Tax Relief Bills Reflect Commitment to Restore Middle Class

Press Release

Tax Relief Bills Reflect Commitment to Restore Middle Class

Address Alternative Minimum Tax, Expand Child Tax Credit & Offer Tax Incentives to encourage renewable energy and Job creation

Congresswoman Rosa L. DeLauro (CT-3) supported two bills targeted to bring tax relief to middle class Americans - the Alternative Minimum Tax Relief Act of 2008 (H.R. 7005) and the Renewable Energy and Job Creation Tax Act of 2008 (H.R. 7060).

"These bills illustrate our commitment to restoring middle class prosperity - a clear and practical approach to strengthen our economy, achieve energy independence and give families the opportunity to reach for the American Dream," said DeLauro. "With the Alternative Minimum Tax Relief Act we will protect more than 25 million middle class families from this tax. In my district in Connecticut, failing to act on the AMT would mean new taxes on over 81,000 households."

The Alternative Minimum Tax Relief Act of 2008 (H.R. 7005) would extend for one year AMT relief for nonrefundable personal credits and increases the AMT exemption amount to $69,950 for joint filers and $46,200 for individuals. The tax was put into place to ensure that the wealthiest families did not escape paying taxes altogether. Unfortunately it has grown to be such a problem that it now threatens middle class workers, such as teachers and firefighters.

"Additionally, with the tax incentives for renewable energy, carbon capture and sequestration demonstration projects, energy efficiency and conservation, we can once again, harness our nation's innovative spirit and break our dependence on foreign oil," continued DeLauro. "And I am particularly pleased that we will also expand the Child Tax Credit. By expanding the Child Tax Credit, lowering its floor to $8,500, we are making a direct and critical impact on 13 million children-that is approximately 3 million newly eligible children and 10 million additional children whose families will see their credit increased."

The Renewable Energy and Job Creation Tax Act of 2008 (H.R. 7060) will extend and expand tax incentives for renewable energy, create and retain hundreds of thousands of green jobs, spur American innovation and business investment, cut taxes for millions of Americans, and close loopholes allowing U.S. executives to avoid U.S. taxes by shipping investment overseas. Additionally it will expand the Child Tax Credit of which DeLauro was a vocal champion while extending popular tax credits and deductions set to expire at the end of the year, such as deductions for tuition expenses and the R&D tax credit, among others.

On explaining the importance of extending the Child Tax Credit, DeLauro added, "I have long believed that with the child tax credit we make opportunity real for millions of families. Today, amidst our current financial crisis and an economy that continues to shed jobs and produces less income, these 13 million children come from families with parents who work hard and struggle everyday just to get by. We have a responsibility to make our economy work, a responsibility to make ordinary Americans face today's economic challenges - expanding the child tax credit is a great way to do it."

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