[Congressional Record (Bound Edition), Volume 153 (2007), Part 3]
[House]
[Pages 4518-4525]
[From the U.S. Government Publishing Office, www.gpo.gov]




                 SMALL BUSINESS TAX RELIEF ACT OF 2007

  Mr. RANGEL. Mr. Speaker, I move to suspend the rules and pass the 
bill

[[Page 4519]]

(H.R. 976) to amend the Internal Revenue Code of 1986 to provide tax 
relief for small businesses, and for other purposes, as amended.
  The Clerk read as follows:

                                H.R. 976

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF 
                   CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Small 
     Business Tax Relief Act of 2007''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; amendment of 1986 Code; table of contents.
Sec. 2. Extension and modification of work opportunity tax credit.
Sec. 3. Extension and increase of expensing for small business.
Sec. 4. Determination of credit for certain taxes paid with respect to 
              employee cash tips.
Sec. 5. Waiver of individual and corporate alternative minimum tax 
              limits on work opportunity credit and credit for taxes 
              paid with respect to employee cash tips.
Sec. 6. Family business tax simplification.
Sec. 7. Denial of lowest capital gains rate for certain dependents.
Sec. 8. Suspension of certain penalties and interest.
Sec. 9. Time for payment of corporate estimated taxes.

     SEC. 2. EXTENSION AND MODIFICATION OF WORK OPPORTUNITY TAX 
                   CREDIT.

       (a) Extension.--Section 51(c)(4)(B) (relating to 
     termination) is amended by striking ``2007'' and inserting 
     ``2008''.
       (b) Increase in Maximum Age for Designated Community 
     Residents.--
       (1) In general.--Paragraph (5) of section 51(d) is amended 
     to read as follows:
       ``(5) Designated community residents.--
       ``(A) In general.--The term `designated community resident' 
     means any individual who is certified by the designated local 
     agency--
       ``(i) as having attained age 18 but not age 40 on the 
     hiring date, and
       ``(ii) as having his principal place of abode within an 
     empowerment zone, enterprise community, or renewal community.
       ``(B) Individual must continue to reside in zone or 
     community.--In the case of a designated community resident, 
     the term `qualified wages' shall not include wages paid or 
     incurred for services performed while the individual's 
     principal place of abode is outside an empowerment zone, 
     enterprise community, or renewal community.''.
       (2) Conforming amendment.--Subparagraph (D) of section 
     51(d)(1) is amended to read as follows:
       ``(D) a designated community resident,''.
       (c) Clarification of Treatment of Individuals Under 
     Individual Work Plans.--Subparagraph (B) of section 51(d)(6) 
     (relating to vocational rehabilitation referral) is amended 
     by striking ``or'' at the end of clause (i), by striking the 
     period at the end of clause (ii) and inserting ``, or'', and 
     by adding at the end the following new clause:
       ``(iii) an individual work plan developed and implemented 
     by an employment network pursuant to subsection (g) of 
     section 1148 of the Social Security Act with respect to which 
     the requirements of such subsection are met.''.
       (d) Treatment of Disabled Veterans Under the Work 
     Opportunity Tax Credit.--
       (1) Disabled veterans treated as members of targeted 
     group.--
       (A) In general.--Subparagraph (A) of section 51(d)(3) 
     (relating to qualified veteran) is amended by striking 
     ``agency as being a member of a family'' and all that follows 
     and inserting ``agency as--
       ``(i) being a member of a family receiving assistance under 
     a food stamp program under the Food Stamp Act of 1977 for at 
     least a 3-month period ending during the 12-month period 
     ending on the hiring date, or
       ``(ii) entitled to compensation for a service-connected 
     disability, and--

       ``(I) having a hiring date which is not more that 1 year 
     after having been discharged or released from active duty in 
     the Armed Forces of the United States, or
       ``(II) having aggregate periods of unemployment during the 
     1-year period ending on the hiring date which equal or exceed 
     6 months.''.

       (B) Definitions.--Paragraph (3) of section 51(d) is amended 
     by adding at the end the following new subparagraph:
       ``(C) Other definitions.--For purposes of subparagraph (A), 
     the terms `compensation' and `service-connected' have the 
     meanings given such terms under section 101 of title 38, 
     United States Code.''.
       (2) Increase in amount of wages taken into account for 
     disabled veterans.--Paragraph (3) of section 51(b) is 
     amended--
       (A) by inserting ``($12,000 per year in the case of any 
     individual who is a qualified veteran by reason of subsection 
     (d)(3)(A)(ii))'' before the period at the end, and
       (B) by striking ``Only first $6,000 of'' in the heading and 
     inserting ``Limitation on''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to individuals who begin work for the employer 
     after the date of the enactment of this Act.

     SEC. 3. EXTENSION AND INCREASE OF EXPENSING FOR SMALL 
                   BUSINESS.

       (a) Extension.--Subsections (b)(1), (b)(2), (b)(5), (c)(2), 
     and (d)(1)(A)(ii) of section 179 (relating to election to 
     expense certain depreciable business assets) are each amended 
     by striking ``2010'' and inserting ``2011''.
       (b) Increase in Limitations.--Subsection (b) of section 179 
     is amended--
       (1) by striking ``$100,000 in the case of taxable years 
     beginning after 2002'' in paragraph (1) and inserting 
     ``$125,000 in the case of taxable years beginning after 
     2006'', and
       (2) by striking ``$400,000 in the case of taxable years 
     beginning after 2002'' in paragraph (2) and inserting 
     ``$500,000 in the case of taxable years beginning after 
     2006''.
       (c) Inflation Adjustment.--Subparagraph (A) of section 
     179(b)(5) is amended--
       (1) by striking ``2003'' and inserting ``2007'',
       (2) by striking ``$100,000 and $400,000'' and inserting 
     ``$125,000 and $500,000'', and
       (3) by striking ``2002'' in clause (ii) and inserting 
     ``2006''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

     SEC. 4. DETERMINATION OF CREDIT FOR CERTAIN TAXES PAID WITH 
                   RESPECT TO EMPLOYEE CASH TIPS.

       (a) In General.--Subparagraph (B) of section 45B(b)(1) is 
     amended by inserting ``as in effect on January 1, 2007, and'' 
     before ``determined without regard to''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to tips received for services performed after 
     December 31, 2006.

     SEC. 5. WAIVER OF INDIVIDUAL AND CORPORATE ALTERNATIVE 
                   MINIMUM TAX LIMITS ON WORK OPPORTUNITY CREDIT 
                   AND CREDIT FOR TAXES PAID WITH RESPECT TO 
                   EMPLOYEE CASH TIPS.

       (a) Allowance Against Alternative Minimum Tax.--
     Subparagraph (B) of section 38(c)(4) is amended by striking 
     ``and'' at the end of clause (i), by inserting a comma at the 
     end of clause (ii), and by adding at the end the following 
     new clauses:
       ``(iii) the credit determined under section 45B, and
       ``(iv) the credit determined under section 51.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to credits determined under sections 45B and 51 
     of the Internal Revenue Code of 1986 in taxable years 
     beginning after December 31, 2006, and to carrybacks of such 
     credits.

