Tax Increase Prevention Act of 2007

Floor Speech

TAX INCREASE PREVENTION ACT OF 2007 -- (House of Representatives - December 19, 2007)

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Ms. LINDA T. SÁNCHEZ of California. Madam Speaker, today I am voting against H.R. 3996, a bill adjusting the Alternative Minimum Tax. While the bill helps some middle class families, it does so at the expense of expanding our national debt and burdening the next generation with the cost of paying for it. I voted for the original version of this bill that came before the House earlier this fall because it was fiscally responsible. It brought relief to middle class families in a budget-neutral way by closing tax loopholes for hedge fund
managers and corporate CEOs who shield their income off-shore. Unfortunately, the Senate stripped out the provisions that would replace the revenue lost through this AMT adjustment, so I cannot in good conscience support it.

The AMT was originally enacted to ensure that high income taxpayers pay at least a minimum amount of federal taxes. It prevents individuals from taking unfair advantage of the various preferences and incentives under the regular income tax and reducing their income tax liability below what we as a society consider an appropriate tax contribution given their wealth. The reckless tax policies advanced by President Bush during the past 6 years further complicated the way the AMT is applied. As a result, it will affect around 20 million families next year, many of whom the AMT was not originally intended to reach.

Reforming the AMT is warranted, and that's why I voted for this bill when it was paid for. Now we have a $50 billion give-away that's not paid for. Instead, it will increase our national debt, a debt financed by China and other nations. And the next generation--our children and grandchildren--will be stuck paying China back instead of investing in America. That's wrong. I believe that we must adhere to the pay-as-you-go rules that this House adopted at the beginning of the year. Just as a family has to balance its checkbook, the federal government must do the same. A federal government that is not fiscally sound cannot make the necessary investments we need in education, health care, housing, defense, homeland security, and other national priorities.

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