H15368 CONGRESSIONAL RECORD — HOUSE December 12, 2007 Wamp Westmoreland Wilson (SC) Gonzalez Mahoney (FL) Royce NOT VOTING—12 Weldon (FL) Wicker Young (AK) Goodlatte Maloney (NY) Ruppersberger Carson Jindal Neugebauer Gordon Manzullo Rush Cubin Marshall Paul NOT VOTING—12 Granger Marchant Ryan (OH) Hooley Matheson Spratt Carson Hunter Neugebauer Graves Matsui Ryan (WI) Hunter Miller, Gary Tancredo Cubin Jindal Paul Green, Al McCarthy (CA) Salazar Gohmert Matheson Spratt Green, Gene McCarthy (NY) Sali ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Hooley Miller, Gary Tancredo Hall (NY) McCaul (TX) Sa´ nchez, Linda Hall (TX) McCollum (MN) T. The SPEAKER pro tempore (during ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Hare McCotter Sanchez, Loretta the vote). Members are advised 2 min- The SPEAKER pro tempore (during Harman McCrery Sarbanes utes remain in this vote. the vote). Members are advised 2 min- Hastings (FL) McHenry Saxton Hastings (WA) McHugh Schiff utes remain in this vote. Hayes McIntyre Schmidt b 1655 Heller McKeon Schwartz b 1647 Hensarling McMorris Scott (GA) Messrs. DAVIS of Illinois, FATTAH, GEORGE MILLER of California and Mr. MARCHANT changed his vote Herger Rodgers Scott (VA) Herseth Sandlin McNerney Sessions DEFAZIO changed their vote from from ‘‘aye’’ to ‘‘no.’’ Higgins McNulty Sestak ‘‘yea’’ to ‘‘nay.’’ Mr. GOODLATTE changed his vote Hill Meek (FL) Shadegg So the conference report was agreed from ‘‘no’’ to ‘‘aye.’’ Hinojosa Melancon Shays Hirono Mica Shea-Porter to. So the bill was passed. Hobson Miller (FL) Sherman The result of the vote was announced The result of the vote was announced Hodes Miller (MI) Shimkus as above recorded. as above recorded. Hoekstra Miller (NC) Shuler A motion to reconsider was laid on A motion to reconsider was laid on Holden Mitchell Shuster Holt Mollohan Simpson the table. the table. Honda Moore (KS) Sires Stated for: Hoyer Moran (KS) Skelton f Hulshof Moran (VA) Slaughter Mr. MARSHALL. Mr. Speaker, on rollcall CONFERENCE REPORT ON H.R. 1585, Inglis (SC) Murphy (CT) Smith (NE) No. 1151, H.R. 1585, The National Defense Inslee Murphy, Patrick Smith (NJ) Authorization Act for Fiscal Year 2008, In in- NATIONAL DEFENSE AUTHORIZA- Israel Murphy, Tim Smith (TX) TION ACT FOR FISCAL YEAR 2008 Issa Murtha Smith (WA) advertently failed to record my vote. But for Jefferson Musgrave Snyder this oversight, I would have voted ‘‘yea.’’ The SPEAKER pro tempore. The un- Johnson (GA) Myrick Solis finished business is on agreeing to the Johnson (IL) Nadler Souder f conference report on the bill (H.R. Johnson, E. B. Napolitano Space Johnson, Sam Neal (MA) Stearns 1585), on which the yeas and nays were Jones (NC) Nunes Stupak MESSAGE FROM THE PRESIDENT ordered. Jordan Oberstar Sullivan A message in writing from the Presi- The Clerk read the title of the bill. Kagen Obey Sutton Kanjorski Ortiz Tanner dent of the United States was commu- The SPEAKER pro tempore. The Kaptur Pascrell Tauscher nicated to the House by Ms. Wanda question is on agreeing to the con- Keller Pearce Taylor Evans, one of his secretaries. ference report. Kennedy Pence Terry This will be a 5-minute vote. Kildee Perlmutter Thompson (CA) Kilpatrick Peterson (MN) Thompson (MS) f The vote was taken by electronic de- Kind Peterson (PA) Thornberry vice, and there were—yeas 370, nays 49, King (IA) Pickering Tiahrt AMT RELIEF ACT OF 2007 not voting 12, as follows: King (NY) Pitts Tiberi Kingston Platts Tsongas [Roll No. 1151] Mr. RANGEL. Mr. Speaker, pursuant Kirk Poe Turner to House Resolution 861, I call up the YEAS—370 Klein (FL) Pomeroy Udall (CO) Kline (MN) Porter Udall (NM) bill (H.R. 4351) to amend the Internal Abercrombie Broun (GA) Davis, Lincoln Knollenberg Price (GA) Upton Ackerman Brown (SC) Davis, Tom Revenue Code of 1986 to provide indi- Kuhl (NY) Price (NC) Van Hollen viduals temporary relief from the al- Aderholt Brown, Corrine Deal (GA) LaHood Pryce (OH) Visclosky Akin Brown-Waite, DeGette Lamborn Putnam Walberg ternative minimum tax, and for other Alexander Ginny Delahunt Lampson Radanovich Walden (OR) purposes, and ask for its immediate Allen Buchanan DeLauro Langevin Rahall Walsh (NY) consideration. Altmire Burgess Dent Lantos Ramstad Walz (MN) Andrews Burton (IN) Diaz-Balart, L. Larsen (WA) Rangel Wamp The Clerk read the title of the bill. Arcuri Butterfield Diaz-Balart, M. Larson (CT) Regula Wasserman The text of the bill is as follows: Baca Buyer Dicks Latham Rehberg Schultz H.R. 4351 Bachmann Calvert Dingell LaTourette Reichert Watt Bachus Camp (MI) Donnelly Levin Renzi Waxman Be it enacted by the Senate and House of Rep- Baird Campbell (CA) Doolittle Lewis (CA) Reyes Weiner resentatives of the United States of America in Baker Cannon Doyle Lewis (KY) Reynolds Weldon (FL) Congress assembled, Barrett (SC) Cantor Drake Linder Richardson Weller SECTION 1. SHORT TITLE, ETC. Barrow Capito Dreier Lipinski Rodriguez Westmoreland Bartlett (MD) Capps Edwards LoBiondo Rogers (AL) Wexler (a) SHORT TITLE.—This Act may be cited as Barton (TX) Cardoza Ehlers Loebsack Rogers (KY) Whitfield the ‘‘AMT Relief Act of 2007’’. Bean Carnahan Ellsworth Lofgren, Zoe Rogers (MI) Wicker (b) REFERENCE.—Except as otherwise ex- Becerra Carney Emanuel Lowey Rohrabacher Wilson (NM) pressly provided, whenever in this Act an Berkley Carter Emerson Lucas Ros-Lehtinen Wilson (OH) amendment or repeal is expressed in terms of Berman Castle Engel Lungren, Daniel Roskam Wilson (SC) Berry Castor English (PA) an amendment to, or repeal of, a section or E. Ross Wolf other provision, the reference shall be con- Biggert Chabot Eshoo Lynch Rothman Young (AK) Bilbray Chandler Etheridge Mack Roybal-Allard Young (FL) sidered to be made to a section or other pro- Bilirakis Clay Everett vision of the Internal Revenue Code of 1986. Bishop (GA) Clyburn Fallin NAYS—49 (c) TABLE OF CONTENTS.—The table of con- Bishop (NY) Coble Farr tents for this Act is as follows: Bishop (UT) Cohen Feeney Baldwin Jackson (IL) Payne Sec. 1. Short title, etc. Blackburn Cole (OK) Ferguson Capuano Jackson-Lee Petri Blumenauer Conaway Flake Clarke (TX) Schakowsky TITLE I—INDIVIDUAL TAX RELIEF Blunt Cooper Forbes Cleaver Jones (OH) Sensenbrenner Sec. 101. Extension of alternative minimum Boehner Costa Fortenberry Conyers Kucinich Serrano tax relief for nonrefundable per- Bonner Costello Fossella Davis (IL) Lee Stark Bono Courtney Foxx DeFazio Lewis (GA) sonal credits. Tierney Sec. 102. Extension of increased alternative Boozman Cramer Franks (AZ) Doggett Markey Towns Boren Crenshaw Frelinghuysen Duncan McDermott minimum tax exemption Vela´ zquez Boswell Crowley Gallegly Ellison McGovern Waters amount. Boucher Cuellar Garrett (NJ) Fattah Meeks (NY) Watson Sec. 103. Increase of AMT refundable credit Boustany Culberson Gerlach Filner Michaud amount for individuals with Boyd (FL) Cummings Giffords Frank (MA) Miller, George Welch (VT) Boyda (KS) Davis (AL) Gilchrest Goode Moore (WI) Woolsey long-term unused credits for Brady (PA) Davis (CA) Gillibrand Grijalva Olver Wu prior year minimum tax liabil- Brady (TX) Davis (KY) Gingrey Gutierrez Pallone Wynn ity, etc. Braley (IA) Davis, David Gohmert Hinchey Pastor Yarmuth Sec. 104. Refundable child credit.

VerDate Aug 31 2005 06:48 Dec 13, 2007 Jkt 069060 PO 00000 Frm 00050 Fmt 7634 Sfmt 0655 E:\CR\FM\A12DE7.041 H12DEPT1 bajohnson on PROD1PC71 with HOUSE December 12, 2007 CONGRESSIONAL RECORD — HOUSE H15369 TITLE II—REVENUE PROVISIONS ment of this subsection which is attributable ‘‘(i) the amount of interest determined Subtitle A—Nonqualified Deferred Com- to the application of section 56(b)(3) for any under paragraph (2), and pensation From Certain Tax Indifferent taxable year ending before January 1, 2007 ‘‘(ii) an amount equal to 20 percent of the Parties (and any interest or penalty with respect to amount of such compensation. such underpayment which is outstanding on Sec. 201. Nonqualified deferred compensa- ‘‘(2) INTEREST.—For purposes of paragraph such date of enactment), is hereby abated. tion from certain tax indif- (1)(B)(i), the interest determined under this No credit shall be allowed under this section ferent parties. paragraph for any taxable year is the with respect to any amount abated under amount of interest at the underpayment rate Subtitle B—Codification of Economic this paragraph. under section 6621 plus 1 percentage point on Substance Doctrine ‘‘(2) INCREASE IN CREDIT FOR CERTAIN INTER- the underpayments that would have occurred Sec. 211. Codification of economic substance EST AND PENALTIES ALREADY PAID.