Providing for Consideration of H.R. 3996, Temporary Tax Relief Act of 2007

PROVIDING FOR CONSIDERATION OF H.R. 3996, TEMPORARY TAX RELIEF ACT OF 2007 -- (Extensions of Remarks - November 13, 2007)

* Mrs. MALONEY of New York. Mr. Speaker, I rise in support of H.R. 3996, the Temporary Tax Relief Act of 2007.

* 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. Without this legislation, these 23 million families will be subjected to the alternative minimum tax, including almost 111,000 of my constituents.

* When the AMT was enacted, it was meant to ensure the wealthiest among us paid their fair share of a tax that was never designed to hit the pocketbooks of middle-class families. While this is only a temporary fix, I want to be clear that I hope we can move forward in the near future to provide a long-term solution to this problem. I am proud that Chairman Rangel has brought this fix to the floor today while still adhering to the pay-as-you-go promise this Democratic controlled Congress has promised the American people.

* While fixing the AMT is of outmost importance, we cannot afford to mortgage our children's and grandchildren's future to pay for this tax relief. Our country is currently burdened with over $9 trillion of national debt, each American's share at nearly $30,000.

* We simply cannot afford to keep adding to this. In addition to the AMT fix, this bill would increase the eligibility for the refundable child tax credit, it extends research and development tax credits to promote innovative and high-paying jobs, and we are providing tax relief to millions of homeowners suffering from the current subprime mortgage crisis.

* One concern that I do have with this legislation is the potential that the change to the taxation of ``carried interest'' may have the unintended consequence of capturing certain real estate partnerships.

* We should not treat capital gains in real estate partnerships as ordinary income. These partnerships invest their own capital and should continue to be taxed at the capital gains rate.

* I have joined a group of my colleagues asking for report language to clarify this issue and I hope that this concern will be addressed before final implementation of this legislation.

* Mr. Speaker, the Democrats in Congress are providing common sense tax relief for middle class American families and we are doing it in a fiscally responsible way. I urge this bill's adoption.

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