Madam Speaker,  I rise today to voice my strong support for the Temporary Tax Relief Act (H.R. 3996).  This comprehensive legislation will provide fiscally responsible tax relief for hard-working, middle-class Americans, help stimulate our nation’s small businesses and provide financial support to public servants nationwide. 

The Temporary Tax Relief Act represents a new direction in tax policy that will offer assistance to thousands of Rhode Island middle-class families.  I am particularly pleased that this legislation includes a one-year patch to keep millions of hard-working, middle-class Americans outside the ever-widening net of the alternative minimum tax (AMT).  Congress first enacted the AMT in 1969 to ensure that 155 wealthy taxpayers paid their fair share of the federal income tax, but because they neglected to index the tax for inflation, it has since become outdated and unfair.  If left unfixed, this year over 23 million Americans – and 75,000 Rhode Islanders – will be forced to pay nearly $2,000 in additional taxes. 

The bill before us will also expand the refundable child tax credit by reducing the minimum income eligibility level from $11,000 to $8,500, thereby allowing more Rhode Island families to take advantage of this important credit.  In addition, this legislation will help stem the rising cost of higher education by extending the above-the-line tax deduction for qualified education expenses up to $4,000.  H.R.3996 also provides much-needed tax relief to homeowners who do not itemize their deductions by permitting married couples to deduct up to $500, and single taxpayers to deduct up to $250, in property taxes, in addition to their standard deductions.

It’s not just middle-class taxpayers who will reap the benefits of this bill.  The Temporary Tax Relief Act contains a number of provisions that will help stimulate our nation’s small businesses, including a one-year extension of the Research and Development (R&D) tax credit, which will keep American companies competitive and spur businesses to invest in the future and create jobs.  Also included is a provision that will grant small businesses a tax incentive for committing to invest in local community development.

Finally, H.R. 3996 directs well-deserved financial assistance to our nation’s public servants.  Under this legislation, more than three million teachers will be able to deduct out-of-pocket expenses, including books and other school supplies, for their classrooms.  I am also proud to support a provision to provide tax relief for thousands of American troops in combat under the Earned Income Tax Credit.

Perhaps most importantly, this measure is fully paid for and will not add a penny to our national debt.  We made a commitment to the American people to abide by pay-as-you-go rules so that our children and grandchildren will not bear the cost of the decisions we make.  Today we reaffirm our commitment to fiscal responsibility, while maintaining our promise to helping middle-class families and small businesses nationwide.  I would like to thank Chairman Rangel for his leadership in crafting a balanced, responsible and urgently needed bill, and I urge my colleagues to join me in supporting this important legislation.