—Any in- had the deferred compensation been includ- doctrine. terest or penalty paid before the date of the ible in gross income for the taxable year in Sec. 212. Penalties for underpayments. enactment of this subsection which would which first deferred or, if later, the first tax- Subtitle C—Other Provisions (but for such payment) have been abated able year in which such deferred compensa- Sec. 221. Delay in application of worldwide under paragraph (1) shall be treated for pur- tion is not subject to a substantial risk of allocation of interest. poses of this section as an amount of ad- forfeiture. justed net minimum tax imposed for the tax- Sec. 222. Modification of penalty for failure ‘‘(d) OTHER DEFINITIONS AND SPECIAL to file partnership returns. able year of the underpayment to which such RULES.—For purposes of this section— Sec. 223. Penalty for failure to file S cor- interest or penalty relates.’’. ‘‘(1) SUBSTANTIAL RISK OF FORFEITURE.— poration returns. (c) EFFECTIVE DATE.— ‘‘(A) IN GENERAL.—The rights of a person to Sec. 224. Increase in minimum penalty on (1) IN GENERAL.—Except as provided in compensation shall be treated as subject to a failure to file a return of tax. paragraph (2), the amendments made by this substantial risk of forfeiture only if such Sec. 225. Time for payment of corporate esti- section shall apply to taxable years begin- person’s rights to such compensation are mated taxes. ning after December 31, 2006. (2) ABATEMENT.—Section 53(f)(1) of the In- conditioned upon the future performance of TITLE I—INDIVIDUAL TAX RELIEF ternal Revenue Code of 1986, as added by sub- substantial services by any individual. SEC. 101. EXTENSION OF ALTERNATIVE MINIMUM section (b), shall take effect on the date of ‘‘(B) EXCEPTION FOR COMPENSATION BASED TAX RELIEF FOR NONREFUNDABLE the enactment of this Act. ON GAIN RECOGNIZED ON AN INVESTMENT PERSONAL CREDITS. SEC. 104. REFUNDABLE CHILD CREDIT. ASSET.— (a) IN GENERAL.—Paragraph (2) of section (a) MODIFICATION OF THRESHOLD AMOUNT.— ‘‘(i) IN GENERAL.—To the extent provided in 26(a) (relating to special rule for taxable Clause (i) of section 24(d)(1)(B) is amended by regulations prescribed by the Secretary, if years 2000 through 2006) is amended— inserting ‘‘($8,500 in the case of taxable years compensation is determined solely by ref- (1) by striking ‘‘or 2006’’ and inserting beginning in 2008)’’ after ‘‘$10,000’’. erence to the amount of gain recognized on ‘‘2006, or 2007’’, and (b) EFFECTIVE DATE.—The amendment the disposition of an investment asset, such (2) by striking ‘‘2006’’ in the heading thereof made by subsection (a) shall apply to taxable compensation shall be treated as subject to a and inserting ‘‘2007’’. years beginning after December 31, 2007. substantial risk of forfeiture until the date (b) EFFECTIVE DATE.—The amendments TITLE II—REVENUE PROVISIONS of such disposition. made by this section shall apply to taxable Subtitle A—Nonqualified Deferred Com- ‘‘(ii) INVESTMENT ASSET.—For purposes of years beginning after December 31, 2006. pensation From Certain Tax Indifferent clause (i), the term ‘investment asset’ means SEC. 102. EXTENSION OF INCREASED ALTER- Parties any single asset (other than an investment NATIVE MINIMUM TAX EXEMPTION fund or similar entity)— AMOUNT. SEC. 201. NONQUALIFIED DEFERRED COMPENSA- TION FROM CERTAIN TAX INDIF- ‘‘(I) acquired directly by an investment (a) IN GENERAL.—Paragraph (1) of section FERENT PARTIES. fund or similar entity, 55(d) (relating to exemption amount) is (a) IN GENERAL.