     SEC. 6. FAMILY BUSINESS TAX SIMPLIFICATION.

       (a) In General.--Section 761 (defining terms for purposes 
     of partnerships) is amended by redesignating subsection (f) 
     as subsection (g) and by inserting after subsection (e) the 
     following new subsection:
       ``(f) Qualified Joint Venture.--
       ``(1) In general.--In the case of a qualified joint venture 
     conducted by a husband and wife who file a joint return for 
     the taxable year, for purposes of this title--
       ``(A) such joint venture shall not be treated as a 
     partnership,
       ``(B) all items of income, gain, loss, deduction, and 
     credit shall be divided between the spouses in accordance 
     with their respective interests in the venture, and
       ``(C) each spouse shall take into account such spouse's 
     respective share of such items as if they were attributable 
     to a trade or business conducted by such spouse as a sole 
     proprietor.
       ``(2) Qualified joint venture.--For purposes of paragraph 
     (1), the term `qualified joint venture' means any joint 
     venture involving the conduct of a trade or business if--
       ``(A) the only members of such joint venture are a husband 
     and wife,
       ``(B) both spouses materially participate (within the 
     meaning of section 469(h) without regard to paragraph (5) 
     thereof) in such trade or business, and
       ``(C) both spouses elect the application of this 
     subsection.''.
       (b) Net Earnings From Self-Employment.--
       (1) Subsection (a) of section 1402 (defining net earnings 
     from self-employment) is amended by striking ``, and'' at the 
     end of paragraph (15) and inserting a semicolon, by striking 
     the period at the end of paragraph (16) and inserting ``; 
     and'', and by inserting after paragraph (16) the following 
     new paragraph:
       ``(17) notwithstanding the preceding provisions of this 
     subsection, each spouse's share of income or loss from a 
     qualified joint venture shall be taken into account as 
     provided in section 761(f) in determining net earnings from 
     self-employment of such spouse.''.
       (2) Subsection (a) of section 211 of the Social Security 
     Act (defining net earnings from self-employment) is amended 
     by striking ``and'' at the end of paragraph (14), by striking 
     the period at the end of paragraph (15) and inserting ``; 
     and'', and by inserting after paragraph (15) the following 
     new paragraph:
       ``(16) Notwithstanding the preceding provisions of this 
     subsection, each spouse's share of income or loss from a 
     qualified joint venture shall be taken into account as 
     provided in section 761(f) of the Internal Revenue Code of 
     1986 in determining net earnings from self-employment of such 
     spouse.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

[[Page 4520]]



     SEC. 7. DENIAL OF LOWEST CAPITAL GAINS RATE FOR CERTAIN 
                   DEPENDENTS.

       (a) In General.--Subsection (h) of section 1 is amended by 
     adding at the end the following new paragraph:
       ``(12) Certain individuals not eligible for lowest rate.--
       ``(A) In general.--In the case of an individual described 
     in subparagraph (B)--
       ``(i) the amount determined under paragraph (1)(A)(ii)(II) 
     shall not be less than the amount of taxable income which 
     would (without regard to this subsection) be taxed at a rate 
     below 15 percent, and
       ``(ii) the sum of the amounts determined under 
     subparagraphs (B) and (C) of paragraph (1) shall be an amount 
     equal to the rate of tax specified in paragraph (1)(C) 
     multiplied by so much of the adjusted net capital gain (or, 
     if less, taxable income) as exceeds the excess (if any) of--

       ``(I) the amount of taxable income which would (without 
     regard to this subsection) be taxed at a rate below 15 
     percent, over
       ``(II) the taxable income reduced by the adjusted net 
     capital gain.

       ``(B) Individuals to whom paragraph applies.--
       ``(i) In general.--For purposes of this paragraph, an 
     individual is described in this subparagraph if--

       ``(I) such individual meets the age requirements of section 
     152(c)(3) (determined without regard to subparagraph (B) 
     thereof), and
       ``(II) such individual's earned income (as defined in 
     section 911(d)(2)) for the taxable year does not exceed one-
     half of such individual's support (within the meaning of 
     section 152) for such taxable year.

       ``(ii) Special rules for joint returns.--In the case of a 
     joint return--

       ``(I) the taxpayer and the taxpayer's spouse shall be 
     treated as a single individual for purposes of applying 
     subclause (II) of clause (i), and
       ``(II) the taxpayer shall be treated as an individual 
     described in this subparagraph only if the taxpayer and the 
     taxpayer's spouse are described in clause (i) (determined 
     after application of subclause (I)).''.

       (b) Alternative Minimum Tax.--Section 55 is amended by 
     adding at the end the following new subsection:
       ``(f) Certain Individuals Not Eligible for Lowest Rate.--In 
     the case of an individual described in section 1(h)(12)(B), 
     no amount shall be determined under subsection (b)(3)(B).''.
       (c) Coordination With Sunset of Provisions of the Jobs and 
     Growth Tax Relief Reconciliation Act of 2003.--Subparagraph 
     (A) of section 1(h)(12), as added by this section, is amended 
     by striking ``and'' at the end of clause (i), by striking the 
     period at the end of clause (ii) and inserting ``, and'', and 
     by adding at the end the following new clause:
       ``(iii) no amount of qualified 5-year gain shall be taken 
     into account under subparagraph (A) of paragraph (2) (as in 
     effect after the application of section 303 of the Jobs and 
     Growth Tax Relief Reconciliation Act of 2003).''.
       (d) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     beginning after December 31, 2006.
       (2) Sunset of jgtrra.--The amendment made by subsection (c) 
     shall apply to taxable years beginning after the date 
     specified in section 303 of the Jobs and Growth Tax Relief 
     Reconciliation Act of 2003.

     SEC. 8. SUSPENSION OF CERTAIN PENALTIES AND INTEREST.

       (a) In General.--Paragraphs (1)(A) and (3)(A) of section 
     6404(g) are each amended by striking ``18-month period'' and 
     inserting ``22-month period''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to notices provided by the Secretary of the 
     Treasury, or his delegate, after the date which is 6 months 
     after the date of the enactment of this Act.

