[Congressional Record Volume 153, Number 177 (Thursday, November 15, 2007)]
[Extensions of Remarks]
[Pages E2443-E2444]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 PROVIDING FOR CONSIDERATION OF H.R. 3996, TEMPORARY TAX RELIEF ACT OF 
                                  2007

                                 ______
                                 

                               speech of

                          HON. BETTY McCOLLUM

                              of minnesota

                    in the house of representatives

                        Friday, November 9, 2007

  Ms. McCOLLUM of Minnesota. Mr. Speaker, I am proud to support the 
Temporary Tax Relief Act (H.R. 3996), and I would like to congratulate 
Chairman Rangel and Speaker Pelosi for putting families first. This 
bill is necessary, fair and fiscally responsible. H.R. 3996 reverses 
the trend of tax breaks for the wealthy and instead gives a well 
deserved break to hard working middle class Americans.
  The AMT was originally designed to ensure that very wealthy 
individuals did not use loopholes and deductions to avoid paying much 
or all of their taxes, and for many years it did just that. However, 
since the AMT was not indexed for inflation, a problem ignored by past 
Congresses, it now threatens to ensnare 23 million middle-class 
families. We must act now to prevent this unintended burden on hard-
working Americans.
  Additionally, several tax benefits for research and development, 
veterans, college students, and families will be extended by this 
legislation. These are important provisions of the tax code that, if 
allowed to expire, would cause millions of American families and 
businesses to be hit with an unexpectedly high bill from the IRS this 
year.
  Unlike recent Congresses, we in the 110th Congress have made a 
commitment to pay-as-you-go spending principles. We are all best served 
by a tax code that is fair, simple and based on the ability to pay, and 
fixing the tax code for the middle class will mean lessened collections 
by the IRS. That is why this legislation pays for these tax benefits 
for middle class Americans by closing loopholes for a few wealthy 
individuals, such as those who pay less tax on the bonuses they receive 
for managing multi-million dollar hedge funds than most Americans pay 
on their hard-earned income.
  This legislation also fixes a flaw in the tax code that places an 
undue burden on families facing foreclosure. Due to this flaw, the 
outstanding debt owed on a foreclosed home is counted as income for tax 
purposes. The individuals affected by this never see this `income' and 
are clearly not in any position to pay taxes on additional tens of 
thousands of dollars. This bill will prevent this on-paper income from 
forcing American families to pay taxes on their misfortune.
  I urge my colleagues to support this much needed and fully paid-for 
tax break for middle class America.

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