House Considers Tax Legislation
The full House of Representatives considered two different tax measures in recent weeks: an extension of the moratorium on taxes on the Internet (H.R. 3678) and legislation that critics argued was a tax increase disguised as a tax cut (H.R. 3996). Congressman Platts voted in favor of the moratorium and against the tax increase.
Since 1998, a moratorium has been imposed on the state or local taxation of Internet access, as well as discriminatory or multiple taxes on electronic commerce. H.R. 3678, which was passed by a vote of 405-2 in the House and unanimously in the Senate, extends this moratorium through 2014. President George W. Bush signed H.R. 3678 into law on October 31, 2007.
Last session, Congress enacted temporary relief from the Alternative Minimum Tax (AMT) for millions of middle-income families. The AMT was enacted in 1969 as a way to ensure higher-income Americans pay a minimum amount in taxes. At the time, it was aimed at 155 wealthy individuals who paid no income tax. Due to inflation eroding the value of the exemption from the tax, the AMT has over time impacted greater numbers of middle-income families. Specifically, 4.2 million Americans paid the AMT in 2006.
Unless Congress acts, the temporary relief from the AMT enacted last session will expire and as many as 25 million families will have to pay the tax. H.R. 3996 would have delayed this tax increase, but for only one year. At the same time, H.R. 3996 would have permanently increased taxes elsewhere, largely on certain investment funds, by more than $70 billion over 10 years.
“I strongly support AMT tax relief and have consistently voted for such relief,” Rep. Platts stated, “but this bill is the wrong approach. Congress needs to act now on a straight-forward measure to prevent millions of middle-class families from being wrongly impacted by the AMT.”
H.R. 3996 was ultimately passed in the House by a vote of 216-193, with eight Democrats and all Republicans voting against it. The bill is now pending in the Senate.
Members Urge Floor Action on Veterans Funding
Rep. Platts recently joined with other Members of the House in urging Speaker Nancy Pelosi to complete work on a veterans funding bill prior to Congress adjourning for the Thanksgiving Day district work period. The bill had been attached to an unrelated measure funding the Departments of Labor, Health and Human Services, and Education.
“Veterans Day has come and gone; yet a [fiscal year 2008] Military Construction and Veterans Affairs Conference Report remains stalled even though the measure funds important benefits critical to our veterans and troops now returning home from Iraq, such as housing and health care,” a letter from more than 100 House Members including Rep. Platts to Speaker Nancy Pelosi states. The letter continues: “Last week, in accordance with Senate rules, the [two different funding] measures were decoupled, and Rep. Roger Wicker (R-MS) immediately introduced the Military Construction and Veterans Affairs portion of the conference report as a stand-alone measure (H.R. 4104).”
The letter concludes: “We urge you to bring H.R. 4104 to the House floor before adjourning on Friday so that the Senate can follow suit and send it to the President’s desk for his signature. Our veterans and our men and women in uniform deserve all the support and resources this Congress can provide. We shouldn’t leave town until we fulfill our promises and complete work on this critical bill.”
Statement Regarding Iraq Vote
Congressman Platts recently voted against legislation (H.R. 4156) linking continued funding for the U.S. military in Iraq and Afghanistan with the condition that U.S. troops begin withdrawing from Iraq within 30 days. The legislation also establishes a “goal” of completing the withdrawal by December 15, 2008. The bill passed by a vote of 218-203 and is now pending in the Senate. Congressman Platts issued the following statement:
“Our nation’s highest priority must be to provide our courageous troops serving in harm’s way the resources they need to fulfill their mission and return home safely. Unfortunately, Speaker Pelosi is seeking to tie up these important resources for our troops with artificially set deadlines and politically motivated withdrawal dates for our efforts in Iraq. As I have long maintained, our approach towards Iraq must be guided by the facts on the ground, not partisan politics in Washington.”
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