—Subpart B of part II of ‘‘(II) with respect to which such entity amended— subchapter E of chapter 1 (relating to tax- does not (nor does any person related to such (1) by striking ‘‘($62,550 in the case of tax- able year for which items of gross income in- entity) participate in the active manage- able years beginning in 2006)’’ in subpara- cluded) is amended by inserting after section ment of such asset (or if such asset is an in- graph (A) and inserting ‘‘($66,250 in the case 457 the following new section: terest in an entity, in the active manage- of taxable years beginning in 2007)’’, and ‘‘SEC. 457A. NONQUALIFIED DEFERRED COM- ment of the activities of such entity), and (2) by striking ‘‘($42,500 in the case of tax- PENSATION FROM CERTAIN TAX IN- ‘‘(III) substantially all of any gain on the able years beginning in 2006)’’ in subpara- DIFFERENT PARTIES. disposition of which (other than such de- graph (B) and inserting ‘‘($44,350 in the case ‘‘(a) IN GENERAL.—Any compensation ferred compensation) is allocated to inves- of taxable years beginning in 2007)’’. which is deferred under a nonqualified de- tors in such entity. (b) EFFECTIVE DATE.—The amendments ferred compensation plan of a nonqualified ‘‘(iii) COORDINATION WITH SPECIAL RULE FOR made by this section shall apply to taxable entity shall be taken into account for pur- SHORT-TERM DEFERRALS OF COMPENSATION.— years beginning after December 31, 2006. poses of this chapter when there is no sub- Paragraph (3)(B) shall not apply to any com- stantial risk of forfeiture of the rights to SEC. 103. INCREASE OF AMT REFUNDABLE CRED- pensation to which clause (i) applies. IT AMOUNT FOR INDIVIDUALS WITH such compensation. ‘‘(2) COMPREHENSIVE FOREIGN INCOME TAX.— LONG-TERM UNUSED CREDITS FOR ‘‘(b) NONQUALIFIED ENTITY.—For purposes PRIOR YEAR MINIMUM TAX LIABIL- of this section, the term ‘nonqualified enti- The term ‘comprehensive foreign income ITY, ETC. ty’ means— tax’ means, with respect to any foreign per- (a) IN GENERAL.—Paragraph (2) of section ‘‘(1) any foreign corporation unless sub- son, the income tax of a foreign country if— 53(e) is amended to read as follows: stantially all of its income is— ‘‘(A) such person is eligible for the benefits ‘‘(2) AMT REFUNDABLE CREDIT AMOUNT.— ‘‘(A) effectively connected with the con- of a comprehensive income tax treaty be- For purposes of paragraph (1), the term duct of a trade or business in the United tween such foreign country and the United ‘AMT refundable credit amount’ means, with States, or States, or respect to any taxable year, the amount (not ‘‘(B) subject to a comprehensive foreign in- ‘‘(B) such person demonstrates to the satis- in excess of the long-term unused minimum come tax, and faction of the Secretary that such foreign tax credit for such taxable year) equal to the ‘‘(2) any partnership unless substantially country has a comprehensive income tax. greater of— all of its income is allocated to persons other Such term shall not include any tax unless ‘‘(A) 50 percent of the long-term unused than— such tax includes rules for the deductibility minimum tax credit for such taxable year, or ‘‘(A) foreign persons with respect to whom of deferred compensation which are similar ‘‘(B) the amount (if any) of the AMT re- such income is not subject to a comprehen- to the rules of this title. fundable credit amount determined under sive foreign income tax, and ‘‘(3) NONQUALIFIED DEFERRED COMPENSATION this paragraph for the taxpayer’s preceding ‘‘(B) organizations which are exempt from PLAN.— taxable year.’’. tax under this title. ‘‘(A) IN GENERAL.—The term ‘nonqualified (b) TREATMENT OF CERTAIN UNDERPAY- ‘‘(c) ASCERTAINABILITY OF AMOUNTS OF deferred compensation plan’ has the meaning MENTS, INTEREST, AND PENALTIES ATTRIB- COMPENSATION.— given such term under section 409A(d), ex- UTABLE TO THE TREATMENT OF INCENTIVE ‘‘(1) IN GENERAL.—If the amount of any cept that such term shall include any plan STOCK OPTIONS.—Section 53 is amended by compensation is not ascertainable at the that provides a right to compensation based adding at the end the following new sub- time that such compensation is otherwise to on the appreciation in value of a specified section: be taken into account under subsection (a)— number of equity units of the service recipi- ‘‘(f) TREATMENT OF CERTAIN UNDERPAY- ‘‘(A) such amount shall be so taken into ent. MENTS, INTEREST, AND PENALTIES ATTRIB- account when ascertainable, and ‘‘(B) EXCEPTION FOR SHORT-TERM DEFER- UTABLE TO THE TREATMENT OF INCENTIVE ‘‘(B) the tax imposed under this chapter for RALS.—Compensation shall not be treated as STOCK OPTIONS.— the taxable year in which such compensation deferred for purposes of this section if the ‘‘(1) ABATEMENT.—Any underpayment of is taken into account under subparagraph service provider receives payment of such tax outstanding on the date of the enact- (A) shall be increased by the sum of— compensation not later than 12 months after

