Gordon Votes For Tax Relief For Middle Class Families
December 13, 2007, WASHINGTON – On Wednesday (Dec. 13), U.S. Rep. Bart Gordon voted for legislation to provide tax relief to middle class families without adding to the nation’s deficit.
“We can provide tax relief in a fiscally responsible way,” said Gordon. “This bill will help more than 20 million hardworking American families by closing loopholes for hedge fund managers and multinational corporations that shift funds to offshore tax shelters.”
The legislation passed by the U.S. House of Representatives, H.R. 4351, would provide a patch in the tax code to ensure middle class families are not subject to the alternative minimum tax, which was created to ensure the wealthiest individuals did not escape paying taxes altogether. The AMT formula has not been adjusted for inflation, meaning middle class families could be subject to the tax if the law is not patched.
“Unless Congress provides AMT relief, about 300,000 Tennesseans will be forced to pay this tax on their 2007 returns,” said Gordon. “In my district alone, more than 37,000 families would be burdened by the tax. I don’t want hardworking teachers and firefighters to be taxed unfairly, and that’s why I voted to fix the law.”
Gordon said he had hoped the bill would include an extension of the state sales tax deduction, which would allow Tennesseans to deduct state sales tax on their federal tax returns. That provision was removed from the bill.
“I am disappointed the bill did not include an extension to allow Tennesseans to deduct state sales tax, but I will continue working to get that extension,” said Gordon. “Tennesseans end up paying more taxes to the federal government than residents of states that collect an income tax. Residents of other states are able to deduct their state income taxes from their federal returns, so it’s only fair to allow Tennesseans to deduct our sales tax.”
Gordon noted that Tennesseans can still deduct the state sales tax on the federal tax returns they will file for the 2007 calendar year.
