[Congressional Record Volume 153, Number 53 (Tuesday, March 27, 2007)]
[House]
[Pages H3150-H3153]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
KATRINA HOUSING TAX RELIEF ACT OF 2007
Mr. RANGEL. Madam Speaker, I move to suspend the rules and pass the
bill (H.R. 1562) to amend the Internal Revenue Code of 1986 to extend
and expand certain rules with respect to housing in the GO Zones, as
amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 1562
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Katrina Housing Tax Relief
Act of 2007''.
SEC. 2. EXTENSION AND EXPANSION OF LOW-INCOME HOUSING CREDIT
RULES FOR BUILDINGS IN THE GO ZONES.
(a) Time for Making Low-Income Housing Credit
Allocations.--Subsection (c) of section 1400N of the Internal
Revenue Code of 1986 (relating to low-income housing credit)
is amended by redesignating paragraph (5) as paragraph (6)
and by inserting after paragraph (4) the following new
paragraph:
``(5) Time for making low-income housing credit
allocations.--Section 42(h)(1)(B) shall not apply to an
allocation of housing credit dollar amount to a building
located in the Gulf Opportunity Zone, the Rita GO Zone, or
the Wilma GO Zone, if such allocation is made in 2006, 2007,
or 2008, and such building is placed in service before
January 1, 2011.''.
(b) Extension of Period for Treating GO Zones as Difficult
Development Areas.--
(1) In general.--Subparagraph (A) of section 1400N(c)(3) of
such Code is amended by striking ``2006, 2007, or 2008'' and
inserting ``the period beginning on January 1, 2006, and
ending on December 31, 2010''.
(2) Conforming amendment.--Clause (ii) of section
1400N(c)(3)(B) of such Code is amended by striking ``such
period'' and inserting ``the period described in subparagraph
(A)''.
(c) Community Development Block Grants Not Taken Into
Account in Determining if Buildings Are Federally
Subsidized.--Subsection (c) of section 1400N of such Code
(relating to low-income housing credit), as amended by this
Act, is amended by redesignating paragraph (6) as paragraph
(7) and by inserting after paragraph (5) the following new
paragraph:
``(6) Community development block grants not taken into
account in determining if buildings are federally
subsidized.--For purpose of applying section 42(i)(2)(D) to
any building which is placed in service in the Gulf
Opportunity Zone, the Rita GO Zone, or the Wilma GO Zone
during the period beginning on January 1, 2006, and ending on
December 31, 2010, a loan shall not be treated as a below
market Federal loan solely by reason of any assistance
provided under section 106, 107, or 108 of the Housing and
Community Development Act of 1974 by reason of section 122 of
such Act or any provision of the Department of Defense
Appropriations Act, 2006, or the Emergency Supplemental
Appropriations Act for Defense, the Global War on Terror, and
Hurricane Recovery, 2006.''.
SEC. 3. SPECIAL TAX-EXEMPT BOND FINANCING RULE FOR REPAIRS
AND RECONSTRUCTIONS OF RESIDENCES IN THE GO
ZONES.
Subsection (a) of section 1400N of the Internal Revenue
Code of 1986 (relating to tax-exempt bond financing) is
amended by adding at the end the following new paragraph:
``(7) Special rule for repairs and reconstructions.--
``(A) In general.--For purposes of section 143 and this
subsection, any qualified GO Zone repair or reconstruction
shall be treated as a qualified rehabilitation.
``(B) Qualified go zone repair or reconstruction.--For
purposes of subparagraph (A), the term `qualified GO Zone
repair or reconstruction' means any repair of damage caused
by Hurricane Katrina, Hurricane Rita, or Hurricane Wilma to a
building located in the Gulf Opportunity Zone, the Rita GO
Zone, or the Wilma GO Zone (or reconstruction of such
building in the case of damage constituting destruction) if
the expenditures for such repair or reconstruction are 25
percent or more of the mortgagor's adjusted basis in the
residence. For purposes of the preceding sentence, the
mortgagor's adjusted basis shall be determined as of the
completion of the repair or reconstruction or, if later, the
date on which the mortgagor acquires the residence.
``(C) Termination.--This paragraph shall apply only to
owner-financing provided after the date of the enactment of
this paragraph and before January 1, 2011.''.