     SEC. 9. 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 ``112.75 percent''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
York (Mr. Rangel) and the gentleman from Louisiana (Mr. McCrery) each 
will control 20 minutes.
  The Chair recognizes the gentleman from New York.
  Mr. RANGEL. Mr. Speaker, as our colleagues know, we passed 
overwhelmingly the minimum wage bill. But it got into trouble in the 
Senate as they attempted to attach an $8.2 billion tax cut.
  I shared the problem that we faced with Mr. McCrery, and we thought 
that small business certainly did deserve some assistance, with or 
without the minimum wage bill. And we talked, and Mr. McCrery said, 
well, if we are going to have a bill, are we going to pay for it? And 
let's select what we thought would be the best interests of small 
businesses in view of this dialogue that we had with the Senate.
  Our staffs got together, gave us several options, and we agreed that 
we would increase and extend the small business expense, increase the 
work opportunity tax credit to include veterans and disabled veterans, 
protect the current benefit of the FICA tip credit, allow small 
businesses to use the work opportunity tax credit, and to enjoy the 
alternative, to exclude alternative minimum tax, and to simplify the 
tax filing system for businesses that are owned jointly by husband and 
wife.
  We then tried to figure a way to pay for it. And what we agreed to is 
to make certain that the capital gains tax cut that was dramatically 
made lower for people in low income, that we would prevent people from 
transferring the capital stock to their kids who have little or no 
income and enjoy a benefit that was designed to assist low-income 
people.
  Letters commending our efforts were received, it was supported by the 
Chamber of Commerce which says that it is going to have a key vote; but 
since I don't follow them that closely, I don't know what it means; the 
National Association of Manufacturers, the National Restaurant 
Association, Equipment Leasing and Finance Association, American 
Bankers Association, the American Farm Bureau, Federation to Secure the 
Industry and Financial Markets Association, the National Federation of 
Independent Business, and the Work Opportunity Tax Credit Coalition.
  I urge you to join with me and the ranking minority member in 
supporting this legislation, which is supported as well by the Small 
Business Association.
  Mr. Speaker, I reserve the balance of my time.
  Mr. McCRERY. Mr. Speaker, I rise in support of this bipartisan bill 
that has been crafted in the Ways and Means Committee, and I want to 
commend the chairman and his staff for working with me and our staff on 
the minority side of the committee to craft a bill that really does 
effectively target tax relief to those businesses who will be most 
impacted by an increase in the minimum wage.
  This bill I think does a much better job of focusing that relief on 
those businesses than the other body came up with in their version of 
this legislation.
  It is apparent to me, Mr. Speaker, that the Congress will increase 
the minimum wage sometime this year. And with that in mind, I did my 
best to work with Chairman Rangel and his staff to create a soft 
landing for those businesses that are going to be impacted by that 
increase in the minimum wage immediately. Mainly, we are talking about 
restaurant owners, small businesses, those people who have more minimum 
wage workers on the premises than other businesses. So the provisions 
in this bill get right to those particular businesses, these provisions 
do.
  The tip credit, for example. The FICA tip credit, Mr. Speaker, 
provision in this bill is very important for a couple reasons. Number 
one, if we don't pass a provision like that and the minimum wage is 
increased, these employers will automatically be mandated to pay an 
increase in wages. That will be number one. That will hit them right 
away. But, number two, they will lose a tip credit for FICA taxes paid 
on the amount between the current minimum wage and the new minimum wage 
from $5.15 to $7.25. So it will be a double whammy on these small 
businesses that have these employees that depend on tips for part of 
their income.
  And that is why, Mr. Speaker, if you look at the joint tax scoring 
sheet on this, it says no revenue effect; because, taken in isolation, 
this provision has no impact. But if you join the minimum wage increase 
with this bill, which we all know is going to be done, then this ``no 
revenue effect'' becomes approximately a $500 million tax cut. So the 
effect of this bill would be a net tax reduction for businesses.
  Now, when we go to conference, if we get to conference and we get a 
bill, and we know that this impact is going to be there, then under the 
rules of the House we will have come up with a way to pay for that tax 
cut. But as it is right now, the net effect of this bill would be a 
$500 million tax cut.
  The other provisions, the work opportunity tax credit is not only 
extended but it is also expanded to apply

[[Page 4521]]

to veterans. We think that is a very good expansion of what is already 
a good provision in the Tax Code to encourage people to hire people who 
have been on welfare, who have been disabled, and now veterans.
  And the other provisions, Mr. Speaker, extended expensing for small 
businesses. We increase that to $125,000, we increase the phaseout from 
$400,000 to $500,000. That is going to help small businesses 
immediately, because some of those have reached the cap for their 
expensing. But when this passes, they will get an expansion of that 
amount. So they will get an immediate tax benefit this year.
  In addition, we for the first time allow taxpayers to claim these 
credits against the AMT, so that the AMT doesn't take back what we are 
giving them in this legislation.
  So all in all, Mr. Speaker, these are very effectively crafted 
provisions to help small businesses who are going to be negatively 
impacted by an increase in the minimum wage.
  Mr. Speaker, I reserve the balance of my time.
  Mr. RANGEL. Mr. Speaker, in view of the fact that so many Members 
have travel engagements, I will reserve the balance of my time.
  Mr. McCRERY. Mr. Speaker, I yield to the gentleman from California 
for a unanimous consent request.
  Mr. McKEON. Mr. Speaker, I rise in support of the H.R. 976, the Small 
Business Tax Relief Act.
  Last month, after the new Majority rushed an unbalanced minimum wage 
bill to the floor without following regular order and without 
opportunity for amendment, I spoke from here and explained to my 
colleagues that I believed it was a colossal missed opportunity. Now, 
about six weeks later, it's clear that a colossal missed opportunity is 
exactly what it was.
  From the outset, I joined many of my colleagues in insisting on 
protections for small businesses and their workers as part of a 
comprehensive minimum wage bill. I thank one of these colleagues, Mr. 
McCrery, for his work on the legislation before us. He joined me prior 
to our debate last month in introducing comprehensive minimum wage 
legislation that provides small business protections similar to those 
found in this bill. As a result of our action here today, when we 
finally send a final measure to the President, I am confident that it 
will look a lot more like our bill than it will the Majority's initial, 
unbalanced proposal.
  Small businesses create two-thirds of our Nation's new jobs, and they 
represent 98 percent of our new businesses. Since they are responsible 
for so much of our Nation's recent economic growth. they and their 
workers are counting on Congress to consider how any minimum wage 
proposal would impact them. And this legislation will help us do just 
that.
  More than ever, Mr. Speaker, momentum remains squarely on the side of 
those who want to act in a comprehensive way so small businesses and 
their workers are not left to fend for themselves in the face of a hike 
in the minimum wage mandate. And today, we're one step closer to 
sending President Bush a final product that doesn't saddle them with 
unnecessary burdens at the same time that they are creating most of the 
new jobs in our in our growing economy. This bill was crafted with that 
goal in mind, and because of that, I urge my colleagues to join me in 
support of it.

