Rep. Lofgren Votes to Pass Middle Class Tax Relief Bill

Representative Zoe Lofgren (D-San Jose) today issued the following statement on her vote to pass H.R. 3996, the Temporary Tax Relief Act.

Today, I joined with a majority of my colleagues in the House in passing H.R. 3996, the Temporary Tax Relief Act, which corrects numerous inequities in our tax code. This bill, while not perfect, will protect 23 million middle class Americans from the Alternative Minimum Tax (AMT). In California alone it is estimated that over 3 million families will be subject to the AMT this year, with 57,000 of those families residing in the 16^th Congressional District. The bill will also provide 30 million homeowners with property tax relief, help 4.5 million families better afford college with the tuition deduction, extend the R&D tax credit to promote innovation and high-paying jobs, and save 3.4 million teachers money with a deduction for classroom expenses.

While concerned that several provision of the bill could adversely impact future venture capital investment, I believe that these provisions will be addressed as the Senate version of the bill moves forward. I’m delighted that H.R. 3996 does include an Incentive Stock Option (ISO) provision that corrects a severe inequity in the AMT tax system and finally resolves the ongoing AMT Incentive Stock Option crisis. This essential provision provides relief for hard working Americans who are treated unjustly by the tax burden caused when exercising their Incentive Stock Options. Under this important provision, employees will pay a fair and proportional tax on money actually made and will be relieved of the impossible burden of ongoing liability to pay taxes on income never received. This provision will help ensure that our companies continue attracting the best and brightest with competitive compensation packages.

The bill does all of this while adhering to strict pay-as-you-go rules, reversing years of failed Republican policies that have mortgaged our grandchildren’s future and stuck our nation with $9 trillion of debt. It closes loopholes which have allowed a privileged few Wall Street insiders, many of whom earn hundreds of millions of dollars a year, to avoid paying their fair share of income tax. It also it includes provisions to stop hedge fund managers and corporate CEOs from escaping income taxes by using offshore tax havens as unlimited retirement accounts.

Democrats are leading our nation in a new direction, one where fiscal responsibility, tax fairness, and economic growth are no longer mutually exclusive.