SEC. 4. GAO STUDY OF PRACTICES EMPLOYED BY STATE AND LOCAL
GOVERNMENTS IN ALLOCATING AND UTILIZING TAX
INCENTIVES PROVIDED PURSUANT TO THE GULF
OPPORTUNITY ZONE ACT OF 2005.
(a) In General.--The Comptroller General of the United
States shall conduct a study of the practices employed by
State and local governments, and subdivisions thereof, in
allocating and utilizing tax incentives provided pursuant to
the Gulf Opportunity Zone Act of 2005 and this Act.
(b) Submission of Report.--Not later than one year after
the date of the enactment of this Act, the Comptroller
General shall submit a report on the findings of the study
conducted under subsection (a) and shall include therein
recommendations (if any) relating to such findings. The
report shall be submitted to the Committee on Ways and Means
of the House of Representatives and the Committee on Finance
of the Senate.
(c) Congressional Hearings.--In the case that the report
submitted under this section includes findings of significant
fraud, waste or abuse, each Committee specified in subsection
(b) shall, within 60 days after the date the report is
submitted under subsection (b), hold a public hearing to
review such findings.
SEC. 5. MODIFICATION OF COLLECTION DUE PROCESS PROCEDURES FOR
EMPLOYMENT TAX LIABILITIES.
(a) In General.--Section 6330(f) of the Internal Revenue
Code of 1986 (relating to jeopardy and State refund
collection) is amended--
(1) by striking ``; or'' at the end of paragraph (1) and
inserting a comma,
(2) by adding ``or'' at the end of paragraph (2), and
(3) by inserting after paragraph (2) the following new
paragraph:
``(3) the Secretary has served a disqualified employment
tax levy,''.
(b) Disqualified Employment Tax Levy.--Section 6330 of such
Code (relating to notice and opportunity for hearing before
levy) is amended by adding at the end the following new
subsection:
``(h) Disqualified Employment Tax Levy.--For purposes of
subsection (f), a disqualified employment tax levy is any
levy in connection with the collection of employment taxes
for any taxable period if--
``(1) the person subject to the levy (or any predecessor
thereof) requested a hearing under this section with respect
to unpaid employment taxes arising in the most recent 2-year
period before the beginning of the taxable period with
respect to which the levy is served, and
``(2) such levy is served before February 29, 2016.
For purposes of the preceding sentence, the term `employment
taxes' means any taxes under chapter 21, 22, 23, or 24.''.
(c) Effective Date.--The amendments made by this section
shall apply to levies served on or after the date that is 120
days after the date of the enactment of this Act.
SEC. 6. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
Subparagraph (B) of section 401(1) of the Tax Increase
Prevention and Reconciliation Act of 2005 is amended by
striking ``106.25 percent'' and inserting ``106.45 percent''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New
York (Mr. Rangel) and the gentleman from Michigan (Mr. Camp) each will
control 20 minutes.
The Chair recognizes the gentleman from New York.
Mr. RANGEL. Mr. Speaker, once again I find myself thanking Mr.
McCrery, the ranking member, and members of the minority on the Ways
and Means Committee for moving forward to a piece of legislation,
agreeing that it go to the suspension calendar and, more importantly,
working with us in bringing about changes in order to make certain that
we have a pay-for that is appreciated by the House.
This is important legislation. The Nation suffered a tremendous
natural setback with Katrina. Thousands of people in Mississippi and
Louisiana felt the pain. And somehow we are sluggishly moving towards
some type of solution of this real problem.
One of the major problems, of course, is housing, people not being
able to come back. We on the Ways and Means Committee can play some
small part in putting together tax incentives to move forward, to make
certain that these people have a place to stay and go back to their
home.
More important, I am so pleased that John Lewis will be managing this
bill, a man of compassion, a man of understanding, a man that
understands the real pain that people have felt and continue to feel. I
don't think there is any Member in the House that I would rather see
associated with a bill that brings some type of relief to people who
have felt so much pain.
So, Mr. Speaker, with your permission, I would like to ask Mr. Lewis
from the sovereign State of Georgia, an outstanding Member of Congress,
to
[[Page H3151]]
manage the remainder of this time and to distribute it as he sees fit.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from New York?
There was no objection.
Mr. CAMP of Michigan. Mr. Speaker, I am pleased to rise in support of
H.R. 1562, the Katrina Housing Tax Relief Act of 2007, which was
introduced by my friends, the chairman and ranking member of the
Committee on Ways and Means.