                              {time}  1645

  Mr. McCRERY. Mr. Speaker, I yield to the gentleman from Wisconsin, a 
member of the Ways and Means Committee, for as much time as he may 
consume.
  Mr. RYAN of Wisconsin. Mr. Speaker, this was the product of a 
bipartisan compromise in the Ways and Means Committee. That is a good 
thing. I am not here to talk about the merits of the bill.
  I am here to talk about the fact that this is a suspension of the 
rules. Among the things that this rules suspends is the Budget Act, and 
this bill has two budget points of order that lie against it, section 
303 and 311. So we are, in the early days of this majority, bringing a 
bill to the floor that violates the Budget Act. We haven't written the 
new budget, and we are violating the current one we have.
  As to the new PAYGO system, if the PAYGO rule were in place that we 
had before, or the PAYGO rule that was advocated by the Democrat 
minority last year would be in place, this would violate their PAYGO 
rule. It is convenient that this new, more-watered-down PAYGO doesn't 
apply to this, but I think the facts should be known that this bill 
does violate the Budget Act in two important ways.
  Mr. McCRERY. Mr. Speaker, I recognize the gentleman from New Jersey 
(Mr. Garrett) for as much time as he may consume.
  Mr. GARRETT of New Jersey. Thank you, and I shall be brief.
  Mr. Speaker, as I sit here and read the bill, I consider it a riddle: 
When is a tax cut not a tax cut? When it really raises your taxes in 
the end?
  This legislation, as many tax bills, is masquerading as a tax cut, 
when at the end of the day citizens of this country will see their 
taxes rise.
  The tax cuts in this bill are temporary. The tax increases in this 
bill are permanent. There are good parts in the bill. Section 179, 
expensing, is a good part; the tip credit, which was mentioned earlier, 
a good part.
  Portions were left out, as we discussed during the rule, such as 
deductions for State and local tax deductions should have been in here. 
But even beyond that, even if they were, it is a bad bill, because it 
raises your taxes. Business lobby may be out there protecting the tax 
businesses, who is protecting the individual taxpayer?
  Earlier today, we received a flier from NTU, National Taxpayer Union, 
which said, according to the CBO, H.R. 976 would increase net taxes by 
providing only temporary tax cuts in exchange for permanent tax hikes.
  Furthermore, a memo from RSE indicates similarly. H.R. 976 would 
permanently increase taxes on some taxpayers, while others would see 
them go down.
  This bill was also scored by the Joint Committee on Taxation. So it 
is not just my word on it. It is not the word of NTU or RSE. The Joint 
Committee on Taxation also concludes this bill would yield a net tax 
increase over 6 years.
  How does this bill hurt the American taxpayer? It hurts the young, 
and it hurts the small business. It hurts the young who are between the 
age of 19 and 24, those individuals who are just getting out in the 
world, starting their own businesses. It hurts the young and the 
college student, who may not have lobbyists down here in Washington. It 
hurts them. Small businesses, it hurts them as well because they now 
have an acceleration in their taxes.
  In conclusion, so you can get your flights and what have you to go 
back to your taxpayers and explain to them why you raised their taxes, 
since 2003, the gentleman, the ranking member, could probably explain 
better than I, the tax cuts we have put in place have spurred on the 
economy, have spurred on the revenue.
  Since October of last year to this year, you have seen a 9.7 percent 
increase in revenue because of true tax cuts. What America's taxpayers 
need is permanent tax cuts. We do not need permanent tax increases, 
which this bill will provide.
  I encourage a ``no'' vote on the tax increase bill.
  Mr. McCRERY. Mr. Speaker, the FICA tip credit provision in this bill 
is permanent. It is not temporary. It is extremely important, as I 
explained before, to restaurant owners and the like. So that is one 
provision, a very important provision, that is made permanent in this 
legislation. It is not temporary.
  Mr. COSTELLO. Mr. Speaker, I rise today in strong support of H.R. 
976, the Small Business Tax Credit Act of 2007. This tax relief will 
help small businesses continue to grow and hire new workers to improve 
our economy. I firmly believe small businesses are the backbone of our 
economy and tax incentives are an important tool in helping maintain a 
competitive edge in today's business world. By passing this 
legislation, we are one step closer to implementation of a higher 
minimum wage.
  H.R. 976 would help small businesses invest in new equipment and more 
easily afford large capital expenses. It extends small business 
expensing for one year--increasing both the amount small businesses can 
deduct from their taxes and the number of small businesses that can 
take these deductions. Qualified property includes farm machinery 
equipment and attached farm property, such as automatic feeders, barn 
cleaners, single purpose agricultural structures and livestock, to

[[Page 4522]]

name just a few. The ability to deduct expenses immediately instead of 
having to depreciate them over time improves cash flow and allows small 
businesses and farmers to better match income and expenses.
  In addition, the bill would simplify tax filing requirements for 
businesses owned jointly by husbands and wives, and ensure that small 
businesses are fully able to claim the Work Opportunity Tax Credit and 
tip credit against AMT liability.
  Again, passing this legislation is critically important to getting 
the increase in the minimum wage enacted into law. Raising the minimum 
wage from $5.15 to $7.25 an hour over two years would benefit 13 
million Americans including 7.7 million women and 3.4 million parents. 
Mr. Speaker, for these reasons I support this legislation and urge my 
colleagues to do the same.
  Mr. CROWLEY. Mr. Speaker, I rise in strong support of H.R. 976.
  This is a smart bill that is good for workers and their employers.
  Representing Queens and the Bronx, I serve a large number of people 
who work full time jobs for the minimum wage, and they deserve a raise.
  But their employers, like the small restaurants that dot 74th Street 
in Jackson Heights should not be hit with a new tax.
  This bill will allow congress to start in motion the process of 
increasing the minimum wage, while protecting important employer tax 
benefits like enhancing the tip credit and expanding and increasing 
expensing deductions.
  This bill also extends and expands the Work Opportunity Tax Credit to 
encourage businesses to hire people who were formerly on welfare.
  Today, we are showing the American people that the Congress works.
  This bill is good for workers and business and I urge everyone to 
support it.
  Mr. CARDOZA. Mr. Speaker, I rise today in strong support of this rule 
and the underlying bill, H.R. 976, The Small Business Tax Relief Act of 
2007.
  This bill provides $1.3 billion in tax breaks for small business 
owners and is one of the final steps toward raising the federal minimum 
wage from $5.15 per hour to $7.25 per hour.
  It has been 9\1/2\ years since the last minimum wage increase despite 
widespread support across the country and within the U.S. Congress. And 
why? Because of partisan politics, and special interests coming before 
the people's interests.
  The Democratic Congress promised a change in priorities. And as one 
of our first measures of business, Democrats brought a minimum wage 
increase to the House floor, which received overwhelming bipartisan 
support. The other body has followed suit and we must work to resolve 
our differences, which is why we bring this bill before the House 
today.
  A recent poll showed that 89 percent of Americans favor raising the 
minimum wage. The American public deserves--and has demanded--that 
raise. With our immediate consideration of this bill, we will heed that 
call. Hard-working Americans have waited far too long to receive an 
honest day's pay for an honest day's work.
  The people's time has come. We have pledged to act in the public's 
best interests and we must do so without further delay. Passage of this 
rule and H.R. 976 will speed enactment of the long overdue increase in 
the minimum wage.
  The Democratic Congress also pledged to reach across the aisle in a 
bipartisan manner and address the priorities of all Americans. Our 
bipartisan effort resulted in the carefully constructed compromise that 
we have before us today. This bill isn't about partisan politics, it's 
just good policy.
  H.R. 976 will help give hard-working families the pay increase they 
so richly deserve, and ensure small business owners have every 
opportunity to succeed and prosper. And it will do so in a fiscally 
responsible manner that will avoid adding to the legacy of debt being 
left to our children and grandchildren.
  Simply stated, this bill is good for taxpayers, good for business, 
good for people, and is just good policy.
  Ms. SCHWARTZ. Mr. Speaker, I want to thank Chairman Rangel and 
Ranking Member McCrery for proving that the Ways and Means Committee 
can work in a bipartisan way to extend needed relief to our nation's 
small businesses.
  I am particularly pleased that this bill--the first to be acted upon 
by the committee since I became a member--includes a provision that 
closely mirrors the Veterans Employment and Respect Act, which was the 
first legislative proposal I introduced upon being elected to Congress 
in 2005.
  Section 2 of the bill before us today extends the Work Opportunity 
Tax Credit to include veterans who have developed a service-related 
disability and who have been discharged or released since September 11, 
2001.
  Our military service men and women deserve our utmost respect during 
their active service, and our support and assistance during the 
sometimes difficult transition back into civilian life. One key 
component of a successful transition is the opportunity to gain 
meaningful employment in the private sector. Incentives designed to 
encourage employers to hire some of the newest veterans--many of whom 
are returning from Iraq and Afghanistan--will better enable these men 
and women to make a smooth return to civilian life.
  I offer my appreciation to the Chairman and Ranking Member for 
including this important provision and for making additional changes to 
the Work Opportunity Tax Credit that will ensure more businesses are 
able to take advantage of it. This will positively impact the lives of 
our disabled veterans and citizens seeking gainful employment after a 
period of unemployment, welfare assistance, or disability.
  Mr. UDALL of Colorado. Mr. Speaker, I support this legislation, which 
includes an array of tax cuts and other provisions that will help the 
small businesses that provide jobs for Americans in all sectors of the 
economy.
  The bill will make it easier for small businesses to invest in new 
equipment by extending their ability to count such investments as a 
business expense, increasing from $112,000 to $125,000 the amount that 
can be deducted from their taxes and expanding the number of small 
businesses that can take these deductions.
  In addition, the bill extends the Work Opportunity Tax Credit, WOTC--
which provides incentives for hiring--and expands it to cover disabled 
veterans.
  It also will enhance the current tip credit for small businesses, by 
maintaining the current tip credit that small businesses take for the 
Social Security taxes that they pay on their employees' tips, instead 
of allowing it to drop with the increase in the minimum wage. This is 
particularly important for many restaurants in Colorado and across the 
country.
  And it will simplify tax-filing requirements for businesses owned 
jointly by married couples and ensure that small businesses are fully 
able to claim the WOTC and tip credit against Alternative Minimum Tax 
liability.
  Mr. Speaker, I think this bill is an excellent example of the good 
results that can be achieved when we work together on a bipartisan 
basis. It has the support of the Administration and has also been 
endorsed by the national Chamber of Commerce, the National Association 
of Manufacturers, the National Federation of Independent Businesses, 
the National Restaurant Association.
  I have also received a letter of support from the American Farm 
Bureau Federation--which I will insert in the Record--noting that 
passage of the bill will directly benefit many farm and ranch 
businesses. This means it is particularly important for our rural 
communities in Colorado.
  This is a good bill, and I think it deserves the approval of the 
House.

