Washington, D.C. -— U.S. Rep. Bob Etheridge (D-Lillington), a member of the House Budget Committee, voted today for legislation that provides $50 billion in middle-class tax relief and saves 27,976 families in the Second Congressional District from paying higher taxes under the Alternative Minimum Tax.
The Temporary Tax Relief Act is fiscally responsible and fully paid for.
“This common-sense legislation will cut taxes for working families who have seen the cost of health care, gasoline and education sky rocket over the last six years,” said Etheridge. “The legislation is also fiscally responsible and reflects our commitment to reverse the pattern of creating record national debt owed to foreign countries and passing our debts down to future generations.”
The Alternative Minimum Tax was originally designed to ensure very wealthy individuals do not avoid paying income tax. The tax now threatens to impact middle-class families and raise taxes on 23 million Americans if Congress fails to take action.
The Temporary Tax Relief Act of 2007 protects 23 million middle-class families from being hit by the Alternative Minimum Tax. It also includes other provisions that provide tax relief to middle-class families. The bill:
· Provides 30 million homeowners with property tax relief
· Helps 12 million children by expanding the child tax credit
· Benefits 11 million families through the State and local sales tax deduction
· Helps 4.5 million families better afford college with the tuition deduction
· Saves 3.4 million teachers money with a deduction for classroom expenses
· Provides thousands of American troops in combat with tax relief under the Earned Income Tax Credit
The legislation is fiscally responsible and does require borrowing money or adding to the deficit. To pay for middle-class tax relief the bill closes tax loopholes that allow multi-millionaires on Wall Street to pay a lower tax rate on their income than other working Americans, such as teachers and firefighters. The bill also closes current loopholes that allow individuals to use offshore tax havens as unlimited retirement accounts, while middle-class families play by the rules and pay their fair share of taxes.