It is unfortunate that we continue to deal with the aftermath of the
devastating hurricanes of 2005. The imprint left by Hurricanes Katrina
and Rita on the Gulf Coast has been well documented. Unfortunately, the
slow pace of recovery has also been well documented, despite
substantial efforts by the Ways and Means Committee and the Congress as
a whole to provide direct and indirect support to the rebuilding
efforts.
As part of that effort, the Congress enacted the Gulf Opportunity
Zone Act of 2005. Among its provisions, the measure authorized a
tenfold increase in Section 42 low-income housing tax credits for
States in the Gulf Opportunity Zone. At the time, our hope was that
putting a fast expiration on those credits would lead to the rapid
rebuilding of this much-needed housing. Our experience, however, has
shown otherwise. Delays in getting necessary permitting and insurance,
combined with the high cost of materials and a shortage of skilled
labor, have created a situation in which many of the allocated credits
are likely to go unused by the current December 31, 2008, deadline.
The good news for the GO Zone is that credits not used by the end of
2008 will not be lost. Instead, they will revert back to the State for
future allocation. But the difficulties on the ground create
uncertainty as to whether these projects will be placed in service by
the end of 2008.
Witnesses at an Oversight Subcommittee hearing earlier this month
warned that many deserving projects that had been allocated credits in
Louisiana and Mississippi by the State housing agencies are going
unfunded and therefore will not be built by the end of next year.
The measure before us makes several changes to the rules governing
low-income housing tax credits in the GO Zone. These changes expire at
the end of 2010. Hopefully, the modifications we are making today will
allow the States to get these housing projects financed and constructed
long before that sunset date.
It is my understanding from the Joint Committee that the cost of this
bill is not the result of additional credits being used. Rather, it is
that credits will be used more quickly than expected under current law.
Under these circumstances, I believe the changes in the bill before
us are an appropriate response to the unique and unprecedented
challenges in the gulf coast region and will help ensure that goals of
the 2005 legislation are met. Unique circumstances sometimes require
unique solutions.
Finally, I would like to comment on a provision of the bill being
used to offset these costs. As originally considered by the committee,
the measure would slightly alter the circumstances under which the
government can levy the assets of an employer for unpaid employment
taxes. During committee considerations, questions were raised about the
provision, and I am pleased that the bill we are considering today
contains an important modification to the provision that ensures that
employers who unknowingly fall behind in their payment of employment
taxes are properly protected.
On that count, particular thanks are due to the chairman, the staff
of the IRS and the Treasury and the staff of the Joint Committee on
Taxation for their help in working through this difficult but important
issue.
Mr. Chairman, let me again express my appreciation to you and your
staff for working across the aisle to craft this measure that I hope
will make it possible for thousands of residents of the gulf States to
go home soon.
Mr. Speaker, I reserve the balance of my time.
Mr. LEWIS of Georgia. Mr. Speaker, I yield myself as much time as I
may consume.
Mr. Speaker, on March 13, 2007, the Ways and Means Subcommittee on
Oversight held a hearing on housing tax issues related to the
rebuilding of communities affected by Hurricanes Katrina, Rita and
Wilma. These hurricanes created and caused more damage than any other
natural disaster and left over 700,000 residents in the Gulf Coast
without housing.
The Congress has provided $15 billion in tax relief to victims of the
hurricanes, but it is clear that we must do more and we can do more.
The Katrina Housing Tax Relief Act of 2007 will help families affected
by the hurricane to return home. This bill will extend incentives for
low-income rental housing. It will also expand existing incentives so
they can be used to refinance homes that need to be rebuilt from
scratch.
Mr. Speaker, this is a good bill. This is a necessary bill. I
wholeheartedly support H.R. 1562 and urge all of my colleagues to vote
in favor of this bill.
Mr. Speaker, I reserve the balance of my time.
Mr. CAMP of Michigan. At this time, I yield such time as he may
consume to the distinguished gentleman from New York, a member of the
Ways and Means Committee.
(Mr. REYNOLDS asked and was given permission to revise and extend his
remarks.)
Mr. REYNOLDS. I thank the gentleman from Michigan for yielding me
this time, and I rise in support of the amended version of H.R. 1562
that is before us. I greatly appreciate the remarks of the ranking
member of this side, Dave Camp, as he outlined the legislation and our
support for it and the need for it, and the amendments that were
brought forth by Chairman Rangel and by Ranking Member McCrery.