                                                February 15, 2007.
     Hon. Mark Udall,
     House of Representatives,
     Washington, DC.
       Dear Representative Udall: The American Farm Bureau 
     Federation supports passage of H.R. 976, the Small Business 
     Tax Relief Act of 2007.
       H.R. 976 extends the enhanced provisions of section 179 
     small business expensing for one year. Beginning in 2007, it 
     increases the maximum amount that can be expensed from 
     $112,000 to $125,000 and the total dollar limit from $450,000 
     to $500,000.
       Section 179 allows small businesses to expense the cost of 
     qualified property in the year that it is purchased in lieu 
     of depreciation. Qualified property includes farm machinery 
     equipment and attached farm property, such as milk tanks, 
     automatic feeders, barn cleaners, single purpose agricultural 
     structures and livestock.
       The ability to deduct expenses immediately instead of 
     having to depreciate them over time improve cash flow and 
     allows farm and ranch businesses to better match income and 
     expenses. Extending and expanding small business expensing 
     will offer additional benefits to farm and ranch businesses.
       Farm Bureau urges you to vote for passage of H.R. 976, the 
     Small Business Tax Relief Act of 2007.
           Sincerely,
                                                     Bob Stallman,
                                                        President.

  Mr. LEVIN. Mr. Speaker, I rise in support of H.R. 976, the Small 
Business Tax Relief Act.
  This tax package provides limited, targeted tax relief for small 
businesses in a fiscally responsible manner. At a little over $1.3 
billion it provides a meaningful level of relief, offset by closing a 
loophole that would allow some upper income tax payers to take 
advantage of a reduced capital gains tax that was intended to benefit 
low income Americans.

[[Page 4523]]

