Today, Rep. Ed Perlmutter (CO-07) joined with a majority of the House of Representatives to pass HR 3996, the Temporary Tax Relief Act of 2007.
Included within this act is an extension of important tax relief provisions to veterans and our reservists and the men and women in the National Guard introduced by Rep. Perlmutter. The Military Financial Assistance Act, included within HR 3996, continues to allow reservists and National Guard personnel called to active duty to make an early withdrawal from their retirement plans without paying a 10% penalty tax. Rep Perlmutter’s legislation allows veterans to receive a loan financed by qualified mortgage bonds without regard to the first-time homebuyer requirement.
“This bill upholds our commitment to our veterans by extending critical tax relief,” said Perlmutter. “Our reservist and Guard personnel have given a great service to our country, and we must give back to them.”
Additionally, the Temporary Tax Relief Act will provide immediate tax relief for working families by preventing 23 million middle class families from paying higher taxes this April by rolling back the Alternative Minimum Tax (AMT), a tax that was never designed to apply to middle-class families.
Specifically, this legislation saves more than 34,000 households within Colorado’s 7th Congressional District from having to pay the alternative minimum tax. (House Ways & Means Committee).
“This bill is real tax relief for the hardworking people in the middle,” said Perlmutter. “It is a fiscally responsible way to end the prior Congress’ practice of borrowing tens of billions of dollars each year to patch the AMT. It closes an unfair tax loophole allowing the privileged few to avoid paying their fair share of taxes.”
This legislation is entirely revenue-neutral and will not add to the deficit. The bill helps 12 million children in low-income families by increasing eligibility for the refundable child tax credit. Also, the bill extends various expiring tax provisions, including deductions for state and local sales taxes, teachers’ classroom expenses and tuition payments.
“This is a proud accomplishment of mine, and this Democratic Congress, to help pass this important tax relief package and uphold my commitment to the people of Colorado ’s 7th Congressional District.”
