[Congressional Record (Bound Edition), Volume 153 (2007), Part 18]
[House]
[Page 25281]
[From the U.S. Government Publishing Office, www.gpo.gov]




                       FORECLOSURE TAX RELIEF ACT

  (Mr. BISHOP of New York asked and was given permission to address the 
House for 1 minute.)
  Mr. BISHOP of New York. Mr. Speaker, I rise tonight as a proud 
cosponsor of the Foreclosure Tax Relief Act. I commend its cosponsor, 
my colleague from Ohio, Mr. Space, as well as the chairman of the Ways 
and Means Committee, Mr. Rangel, for agreeing to take up legislation 
that would give a tax break to middle-class homeowners who have been 
caught up in the subprime mortgage fallout.
  Nearly 3,000 homeowners in Suffolk County, New York alone, that's one 
out of every 180 homes in my district, have joined 2.2 million families 
nationwide whose subprime loans have already failed or will end in 
foreclosure. Adding insult to injury, they face massive tax bills once 
any portion of their mortgage is cancelled. The IRS treats that 
forgiven debt as income and can even tack on interest and penalties.
  In response to this unfair phantom tax, the Foreclosure Tax Relief 
Act would set the tax exclusion for middle-class families up to $50,000 
in forgiven debt on first mortgages and primary residences. Therefore, 
I urge my colleagues to support foreclosure tax relief legislation.

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