, Jr. today issued the following statement:

"Since February, we have asked the Congress to adopt one-year AMT relief that does not raise other taxes.  Unfortunately, the House has passed a bill today that raises the likelihood of confusion for millions of taxpayers.   

"As we have made clear, until legislation is enacted that provides AMT relief for 2007, the IRS will not be able to complete substantial preparations for the upcoming filing season, meaning that millions of filers will – at a minimum – suffer delays in having their returns processed and refunds paid. 

"I am further concerned that the Senate has made clear it will not take up this urgently needed legislation until December.  I urge Congress to enact one-year AMT relief without raising taxes as quickly as possible so the IRS can adjust and complete its preparations for the upcoming filing season with the least possible delays and confusion for taxpayers.

"I'm also eager to see Congressional action on legislation we've asked for to help homeowners avoid foreclosure.  The Administration is making a concerted effort on this front.  HUD implemented FHA Secure, and as a result FHA hopes to help 240,000 homeowners refinance next year.  As you know, we've been working with a private sector alliance of mortgage servicers and financial counselors, Hope Now, to enable struggling homeowners to find affordable mortgages and avoid losing their homes.  And the President put forward FHA modernization legislation that HUD estimates could help an additional 200,000 families access a safe, fair, and affordable FHA-backed loan. This legislation still hasn't reached the President's desk.  As a result, we are missing opportunities to assist struggling homeowners.

"Our foreclosure avoidance efforts are critical to helping millions of homeowners keep their homes.  These efforts also provide support to the broader credit markets.  Preventing avoidable foreclosures will reduce the impact of the housing slowdown on mortgage-backed securities and on the balance sheets of those institutions holding mortgage-backed securities.  It will also bring relief to homeowners, our communities, and our economy." 

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