VerDate Aug 31 2005 04:29 Dec 13, 2007 Jkt 069060 PO 00000 Frm 00051 Fmt 7634 Sfmt 0634 E:\CR\FM\A12DE7.044 H12DEPT1 bajohnson on PROD1PC71 with HOUSE H15370 CONGRESSIONAL RECORD — HOUSE December 12, 2007 the end of the taxable year of the service re- distribution under such arrangement to the is relevant to a transaction shall be made in cipient during which the right to the pay- date amounts are required to be included in the same manner as if this subsection had ment of such compensation is no longer sub- the income of such taxpayer under this sub- never been enacted. ject to a substantial risk of forfeiture. section. ‘‘(6) REGULATIONS.—The Secretary shall ‘‘(4) EXCEPTION FOR CERTAIN COMPENSATION (5) ACCELERATED PAYMENT NOT TREATED AS prescribe such regulations as may be nec- WITH RESPECT TO EFFECTIVELY CONNECTED IN- MATERIAL MODIFICATION.—Any amendment to essary or appropriate to carry out the pur- COME.—In the case a foreign corporation with a nonqualified deferred compensation ar- poses of this subsection. Such regulations income which is taxable under section 882, rangement made pursuant to paragraph (3) may include exemptions from the applica- this section shall not apply to compensation or (4) shall not be treated as a material tion of this subsection.’’. which, had such compensation had been paid modification of the arrangement for pur- (b) EFFECTIVE DATE.—The amendments in cash on the date that such compensation poses of section 409A of the Internal Revenue made by this section shall apply to trans- ceased to be subject to a substantial risk of Code of 1986. actions entered into after the date of the en- actment of this Act. forfeiture, would have been deductible by Subtitle B—Codification of Economic such foreign corporation against such in- Substance Doctrine SEC. 212. PENALTIES FOR UNDERPAYMENTS. come. (a) PENALTY FOR UNDERPAYMENTS ATTRIB- SEC. 211. CODIFICATION OF ECONOMIC SUB- UTABLE TO TRANSACTIONS LACKING ECONOMIC ‘‘(5) APPLICATION OF RULES.—Rules similar STANCE DOCTRINE. SUBSTANCE.— to the rules of paragraphs (5) and (6) of sec- (a) IN GENERAL.—Section 7701 is amended (1) IN GENERAL.—Subsection (b) of section tion 409A(d) shall apply. by redesignating subsection (p) as subsection ‘‘(e) REGULATIONS.—The Secretary shall 6662 is amended by inserting after paragraph (q) and by inserting after subsection (o) the (5) the following new paragraph: prescribe such regulations as may be nec- following new subsection: essary or appropriate to carry out the pur- ‘‘(6) Any disallowance of claimed tax bene- ‘‘(p) CLARIFICATION OF ECONOMIC SUBSTANCE fits by reason of a transaction lacking eco- poses of this section, including regulations DOCTRINE.— disregarding a substantial risk of forfeiture nomic substance (within the meaning of sec- ‘‘(1) APPLICATION OF DOCTRINE.—In the case tion 7701(p)) or failing to meet the require- in cases where necessary to carry out the of any transaction to which the economic purposes of this section.’’. ments of any similar rule of law.’’. substance doctrine is relevant, such trans- (2) INCREASED PENALTY FOR NONDISCLOSED (b) CONFORMING AMENDMENT.—Section action shall be treated as having economic 26(b)(2) is amended by striking ‘‘and’’ at the TRANSACTIONS.—Section 6662 is amended by substance only if— adding at the end the following new sub- end of subparagraph (S), by striking the pe- ‘‘(A) the transaction changes in a meaning- riod at the end of subparagraph (T) and in- section: ful way (apart from Federal income tax ef- ‘‘(i) INCREASE IN PENALTY IN CASE OF NON- serting ‘‘, and’’, and by adding at the end the fects) the taxpayer’s economic position, and following new subparagraph: DISCLOSED NONECONOMIC SUBSTANCE TRANS- ‘‘(B) the taxpayer has a substantial pur- ACTIONS.