Mr. Speaker, it has been that type of cooperation in working on
legislation such as this that we were able to take a bill that is
vitally needed in the Katrina zone for low-income housing tax credits
to work and do their job, but to also make it work for the taxpayers as
we consider the PAYGO requirements set forth by the rules of the House.
I believe that we have worked diligently, through the efforts of staff
on both the majority and the minority and Joint Tax as well as IRS, as
has been outlined by previous speakers, to bring forth legislation that
will work to get the job done for Katrina victims, for the States and,
importantly, to see a recovery come about under the intent of this
legislation. So I am going to support it.
I greatly appreciate the cooperation of Chairman Rangel and Ranking
Member McCrery in working forward to have legislation language that
meets some of the outlines of concerns that Mr. Johnson and I had and
have been fully met by their hard work.
{time} 1945
General Leave
Mr. LEWIS of Georgia. Mr. Speaker, I ask unanimous consent that all
Members have 5 legislative days to revise and extend their remarks and
include extraneous material on the bill, H.R. 1562.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Georgia?
There was no objection.
Mr. LEWIS of Georgia. Mr. Speaker, I yield 2 minutes to the gentleman
from New Jersey, Congressman Pascrell.
(Mr. PASCRELL asked and was given permission to revise and extend his
remarks.)
Mr. PASCRELL. Mr. Speaker, Hurricane Katrina was more than a natural
catastrophe. The painful images of folks suffering, dying, and calling
desperately for help will forever be seared in our collective
conscience. I rise today in strong support of the Katrina Housing
Relief Act, critical legislation designed to respond to the needs of
hurricane victims by getting affordable housing in the gulf coast
region expeditiously built.
I want to commend Chairman Rangel for the steady hand he has
displayed in crafting this legislation and also for the collegial
spirit he has fostered on the Ways and Means Committee thus far. This
is the second noteworthy tax package that has come to the floor in
recent weeks, and I am heartened at the bipartisanship that has been
displayed. And when it comes to helping those who suffered from
Katrina, bipartisanship is the only way to operate.
[[Page H3152]]
Unfortunately, the immediate response from Washington was handled
poorly, insufficiently, and only exacerbated the suffering. Today, we
take a step in the right direction. We need to get help to people and
get them back in their homes, and this bill does that.
H.R. 1562 strengthens existing tax incentives to builders of
affordable rental housing by extending the current deadline within
which those units must be inhabited by an extra 2 years, to 2010. The
bill makes it easier for a greater number of homeowners to benefit from
tax-exempt bonds issued by local governments for substantial
renovations and to refinance existing residential mortgage loans.
These are prudent, practical measures that will do a great deal of
good for those in need. I implore my colleagues to support this bill. I
again commend the leadership for bringing this to the floor.
Mr. CAMP of Michigan. Mr. Speaker, I yield such time as he may
consume to the gentleman from Louisiana (Mr. Boustany).
Mr. BOUSTANY. Mr. Speaker, I rise in support of this bill. I want to
thank my colleague. I also want to thank Chairman Rangel and Ranking
Member McCrery for bringing this bill to the floor.
And while I am pleased that this bill is being brought to the floor
this evening, its title is actually a misnomer. The Katrina Housing Tax
Relief Act also covers many areas hit by my district in southwest
Louisiana and southeast Texas, those areas hit by Hurricane Rita.
My district in southwest Louisiana received about $10 billion in
damage from Hurricane Rita, and this was to small rural communities
that don't have the ability to bounce back. As we recover in southwest
Louisiana, we have learned all too well that government cannot
micromanage the full recovery process, and this GO-Zone legislation has
played a very important role in providing a foundation for businesses
and families to get back on their feet. So I am pleased that today's
legislation extends many of these successful provisions and programs
for southwest Louisiana communities.
Two of the most important include an extension of the placed-in-
service deadline and a waiver of the 10 percent rule for GO-Zone
credits. These provisions will help those who are on the front lines of
our housing recovery, rather than revert funding back to the State.
Additionally, the bill allows GO-Zone low-income housing projects to
receive additional federally subsidized loans without facing a
reduction in tax credits.
Mr. Speaker, while I take issue with the bill's title, I fully
support its provisions. It is a good bill. Again, I thank Chairman
Rangel and Ranking Member McCrery for their support and urge support of
this bill.
