Washington, D.C. — The U.S. House of Representatives today voted in favor of a fiscally responsible tax package to prevent more than 23 million families from a tax increase under the alternative minimum tax (AMT).
H.R. 3996, the Temporary Tax Relief Act of 2007, will provide millions of middle-class families with tax cuts and help grow our economy without increasing the national debt.
The bill would prevent more than 23 million families from a tax increase under the alternative minimum tax (AMT) while also extending popular tax credits and deductions that expire at the end of the year. This tax relief is fully offset by closing loopholes and eliminating narrowly targeted tax benefits enjoyed by a privileged few.
“This responsible tax relief package puts money back in the pockets of millions of middle-class families and protects future generations from tax increases by not adding to our national debt,” said Rep. Raúl M. Grijalva. “For the past few years, Congress has passed tax cuts that overwhelmingly benefit the wealthiest Americans, and left the rest of us to foot the bill. It’s time to advance tax fairness and promote fiscal responsibility.”
H.R. 3996 will:
- Provide a one-year fix to prevent 23 million middle-income and upper-middle income families from having to pay the Alternative Minimum Tax. For a single mother working fulltime in a minimum wage job, the bill would mean the difference between a child tax credit of just $35 and a credit of $568.
- Provide 30 million homeowners with property tax relief;
- Help 12 million children by expanding the child tax credit;
- Benefit 11 million families through the State and local sales tax deduction;
- Help 4.5 million families better afford college with the tuition deduction;
- Save 3.4 million teachers money with a deduction for classroom expenses;
- Provide thousands of American troops in combat with tax relief under the Earned Income Tax Credit; and
- Close a tax loophole that allows wealthy private investment fund managers to pay taxes at lower rates than ordinary Americans.