— ‘‘(U) section 457A(c)(1)(B) (relating to as- pose (apart from Federal income tax effects) ‘‘(1) IN GENERAL.—To the extent that a por- certainability of amounts of compensa- for entering into such transaction. tion of the underpayment to which this sec- tion).’’. ‘‘(2) SPECIAL RULE WHERE TAXPAYER RELIES tion applies is attributable to one or more (c) CLERICAL AMENDMENT.—The table of ON PROFIT POTENTIAL.— sections of subpart B of part II of subchapter nondisclosed noneconomic substance trans- ‘‘(A) IN GENERAL.—The potential for profit E of chapter 1 is amended by inserting after actions, subsection (a) shall be applied with of a transaction shall be taken into account respect to such portion by substituting ‘40 the item relating to section 457 the following in determining whether the requirements of new item: percent’ for ‘20 percent’. subparagraphs (A) and (B) of paragraph (1) ‘‘(2) NONDISCLOSED NONECONOMIC SUBSTANCE ‘‘Sec. 457A. Nonqualified deferred compensa- are met with respect to the transaction only TRANSACTIONS.—For purposes of this sub- tion from certain tax indif- if the present value of the reasonably ex- section, the term ‘nondisclosed noneconomic ferent parties.’’. pected pre-tax profit from the transaction is substance transaction’ means any portion of (d) EFFECTIVE DATE.— substantial in relation to the present value a transaction described in subsection (b)(6) (1) IN GENERAL.—Except as otherwise pro- of the expected net tax benefits that would with respect to which the relevant facts af- vided in this subsection, the amendments be allowed if the transaction were respected. fecting the tax treatment are not adequately made by this section shall apply to amounts ‘‘(B) TREATMENT OF FEES AND FOREIGN disclosed in the return nor in a statement at- deferred which are attributable to services TAXES.—Fees and other transaction expenses tached to the return. performed after December 31, 2007. and foreign taxes shall be taken into account ‘‘(3) SPECIAL RULE FOR AMENDED RETURNS.— (2) APPLICATION TO EXISTING DEFERRALS.— as expenses in determining pre-tax profit Except as provided in regulations, in no In the case of any amount deferred to which under subparagraph (A). event shall any amendment or supplement to the amendments made by this section do not ‘‘(3) STATE AND LOCAL TAX BENEFITS.—For a return of tax be taken into account for apply solely by reason of the fact that the purposes of paragraph (1), any State or local purposes of this subsection if the amendment amount is attributable to services performed income tax effect which is related to a Fed- or supplement is filed after the earlier of the before January 1, 2008, to the extent such eral income tax effect shall be treated in the date the taxpayer is first contacted by the amount is not includible in gross income in same manner as a Federal income tax effect. Secretary regarding the examination of the a taxable year beginning before 2017, such ‘‘(4) FINANCIAL ACCOUNTING BENEFITS.—For return or such other date as is specified by amounts shall be includible in gross income purposes of paragraph (1)(B), achieving a fi- the Secretary.’’. in the later of— nancial accounting benefit shall not be (3) CONFORMING AMENDMENT.—Subpara- (A) the last taxable year beginning before taken into account as a purpose for entering graph (B) of section 6662A(e)(2) is amended— 2017, or into a transaction if such transaction results (A) by striking ‘‘section 6662(h)’’ and in- (B) the taxable year in which there is no in a Federal income tax benefit. serting ‘‘subsection (h) or (i) of section 6662’’, substantial risk of forfeiture of the rights to ‘‘(5) DEFINITIONS AND SPECIAL RULES.—For and such compensation (determined in the same purposes of this subsection— (B) by striking ‘‘GROSS VALUATION manner as determined for purposes of section ‘‘(A) ECONOMIC SUBSTANCE DOCTRINE.—The MISSTATEMENT PENALTY’’ in the heading and 457A of the Internal Revenue Code of 1986, as term ‘economic substance doctrine’ means inserting ‘‘CERTAIN INCREASED UNDER- added by this section). the common law doctrine under which tax PAYMENT PENALTIES’’. (3) ACCELERATED PAYMENTS.