Mr. LEWIS of Georgia. Mr. Speaker, I yield 3\3/4\ minutes to the
gentleman from Louisiana, who represents New Orleans in the Congress,
Mr. Jefferson.
Mr. JEFFERSON. I thank the gentleman for yielding.
Mr. Speaker, I rise in support of H.R. 1562, the Katrina Housing Tax
Relief Act of 2007.
I am extremely grateful to Chairman Rangel, Ranking Member McCrery,
Mr. Lewis, Mr. Camp, and the members of the Ways and Means Committee
for their bipartisan support of this bill and for bringing it to the
floor in this expeditious manner. As Chairman Rangel stated, it
represents this Congress ``doing our part,'' he said, ``to make things
right and that begins with helping people get back to their homes.''
Few needs are greater in the city of New Orleans and surrounding
areas than affordable housing. One New Orleanian who currently resides
in a FEMA trailer 1 hour north of the city surmises that many people
want to move back to the city, but after looking at the rental prices
has said, who could afford that? In the gulf coast, Katrina destroyed
over one-quarter million homes. More than 30 percent of these losses
involved affordable housing losses, most of which were rental
properties.
Post-Katrina, the average rental payment in New Orleans has risen 70
percent. Before Katrina, Mary Wright of our city paid about $300 in
rent. Now she pays triple that amount. There are folks who were paying
about $500 in rent are now paying $850. New Orleans' population has
diminished to only 237,000 residents from 437,000 before the storm. It
is not because residents do not wish to return. It is because many
cannot afford to return. The lack of affordable housing has caused not
only a problem for citizens wishing to return, but it is also a problem
for developers, planners, and investors who are strapped in their
options to increase affordable housing. The lack of quality affordable
housing that is sustainable discourages the return of a workforce and
the restoration of the economy of the city.
The Low Income Housing Tax Credit is of great assistance to helping
our people of the gulf region return home. The credits will be
competitively awarded to qualified developers who are then put under
the constant scrutiny by our State housing authority to ensure that the
buildings that are built are quality affordable housing. The safeguard
in the system also provides for 30 years of high-quality housing, and
for 15 years the rental properties developed using these tax credits
must be maintained as affordable units. Should the properties not
continue to meet the criteria specified when receiving the reward, the
IRS will recapture the tax credits.
In December of 2005, Congress passed the Gulf Opportunities Zone Act,
and among other much needed tax incentives it included a significant
increase in housing credits for the Gulf States, and a 130 percent
basis boost in which they treated all regions as difficult to develop
areas, thus allowing them more funding for rebuilding.
The gulf coast faces many obstacles to redevelopment. Extending the
placed-in-service deadline for both the credits and for the treatment
of difficult to develop areas will remove one of them by giving
planners and developers in these communities a reasonable time to
effectively reinvest in that community.
Finally, mortgage revenue bonds have provided over 3.5 million lower-
income Americans affordable homeownership opportunities and another 1
million with rental housing opportunities. Since Katrina, they have
backed many homeowners but their utility has been limited in that these
bonds are typically for first-time home buyers only. Provisions in this
legislation waive this requirement for those whose homes were damaged
by the hurricanes. This will assist with the rebuilding efforts,
allowing mortgage revenue bond proceeds to go towards refinancing home
loans, to free up funds for the reconstruction of homes and renewal of
families.
We need to do everything we can to facilitate recovery, and this bill
removes critical obstacles to rebuilding the homes, rental properties,
indeed the very life blood of the families of the gulf region. I urge
passage and full support of this legislation.
Mr. CAMP of Michigan. Mr. Speaker, I reserve the balance of my time.
Mr. LEWIS of Georgia. Mr. Speaker, I yield 2\1/4\ minutes to the
gentleman from Louisiana (Mr. Melancon).
Mr. MELANCON. Mr. Speaker, I thank the gentleman. I would like to
thank the leadership for the bipartisan effort also. It has been a long
18, going on 19, months for the folks of Louisiana; and this is the
kind of thing that they have needed for a long time.
I am here today to speak in support of the Katrina Housing Tax and,
as Mr. Boustany pointed out, the Rita Housing Tax, also, which will
extend important tax credits and waivers that are boosting rebuilding
efforts along the gulf coast.
It is hard to exaggerate the devastation Hurricanes Katrina and Rita
caused in south Louisiana. Over 1 million people had to flee their
homes, and over 200,000 homes were damaged or completely destroyed. In
St. Bernard Parish, a community to the east of New Orleans that I
represent, it is reported that only five or six homes out of the 27,000
were inhabitable after the storm. It will take many years to repair the
damage Katrina and Rita and the levee failures caused in just a few
days.
