Washington, D.C. - On Thursday, as the House Ways and Means Committee considered ways to delay for one year the Alternative Minimum Tax, U.S. Congressman Kevin Brady (R-The Woodlands) pushed two amendments to prevent further damaging America's ailing housing and real estate market. Committee Democrats turned away Brady's proposals, voting unanimously to levy billions of dollars of new taxes on owners of second homes and real estate partnerships that develop local apartments, hotels, shopping centers, office buildings and industrial parks.

            "This new Congress is helping burst the housing bubble, punishing families who invest in a retirement or vacation home, and jeopardizing business investment in our local economies", said Brady. "They are shooting at Wall Street but hitting Main Street."

            The Democrat bill increases future taxes on owners of second homes in America - which made up 40% of all homes sales last year according to the National Association of Realtors.  It also doubles the tax rate on income by investment managers of certain types of partnerships, including traditional real estate partnerships responsible for building much of the commercial development in most communities across the country.

             Real estate leaders describe the tax as "the most significant and potentially disruptive tax on real estate" since the 1986 Tax Reform Act that led to massive real estate loan defaults and foreclosures across the country.

            "Why in heaven's sake is Congress risking the economic vitality of our country?", asks Brady. "Democrat leaders claim they are targeting greedy hedge fund managers, but they are punishing traditional real estate partnerships that have done nothing wrong but help responsibly build the local economies of our nation."

             "It makes no sense either to devalue second homes, which will have an impact on the economy and many communities whose future relies upon retirees and vacation homes."

Congressman Brady holds the leadership post of Deputy Whip and serves on the Ways & Means Committee, which has  jurisdiction over 2/3 of the federal budget including taxes, Social Security, Medicare, international trade and welfare.  He serves on the Social Security and Trade subcommittees.