—No later than benefits under subtitle A with respect to a (b) REASONABLE CAUSE EXCEPTION NOT AP- 60 days after the date of the enactment of transaction are not allowable if the trans- PLICABLE TO NONECONOMIC SUBSTANCE TRANS- this Act, the Secretary shall issue guidance action does not have economic substance or ACTIONS, TAX SHELTERS, AND CERTAIN LARGE providing a limited period of time during lacks a business purpose. CORPORATIONS.—Subsection (c) of section which a nonqualified deferred compensation ‘‘(B) EXCEPTION FOR PERSONAL TRANS- 6664 is amended— arrangement attributable to services per- ACTIONS OF INDIVIDUALS.—In the case of an (1) by redesignating paragraphs (2) and (3) formed on or before December 31, 2007, may, individual, paragraph (1) shall apply only to as paragraphs (3) and (4), respectively, without violating the requirements of sec- transactions entered into in connection with (2) by striking ‘‘paragraph (2)’’ in para- tion 409A(a) of the Internal Revenue Code of a trade or business or an activity engaged in graph (4), as so redesignated, and inserting 1986, be amended to conform the date of dis- for the production of income. ‘‘paragraph (3)’’, and tribution to the date the amounts are re- ‘‘(C) OTHER COMMON LAW DOCTRINES NOT AF- (3) by inserting after paragraph (1) the fol- quired to be included in income. FECTED.—Except as specifically provided in lowing new paragraph: (4) CERTAIN BACK-TO-BACK ARRANGEMENTS.— this subsection, the provisions of this sub- ‘‘(2) EXCEPTION FOR NONECONOMIC SUB- If the taxpayer is also a service recipient and section shall not be construed as altering or STANCE TRANSACTIONS, TAX SHELTERS, AND maintains one or more nonqualified deferred supplanting any other rule of law, and the CERTAIN LARGE CORPORATIONS.—Paragraph (1) compensation arrangements for its service requirements of this subsection shall be con- shall not apply— providers under which any amount is attrib- strued as being in addition to any such other ‘‘(A) to any portion of an underpayment utable to services performed on or before De- rule of law. which is attributable to one or more tax cember 31, 2007, the guidance issued under ‘‘(D) DETERMINATION OF APPLICATION OF shelters (as defined in section 6662(d)(2)(C)) paragraph (3) shall permit such arrange- DOCTRINE NOT AFFECTED.—The determination or transactions described in section ments to be amended to conform the dates of of whether the economic substance doctrine 6662(b)(6), and

VerDate Aug 31 2005 04:29 Dec 13, 2007 Jkt 069060 PO 00000 Frm 00052 Fmt 7634 Sfmt 0634 E:\CR\FM\A12DE7.044 H12DEPT1 bajohnson on PROD1PC71 with HOUSE December 12, 2007 CONGRESSIONAL RECORD — HOUSE H15371 ‘‘(B) to any taxpayer if such taxpayer is a willful failure to file return, supply informa- ward of some 25 million people from specified large corporation (as defined in sec- tion, or pay tax), if any S corporation re- being hit by a $50 billion tax increase, tion 6662(d)(2)(D)(ii)).’’. quired to file a return under section 6037 for which it was never thought could hap- (c) APPLICATION OF PENALTY FOR ERRO- any taxable year— pen to these people. NEOUS CLAIM FOR REFUND OR CREDIT TO NON- ‘‘(1) fails to file such return at the time ECONOMIC SUBSTANCE TRANSACTIONS.—Sec- prescribed therefor (determined with regard b 1700 tion 6676 is amended by redesignating sub- to any extension of time for filing), or By the same token, almost separate section (c) as subsection (d) and inserting ‘‘(2) files a return which fails to show the and apart from this, we have an oppor- after subsection (b) the following new sub- information required under section 6037, tunity to close a very unfair provision section: such S corporation shall be liable for a pen- ‘‘(c) NONECONOMIC SUBSTANCE TRANS- that we find in our Tax Code, that cer- alty determined under subsection (b) for tainly no one has come to me to de- ACTIONS TREATED AS LACKING REASONABLE each month (or fraction thereof) during BASIS.—For purposes of this section, any ex- which such failure continues (but not to ex- fend, which prevents a handful of peo- cessive amount which is attributable to any ceed 12 months), unless it is shown that such ple from having unlimited funds being transaction described in section 6662(b)(6) failure is due to reasonable cause. shipped overseas under deferred com- shall not be treated as having a reasonable ‘‘(b) AMOUNT PER MONTH.