The enormous extent of the damage and the unprecedented time and
money it will take to recover are why we need to pass the Katrina-Rita
Housing Relief Act. For south Louisiana to rebuild, we need to continue
encouraging developers to build affordable housing,
[[Page H3153]]
not just high-priced condos. There is a severe housing shortage in the
region, and rental prices have increased by 39 percent and more since
the storm. Home sale prices in suburban parishes have also skyrocketed.
Average working people can't move home because they can't find
affordable housing.
One of the most important features of this bill is the extension of
the Gulf Opportunity Zone low-income housing tax credit until the end
of 2010. Louisiana is offering these tax credits to developers who
build affordable housing in the hurricane-affected communities, but
current law requires that developers have the project built and
occupied by the end of 2008.
In the post-storm world of south Louisiana, this is almost
impossible. The Housing Financing Agency in New Orleans estimates that
65 percent of the affordable housing units under development, about
11,050 units, won't make the deadline to be available for rent by the
deadline at the end of 2008. Add all the extenuating circumstances of
post-Katrina Louisiana, mold remediation for flood-damaged
rehabilitation projects, elevation of property, getting permits, going
through the zoning requirements, all the things that take time,
including needing water, sewer, and gas lines, there is no way that
developers can finish.
Finally, as a fiscal conservative and a Blue Dog, I want to point out
that this bill follows House PAYGO rules and will not increase the
deficit. In fact, the offsets that are contained in the bill will cause
an increase in revenue.
I thank the gentleman from Georgia, and I thank the bipartisan effort
of the committee.
Mr. LEWIS of Georgia. Mr. Speaker, I yield myself as much time as I
may consume.
I fully support H.R. 1562, the Katrina Housing Relief Act of 2007.
Adequate and affordable housing is a basic human right, and today
Congress is stepping in again to give our citizens of the gulf coast
some help. This bill will provide tax incentives to ensure that
adequate and affordable housing is available in the gulf coast region.
I urge all of my colleagues on both sides of the aisle to vote
``yes'' for this bill.
Mr. SAM JOHNSON of Texas. I rise today in support of the amended
version of H.R. 1562. During the Committee debate on this bill I raised
concerns about the revenue offset used to pay for this legislation. The
original bill would have permitted the IRS to seize the assets of a
taxpayer prior to a hearing. The provision was scored as raising $240
million. The reason for the change was that there are some taxpayers
who are serial abusers of the payroll tax withholding mechanism who
needed to be shut down to prevent a drain on revenues.
The problem is that we cannot begin to close the tax gap at the
expense of basic civil liberties. We would have a taxpayer revolt at
such heavy-handed tactics. Congress put in place many taxpayer
protections against heavy-handed IRS tactics and I think we need to be
very careful as we contemplate rolling back any of them in the name of
closing the ``tax gap.''
The amended bill before us now would go after the serial abusers of
the payroll tax system. It would require that if someone has already
been through the hearing process in the last two years, then they don't
get to keep scamming the tax system. They cannot hide behind the
protections meant for taxpayers who have simply made a mistake in
filing payroll taxes for their employees.
The protection of having a hearing prior to IRS seizure of assets is
important in many circumstances. One of the leading reasons for this
protection is innocent spouse relief. If a husband messes up his
company's payroll taxes in one quarter, the Committee approved bill and
the version already approved by the other body, would have allowed the
IRS to seize his wife's assets and give her no ability to claim
innocent spouse relief until roughly eight months after the seizure. I
don't think this is good policy and I think it is a lousy way to close
the ``tax gap.''
I commend Chairman Rangel and Ranking Member McCrery for working to
be sure that these situations are addressed by the amendment we have
worked out. I hope that whenever the House and Senate put this revenue
raiser into a final agreement later this year, that the House version
prevails.
Again, I support the version of this legislation that we are debating
on the House floor today and I want to personally thank the Chairman
and Ranking Member for working so hard to address these concerns.
Mr. LEWIS of Georgia. Mr. Speaker, I yield back the balance of my
time.
Mr. CAMP of Michigan. Mr. Speaker, I yield back the balance of my
time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from New York (Mr. Rangel) that the House suspend the rules
and pass the bill, H.R. 1562, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________