Washington, D.C. - U.S. Congressman Kevin Brady today opposed efforts by the Democrat majority to raise taxes to pay for temporary tax relief for taxpayers facing the alternative minimum tax, while ignoring other important relief beneficial to middle-class families and small businesses
 
“It’s unfortunate that House Democrats continue to play games with important issues that face middle class American families, like the looming Alternative Minimum Tax”, said Brady, who supports repeal of the AMT and extension of the state and local sales tax deduction.  “The reality is that next year 23 million families making over $75,000 a year will be facing a tax increase of $2,000. By refusing to accept a reasonable Senate compromise that doesn’t increase taxes, the House has guaranteed that many Americans will see major delays in their tax refunds next year.”
 
The IRS says that delays by this Congress in addressing the AMT means that tax refunds will be delayed by several months next year.
 
The House also decided not to extend popular tax breaks that expire this year such as the state and local sales tax, college tuition deduction, teacher classroom supplies deduction and the research and development tax credit.
 
Brady believes he and others will be able to convince the Congress to extend the sales tax deduction next year.
 
“Even though Texas taxpayers will be able to deduct the state and local sales tax on items they buy this year, it’s important for fairness that this deduction be extended for 2008”, said Brady who successfully championed restoring the deduction in 2004. That tax break saves Texas taxpayers $1.2 billion a year according to Texas Comptroller Susan Combs.