  In addition to being fiscally responsible, it's fully bipartisan. 
Both Democratic and Republican Members had a chance to provide their 
input. It was introduced jointly by Chairman Rangel and Mr. McCrery, 
and it has been co-sponsored by an overwhelming bipartisan majority of 
the Ways and Means Committee.
  I am particularly supportive of extending the Work Opportunity Tax 
Credit, and expanding the Credit to include veterans who have been 
disabled since September 11th, which this bill does.
  But mostly, I am supportive of going to conference with the other 
body to pass a minimum wage increase. This legislation will accomplish 
that. Thirteen million Americans have not had a raise--not even a cost 
of living adjustment--in 9 years. In a word, a minimum wage increase is 
overdue.
  The current minimum wage is so low that an individual working full 
time at the minimum wage would make only $10,712--that's 35% below the 
federal poverty line for a family of three. I urge all of my colleagues 
to support this responsible tax package so we can move onto conference 
and providing millions of Americans with the raise they deserve.
  Mr. KIND. Mr. Speaker, I rise today in support of H.R. 976, the Small 
Business Tax Relief Act of 2007. This bill creates immediate 
opportunities for small businesses around the country and in western 
Wisconsin. Small businesses are the engine of America's economy, 
representing more than 95 percent of all employers, creating half of 
our gross domestic product, and creating three out of four new jobs 
nationwide. If the United States is going to continue to have a strong 
economy, we must give small businesses every opportunity to succeed; 
H.R. 976 provides the right tax opportunities for positive growth for 
small businesses.
  Additionally, I would like to thank Chairman Rangel and Ranking 
Member McCrery for presenting a bipartisan bill to the Committee on 
Ways and Means and to the House of Representatives. With their combined 
leadership, I know my first term on the Committee on Ways and Means 
will be eventful and successful.
  Since coming to Congress, I have consistently supported a range of 
proposals to help small firms, including giving help to small 
manufacturers through tax relief and the Manufacturing Extension 
Partnership; creating a new small business health care tax credit; and 
putting the government on a ``pay as you go'' basis to restrain deficit 
spending that raises interest rates and restricts small firms' access 
to capital.
  H.R. 976 follows this tradition by providing $1.3 billion in tax cuts 
targeted to small business over the next 10 years. This cost, however, 
is entirely offset by provisions that pay for it. The bill's tax cuts 
include a one-year extension for deductions on small business expenses, 
and it increases the amount of such expenses these businesses could 
deduct. It also extends for one year the tax credit for employers who 
hire certain disadvantaged workers, and ensures that an increase in the 
minimum wage would not reduce the current ``tip credit'' for restaurant 
employers. Most importantly, this bill accomplishes these savings for 
small businesses within the framework of pay-as-you-go rules.
  Most significantly, H.R. 976 includes a provision to help simplify 
taxes for family farmers. Right now, if a farm owned by a married 
couple files as a sole proprietorship (instead of a partnership), only 
one spouse receives credit for paying Social Security and Medicare 
taxes. This bill allows both spouses to receive credit for the Social 
Security and Medicare taxes they pay while under a sole proprietorship. 
Filing for a partnership can be a costly and time consuming process, 
and this bill allows both spouses the security that comes with Social 
Security and Medicare benefits, without the extra burden.
  Specifically, I know this provision will greatly benefit family 
farmers in western Wisconsin and around the country. This 
simplification will allow both spouses running a farm to receive credit 
for the taxes they pay, and ensures that in the event of a tragedy, or 
simply in old age, both of them are taken care of.
  Small business is critical to economic strength, building America's 
future, and helping the United States compete in today's global 
marketplace. I urge my colleagues to vote for this common sense bill so 
we can support our most important economic driver, the small business.
  Mr. LEWIS of Georgia. Mr. Speaker, I rise today in support of the 
Small Business Tax Relief Act of 2007. I commend my colleagues on the 
Ways and Means Committee for working in a bipartisan way to reach an 
agreement on provisions that will not only help small businesses grow 
and thrive, but will provide small businesses with incentives to hire 
disadvantaged workers. Not only that, it will not pass any costs onto 
our children.
  The most important thing that will come out of passing this piece of 
legislation today, is that it will ensure that we finally pass a 
minimum wage increase. As I have said before, we have waited far too 
long--10 long years--to give our working poor a pay raise. We should be 
ashamed of that delay, but I am proud that we are taking that important 
step to restoring dignity and fairness for our minimum wage earners. 
This minimum wage increase will help millions of our brothers and 
sisters, mothers and fathers.
  My fight in Congress is the fight against poverty. We must do more 
for working families, for families who are playing by the rules and 
still cannot get ahead. I just don't understand how people survive 
under these circumstances. We cannot stand by and watch millions of 
people continue to fall into poverty. This minimum wage increase is not 
the end, but the beginning of our fight against poverty in this nation.
  Passing this legislation today will smooth the path to the passage of 
the minimum wage increase. This bill is also a symbol of how much we 
can accomplish to help hard working families when we work together, 
across the aisle--Democrats and Republicans. And I look forward to 
continued progress in the fight against poverty in the 110th Congress.
  Mr. BERKLEY. Mr. Speaker, I rise in strong support of the Small 
Business Tax Relief Act.
  Small businesses are the backbone of our nation's economy, and I am 
pleased that today we are considering a few common-sense provisions 
that will lessen the tax burden our small businesses face.
  I am especially supportive of the language that will have a direct 
impact on the restaurants in my district. The bill will allow 
restaurants in Las Vegas and across the country to continue claiming 
the full tip credit despite any increase in the federal minimum wage.
  I strongly support increasing the minimum wage and was proud to vote 
in favor of legislation this House passed as part of the Democratic 
majority's first 100 hours. I am hopeful that passing this bill will 
help move the process along in order to achieve this important goal.
  Mr. CARDOZA. Mr. Speaker, I rise today in strong support of this rule 
and the underlying bill H.R. 976, The Small Business Tax Relief Act of 
2007.
  This bill provides $1.3 billion in tax breaks for small business 
owners and is one of the final steps toward raising the federal minimum 
wage from $5.15 per hour to $7.25 per hour. It has been 9\1/2\ years 
since the last minimum wage increase despite widespread support across 
the country and within the U.S. Congress. And why? Because of partisan 
politics and special interests coming before the people's interests.
  The Democratic Congress promised a change in priorities. And as one 
of our first measures of business, Democrats brought a minimum wage 
increase to the House floor, which received overwhelming bipartisan 
support. The other body has followed suit and we must work to resolve 
our differences, which is why we bring this bill before the House 
today.
  A recent poll showed that 89 percent of Americans favor raising the 
minimum wage. The American public deserves--and has demanded--that 
raise. With our immediate consideration of this bill, we will heed that 
call. Hard-working Americans have waited far too long to receive an 
honest day's pay for an honest day's work.
  The people's time has come. We have pledged to act in the public's 
best interests and we must do so without further delay. Passage of this 
rule and H.R. 976 will speed enactment of the long overdue increase in 
the minimum wage.
  The Democratic Congress also pledged to reach across the aisle in a 
bipartisan manner and address the priorities of all Americans. Our 
bipartisan effort resulted in the carefully constructed compromise that 
we have before us today. This bill isn't about partisan politics, it's 
just good policy.
  H.R. 976 will help give hard-working families the pay increase they 
so richly deserve, and ensure small business owners have every 
opportunity to succeed and prosper. And it will do so in a fiscally 
responsible manner that will avoid adding to the legacy of debt being 
left to our children and grandchildren.
  Simply stated, this bill is good for taxpayers, good for business, 
good for people, and is just good policy.
  Mr. TANNER. Mr. Speaker, I rise today in strong support of H.R. 976, 
the Small Business Tax Relief Act of 2007. My family has owned small 
businesses in Tennessee for generations, and I understand the unique 
challenges these family-operated businesses face in remaining 
successful and meeting the needs of their communities. We also 
understand their importance in helping fuel the local

[[Page 4524]]

