House Tax Bill Adheres to Balanced Budget Rules and Expands Child Tax Credit

December 12, 2007

With the end of the year and tax season fast approaching, U.S. Rep. Ed Perlmutter urged his colleagues in the House and the Senate to immediately pass meaningful tax relief that will alleviate the tax burden for more than 34,000 households within Colorado ’s 7th Congressional District. The Congressman also urged the President to stop playing politics and sign the Alternative Minimum Tax (AMT) “patch” so people can count on this critical tax relief as they end the year and plan for next year.

“The reality is home values are dropping, and the costs of health care, energy and college education continue to rise. The hard-working people in the middle are feeling a squeeze, and it is our responsibility to provide them with meaningful tax relief,” said Perlmutter. “For months, the White House and the Senate have been playing politics with people’s hard-earned money. Enough is enough. It is time to live within our means and enact meaningful tax relief that will help more than 21 million people nationwide – including more than 34,000 in my own Congressional district.”

The AMT “patch,” HR 4351, will extend for one year alternative minimum tax relief for joint filers earning $66,260 or less, and it also expands the child tax credit. This tax relief adheres to important House “pay-as-you-go” provisions, which requires the House to live within a balanced budget and pay for any revenue cuts.

The House passed AMT relief more than one month ago, however, the Senate eliminated the “pay-as-you-go” provisions as well as other tax relief provisions, and only passed the one-year AMT “patch.” The President threatened to veto the earlier House version of the bill because of the “pay-as-you-go” offsets, and it is unclear if he will continue with this threat.

Perlmutter stated, “I am frustrated this President continues to play politics with this issue. Most Americans live within a budget, and here in the House of Representatives, we are living within a budget. This President clearly doesn’t understand the concept of living within your means and just wants to cut revenue without making it up with other sources of income. This bill 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.”