New Legislation Provides Tax Relief for 20,175 Households in the 43rd District

Washington, DC –  Rep. Joe Baca (D-Rialto) today voted for legislation that offers more than $50 billion in middle-class tax relief and saves 20,175 households in the 43rd Congressional District from paying higher taxes under the Alternative Minimum Tax. The Temporary Tax Relief Act is fiscally responsible and fully paid for, and was approved by a vote of 216-193.

“Families in California have seen the cost of health care, gasoline and a college education skyrocket while their homes have lost value,” said Rep. Baca.  “I am proud to vote for a plan that cuts taxes for middle class families and saves over 20,000 households in the 43rd Congressional District from paying the Alternative Minimum Tax.”

The Alternative Minimum Tax was originally designed to ensure very wealthy individuals do not avoid paying income tax. The tax now threatens to impact middle-class families, and would raise taxes on 23 million Americans if Congress failed to take action.

The Temporary Tax Relief Act of 2007 protects 23 million middle-class families from being hit by the Alternative Minimum Tax and includes a series of other provisions that provide tax relief to working families. The bill:

•    Provides 30 million homeowners with property tax relief;
•    Helps 12 million children by expanding the child tax credit;
•    Benefits 11 million families  through the State and local sales tax deduction;
•    Helps 4.5 million families better afford college with tuition deductions;
•    Saves 3.4 million teachers money with a deduction for classroom expenses; and,
•    Provides thousands of American troops in combat with tax relief under the Earned Income Tax      Credit.

The Temporary Tax Relief is fully paid for and does not add to the deficit.  The bill will grow America’s sagging economy with tax relief to promote innovation and high-paying jobs.

“Democrats have brought fiscal responsibility back to Washington,” added Rep. Baca. “Instead of skyrocketing budgets and tax breaks for the wealthy few, we are practicing fiscal restraint and working to provide tax relief to tens of millions hard-working, middle class families.”

The legislation also restores fairness to the tax code and closes wasteful tax loopholes. The Temporary Tax Relief Act closes tax loopholes that allow the privileged few on Wall Street to pay a lower tax rate on their income than other hardworking Americans, such as teachers and firefighters. Additionally, the bill prevents Wall Street hedge fund managers and corporate CEOs from escaping income taxes by using offshore tax havens as unlimited retirement accounts, while middle-class families play by the rules and pay their fair share of taxes.