and national economies. I am proud of the work we are doing here to 
support small businesses as they continue to thrive and give them the 
assistance they need to help raise their workers' wages.
  It is fitting that this is the first major tax package to adhere to 
the new PAYGO rules this House has re-implemented to curb deficit 
spending, because ``pay as you go'' is a basic principle that every 
small business owner we are helping here today already follows every 
day. I am glad that we are following their lead and operating under 
responsible business values such as PAYGO.
  Finally, Mr. Speaker, I want to thank Chairman Rangel and Ranking 
Member McCrery for the way they have worked together on this bill. I 
have been a part of the Ways and Means Committee for 10 years, and this 
is the first major tax bill I know of during that time that has been 
reported out of our committee by a unanimous, bipartisan vote. I am 
encouraged by that and hope the bipartisanship will continue as we look 
forward to the other legislative priorities facing us on the Committee.
  Mr. DOGGETT. Mr. Speaker, surely the smaller and less complex your 
business structure, the less complex your tax filings should be. But 
the tax code is so full of complexity that there is barely any room 
left for simplicity for even the truly Mom- and Pop-owned business or 
the couple who is trying to hold on to the family farm or ranch.
  I am particularly pleased that this bill includes a provision to help 
husband and wife co-owned businesses that was taken from a bill that I 
co-introduced with the now Small Business Committee Chairwoman in the 
last Congress and reintroduced this Congress. My simplification 
provision has repeatedly been included in the Taxpayer Advocate's 
annual recommendations to Congress. Now it will hopefully become a 
reality. An additional benefit of this provision is to ensure equity 
for wives in these situations by giving both the husband and the wife 
credit for paying Medicare and Social Security taxes.
  I also support the extension and increase of small business 
expensing, which allows small businesses to make significant capital 
investments--such as acquiring computer software or farm equipment--and 
deduct the total cost from income immediately, rather than depreciating 
them over extended periods of time. By reflecting the increasing costs 
of doing business, this provision will allow small business owners to 
build upon their all-American dreams.
  As a result of this bill, many of the small Mom- and Pop-owned farms, 
ranches, and businesses that I represent in Texas will find tax season 
a little less taxing and a lot fairer. The Committee has shown 
restraint in drafting this bill. With the purchasing power of the 
minimum wage at its lowest level in 50 years, neither it nor these 
modest reforms to help small businesses should be held hostage to the 
endless appetite of some for another $8 billion plus in additional tax 
breaks.
  Ms. SCHWARTZ. Mr. Speaker, I want to thank Chairman Rangel and 
Ranking Member McCrery for proving that the Ways and Means Committee 
can work in a bipartisan way to extend needed relief to our Nation's 
small businesses.
  I am particularly pleased that this bill--the first to be acted upon 
by the committee since I became a member--includes a provision that 
closely mirrors the Veterans Employment and Respect Act. which was the 
first legislative proposal I introduced upon being elected to Congress 
in 2005.
  Section 2 of the bill before us today extends the Work Opportunity 
Tax Credit to include veterans who have developed a service-related 
disability and who have been discharged or released since September 11, 
2001.
  Our military service men and women deserve our utmost respect during 
their active service, and our support and assistance during the 
sometimes difficult transition back into civilian life. One key 
component of a successful transition is the opportunity to gain 
meaningful employment in the private sector. Incentives designed to 
encourage employers to hire some of the newest veterans--many of whom 
are returning from Iraq and Afghanistan--will better enable these men 
and women to make a smooth return to civilian life.
  I offer my appreciation to the Chairman and Ranking Member for 
including this important provision and for making additional changes to 
the Work Opportunity Tax Credit that will ensure more businesses are 
able to take advantage of it and, as a result, positively impact the 
lives of our disabled veterans and citizens seeking gainful employment 
after a period of unemployment, welfare assistance, or disability.
  Mr. NEAL of Massachusetts. Mr. Speaker, I think we've done a good job 
of balancing small business tax incentives with an increase in the 
minimum wage.
  Both workers and employers come out winners. And because the bill is 
revenue neutral, the taxpayer also wins.
  The bill provides a few billion dollars of tax relief in the first 
few years while businesses are absorbing the minimum wage increase.
  These tax benefits include a 1-year extension of the WOTC, Work 
Opportunity Tax Credit, which is a credit for employers who hire the 
hard-to-employ.
  Eligible workers include those from low-income communities, or those 
on public assistance, or veterans who simply need a boost in getting 
back into the workforce.
  Our bipartisan bill also doubles the WOTC credit for hiring veterans 
with service-connected disabilities.
  The bill also increases and extends the small business expensing 
allowance so that small business owners can write-off capital 
expenditures.
  A small business owner buying equipment or new computers can 
immediately recoup the cost, rather than depreciating the asset over 
several years.
  And the bill allows businesses to continue to take a full ``tip 
credit'' for their tipped workers. Otherwise, with the increase in the 
minimum wage, these business owners would lose a significant amount of 
the tip credit right away.
  I applaud the work of Chairman Rangel and Mr. McCrery who drafted 
this bipartisan bill. I urge my colleagues to support the bill.
  Mrs. JONES of Ohio. Mr. Speaker, I stand in strong support of H.R. 
976, which will provide tax relief to small businesses, the backbone of 
our economy.
  It is my hope that this revenue-neutral tax bill will be coupled with 
the $7.25 minimum wage increase this House of Representatives passed in 
its First 100 hours. We owe it to hard-working Americans to give them a 
living wage, as well as provide tax relief to small businesses that 
would allow them to continue to grow and play a vital role in our local 
economies across the country.
  In my hometown of Cleveland, OH, over 95 percent of the businesses 
are considered small businesses, employing about 58,000 Clevelanders. 
In the State of Ohio, over 490,000 people are employed by small 
businesses. These workers and businesses will benefit from the tax 
benefits in this bill, allowing them to thrive and reinvest in our 
communities.
  Let me praise two key provisions in this bill. H.R. 976:
  1. Extends and expands the Work Opportunity Tax Credit. The WOTC 
provides employers with a tax credit for employing ex-offenders, 
qualified veterans, TANF recipients, high-risk youth, food stamp 
recipients, and other targeted groups. The credit helps break down many 
of the barriers preventing these Americans from getting work. H.R. 976 
extends the WOTC, and expands the credit for the benefit of disabled 
veterans and residents living in empowerment zones, enterprise 
communities, and renewal communities.
  2. Extends the Section 179 small business expensing, and increases 
from $112,000 to $125,000 (indexed for inflation) the total amount of 
expensing allowed. The bill also expands the number of small businesses 
that can qualify for the maximum benefit by increasing the phaseout 
threshold amount from $450,000 to $500,000.
  Let me also discuss another important provision in this tax bill, and 
that is the enhancement of the tip credit. I was recently approached 
about this issue by a chef and restaurant owner in my Congressional 
District, Sergio Abramof. Sergio owns two excellent restaurants: 
Sergio's in University Circle, and Sergio's Sarava at Shaker Square.
  Fortunately, H.R. 976 will allow businesses to continue claiming the 
full tip credit despite an increase in the Federal minimum wage. That 
provision will assist workers and restaurants like those owned by 
Sergio, so I am very pleased that we are including it in this 
legislation.
  H.R. 976 is fair, bipartisan legislation that will allow small 
businesses to continue to be an economic engine. I urge my colleagues 
to vote ``yes.''
  Mr. PEARCE. Mr. Speaker, today the Democratic leadership has brought 
to the House floor legislation that will effectively create permanent 
tax increases on many American taxpayers in order to create temporary 
tax relief for a few.
  Though this legislation does not mention a minimum wage increase, we 
all know this bill is intended to be paired with Senate legislation 
including a wage hike. While I am pleased that the Majority has finally 
listened to the Republicans and recognized the detrimental impact a 
minimum wage increase would have on small businesses, this legislation 
is nothing but an example of the Majority's plans to deceptively 
increase taxes on Americans.

[[Page 4525]]

  In the last Congress I voted for a balanced minimum wage bill that 
increased the wage rate from $5.15 to $7.25/hour over three years and 
included important tax and regulatory protections for small businesses 
and their workers, ensuring they are not over-burdened by high labor 
costs and can stay in business.
  However, I believe it is unfair to create permanent tax increases for 
the sake of temporary tax relief. This is a perfect example, and I 
predict many more are to come, of the Democrats using covert tax 
increase maneuvers to adhere to their misguided PAYGO rules.
  The Majority has forced this legislation to the House floor under the 
suspension of the rules, cutting off debate time and forbidding any 
amendments to the legislation.
  Mr. Speaker, I can not in good conscience support this bill because 
of the misleading, permanent tax increases it places on many Americans.
  Mr. McCRERY. Mr. Speaker, I yield back the balance of my time.
  Mr. RANGEL. 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. 976, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.


