ROSKAM INTRODUCES BILL PROVIDING TAX RELIEF FOR 71,000 IL-6 HOMEOWNERS
Roskam Co-sponsors Bill to Allow Taxpayers to Deduct Property Taxes
Washington, Oct 25 - Congressman Peter J. Roskam (R-IL) yesterday partnered in introducing the Homeowners' Property Tax Relief Act to ensure that hard-working Illinois families are not hit with higher taxes under the Alternative Minimum Tax (AMT).
"You might think a tax that has the word minimum' in its name sounds more appealing than the tax you're paying now. Don't be fooled. There is nothing minimal' about it. And soon this tax will be a real burden on thousands of 6th Congressional District residents," said Roskam. "This legislation very simply allows homeowners keep more of their hard-earned money when unduly burdened under the AMT tax."
Under current law, taxpayers who itemize their federal tax returns and are not affected by the AMT are able to deduct their property taxes. However, taxpayers who have tax liability under the AMT cannot deduct property taxes from their federal tax liability.
The Homeowners' Property Tax Relief will allow taxpayers to deduct the cost of their property taxes from their federal income tax liability even if they are subject to the AMT.
If the AMT patch can not be fixed, approximately 71,371 tax returns in Illinois' 6th Congressional District would potentially be subjected to the higher rates of the AMT, up from 9,000 in 2006.
"I am working with my colleagues on both sides of the aisle to find a solution to the Alternative Minimum Tax," continued Roskam. "This measure was never meant to affect middle-income families. While Congress continues to debate how to fix this problem, I want to assure my constituents that they won't be unexpectedly slapped with higher tax rates. Amidst the ongoing turmoil in the housing market, the last thing Americans deserve is to be piled on with higher taxes."