                             Recorded Vote

  Mr. RANGEL. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 360, 
noes 45, not voting 28, as follows:

                             [Roll No. 102]

                               AYES--360

     Abercrombie
     Ackerman
     Aderholt
     Alexander
     Allen
     Altmire
     Andrews
     Arcuri
     Baca
     Bachus
     Baker
     Baldwin
     Barrow
     Barton (TX)
     Bean
     Becerra
     Berkley
     Berry
     Biggert
     Bilbray
     Bilirakis
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Blunt
     Boehner
     Bonner
     Bono
     Boozman
     Boren
     Boswell
     Boucher
     Boyd (FL)
     Boyda (KS)
     Brady (PA)
     Brady (TX)
     Braley (IA)
     Brown (SC)
     Brown, Corrine
     Brown-Waite, Ginny
     Buchanan
     Burton (IN)
     Butterfield
     Camp (MI)
     Cantor
     Capito
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson
     Carter
     Castle
     Castor
     Chabot
     Chandler
     Clarke
     Clay
     Cleaver
     Clyburn
     Coble
     Cohen
     Cole (OK)
     Conyers
     Cooper
     Costa
     Courtney
     Cramer
     Crenshaw
     Crowley
     Cubin
     Cuellar
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis (KY)
     Davis, David
     Davis, Lincoln
     Davis, Tom
     DeGette
     Delahunt
     DeLauro
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Dingell
     Doggett
     Donnelly
     Doolittle
     Doyle
     Drake
     Dreier
     Duncan
     Edwards
     Ehlers
     Ellison
     Ellsworth
     Emanuel
     Emerson
     Engel
     English (PA)
     Eshoo
     Etheridge
     Fallin
     Farr
     Fattah
     Ferguson
     Filner
     Forbes
     Fortenberry
     Frank (MA)
     Frelinghuysen
     Gerlach
     Giffords
     Gilchrest
     Gillibrand
     Gillmor
     Gohmert
     Gonzalez
     Goode
     Goodlatte
     Gordon
     Granger
     Graves
     Green, Al
     Grijalva
     Hall (NY)
     Hall (TX)
     Hare
     Hastings (FL)
     Hastings (WA)
     Hayes
     Heller
     Herger
     Herseth
     Higgins
     Hill
     Hinchey
     Hinojosa
     Hirono
     Hobson
     Hodes
     Holden
     Holt
     Honda
     Hooley
     Hoyer
     Hunter
     Inglis (SC)
     Inslee
     Israel
     Issa
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Jindal
     Johnson (GA)
     Johnson (IL)
     Johnson, E. B.
     Johnson, Sam
     Jones (NC)
     Jones (OH)
     Kagen
     Kanjorski
     Kaptur
     Keller
     Kennedy
     Kildee
     Kilpatrick
     Kind
     King (NY)
     Kirk
     Klein (FL)
     Kline (MN)
     Knollenberg
     Kucinich
     Kuhl (NY)
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     LaTourette
     Lee
     Levin
     Lewis (CA)
     Lewis (GA)
     Lewis (KY)
     Linder
     Lipinski
     Loebsack
     Lofgren, Zoe
     Lucas
     Lungren, Daniel E.
     Lynch
     Mahoney (FL)
     Maloney (NY)
     Manzullo
     Marchant
     Markey
     Marshall
     Matheson
     Matsui
     McCarthy (CA)
     McCarthy (NY)
     McCaul (TX)
     McCollum (MN)
     McCrery
     McDermott
     McGovern
     McHugh
     McIntyre
     McKeon
     McMorris Rodgers
     McNerney
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Melancon
     Mica
     Michaud
     Millender-McDonald
     Miller (MI)
     Miller, George
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (KS)
     Moran (VA)
     Murphy (CT)
     Murphy, Patrick
     Murphy, Tim
     Murtha
     Myrick
     Napolitano
     Neal (MA)
     Nunes
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor
     Paul
     Payne
     Perlmutter
     Peterson (MN)
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Platts
     Pomeroy
     Porter
     Price (NC)
     Pryce (OH)
     Putnam
     Rahall
     Ramstad
     Rangel
     Regula
     Rehberg
     Reichert
     Renzi
     Reyes
     Reynolds
     Rodriguez
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Roskam
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Ryan (WI)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Saxton
     Schakowsky
     Schiff
     Schmidt
     Schwartz
     Scott (GA)
     Scott (VA)
     Sensenbrenner
     Serrano
     Sessions
     Sestak
     Shays
     Shea-Porter
     Sherman
     Shimkus
     Shuler
     Shuster
     Simpson
     Sires
     Skelton
     Slaughter
     Smith (NE)
     Smith (NJ)
     Smith (WA)
     Snyder
     Solis
     Souder
     Space
     Spratt
     Stearns
     Stupak
     Sutton
     Tanner
     Tauscher
     Taylor
     Terry
     Thompson (CA)
     Thompson (MS)
     Tiahrt
     Tiberi
     Tierney
     Towns
     Turner
     Udall (CO)
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Walberg
     Walden (OR)
     Walsh (NY)
     Walz (MN)
     Wasserman Schultz
     Watson
     Watt
     Waxman
     Weiner
     Welch (VT)
     Weller
     Wexler
     Whitfield
     Wilson (NM)
     Wilson (OH)
     Wolf
     Woolsey
     Wu
     Wynn
     Yarmuth
     Young (AK)
     Young (FL)

                                NOES--45

     Akin
     Bachmann
     Barrett (SC)
     Bartlett (MD)
     Bishop (UT)
     Blackburn
     Burgess
     Buyer
     Campbell (CA)
     Cannon
     Conaway
     Culberson
     Deal (GA)
     Feeney
     Fossella
     Foxx
     Franks (AZ)
     Garrett (NJ)
     Gingrey
     Hensarling
     Hoekstra
     Jordan
     King (IA)
     Kingston
     Lamborn
     Mack
     McCotter
     McHenry
     Miller (FL)
     Musgrave
     Neugebauer
     Pearce
     Poe
     Price (GA)
     Radanovich
     Royce
     Sali
     Shadegg
     Sullivan
     Tancredo
     Thornberry
     Wamp
     Weldon (FL)
     Westmoreland
     Wilson (SC)

                             NOT VOTING--28

     Baird
     Berman
     Boustany
     Calvert
     Costello
     Davis, Jo Ann
     DeFazio
     Everett
     Flake
     Gallegly
     Green, Gene
     Gutierrez
     Harman
     Hastert
     Hulshof
     LaHood
     Latham
     LoBiondo
     Lowey
     Miller (NC)
     Miller, Gary
     Nadler
     Pence
     Smith (TX)
     Stark
     Udall (NM)
     Waters
     Wicker

                              {time}  1710

  Mr. CRENSHAW and Mr. SHUSTER changed their vote from ``no'' to 
``aye.''
  So (two-thirds being in the affirmative) the rules were suspended and 
the bill, as amended, was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.
  Stated for:
  Mr. DeFAZIO. Mr. Speaker, due to a personal leave of absence, I was 
unable to vote on passage of the Small Business Tax Relief Act, H.R. 
976, rollcall vote No. 102. Had I been present, I would have voted 
``aye'' on the bill.

                          ____________________