—For purposes of pensation and escaping liability. It is basis.’’. subsection (a), the amount determined under just plain wrong if we were talking (d) SPECIAL UNDERSTATEMENT REDUCTION this subsection for any month is the product about this by itself. But we are not RULE FOR CERTAIN LARGE CORPORATIONS.— of— doing that. We are talking about bring- (1) IN GENERAL.—Paragraph (2) of section ‘‘(1) $100, multiplied by ing something together that I don’t see 6662(d) is amended by adding at the end the ‘‘(2) the number of persons who were share- following new subparagraph: how anyone can be opposed. holders in the S corporation during any part So let’s talk about the things that we ‘‘(D) SPECIAL REDUCTION RULE FOR CERTAIN of the taxable year. all agree on. Nobody, Republican or LARGE CORPORATIONS.— ‘‘(c) ASSESSMENT OF PENALTY.—The pen- ‘‘(i) IN GENERAL.—In the case of any speci- alty imposed by subsection (a) shall be as- Democrat, liberal or conservative, be- fied large corporation— sessed against the S corporation. lieves that these taxpayers should be ‘‘(I) subparagraph (B) shall not apply, and ‘‘(d) DEFICIENCY PROCEDURES NOT TO hit by a tax that we didn’t intend. ‘‘(II) the amount of the understatement APPLY.—Subchapter B of chapter 63 (relating Two, no one has the guts to defend under subparagraph (A) shall be reduced by to deficiency procedures for income, estate, the offshore deferred compensation. that portion of the understatement which is gift, and certain excise taxes) shall not apply You may have some feelings about it attributable to any item with respect to in respect of the assessment or collection of because of a couple of friends, but we which the taxpayer has a reasonable belief any penalty imposed by subsection (a).’’. know it’s indecent and immoral. that the tax treatment of such item by the (b) CLERICAL AMENDMENT.—The table of taxpayer is more likely than not the proper So what is the problem? We raise the sections for part I of subchapter B of chapter money and we hope that, through this tax treatment of such item. 68 is amended by adding at the end the fol- ‘‘(ii) SPECIFIED LARGE CORPORATION.— lowing new item: and others, we will be able to pay for ‘‘(I) IN GENERAL.—For purposes of this sub- the loss of revenue that is enacted by ‘‘Sec. 6699A. Failure to file S corporation re- paragraph, the term ‘specified large corpora- the patch. That is the $50 billion. I turn.’’. tion’ means any corporation with gross re- wish that I could yield all of our time ceipts in excess of $100,000,000 for the taxable (c) EFFECTIVE DATE.—The amendments to the Republicans to explain once made by this section shall apply to returns year involved. again, as eloquent as my dear friend ‘‘(II) AGGREGATION RULE.—All persons required to be filed after the date of the en- Mr. MCCRERY is, as to why this is not treated as a single employer under section actment of this Act. 52(a) shall be treated as one person for pur- SEC. 224. INCREASE IN MINIMUM PENALTY ON borrowing. poses of subclause (I).’’. FAILURE TO FILE A RETURN OF TAX. Mr. DREIER yesterday in the Rules (2) CONFORMING AMENDMENT.—Subpara- (a) IN GENERAL.—Subsection (a) of section Committee says it’s not borrowing be- graph (C) of section 6662(d)(2) is amended by 6651 is amended by striking ‘‘$100’’ in the last cause we never intended for this to striking ‘‘Subparagraph (B)’’ and inserting sentence and inserting ‘‘$150’’. happen. Well, if it works for you guys, ‘‘Subparagraphs (B) and (D)(i)(II)’’. (b) EFFECTIVE DATE.—The amendment I’m going to try it when I get home (e) EFFECTIVE DATE.—The amendments made by this section shall apply to returns with my creditors and say, hey, it made by this section shall apply to taxable the due date for the filing of which (includ- wasn’t meant for me to be broke and so years beginning after the date of the enact- ing extensions) is after December 31, 2007. it’s not borrowing; just ignore it. ment of this Act. SEC. 225. TIME FOR PAYMENT OF CORPORATE ES- But it doesn’t work that way on pen- Subtitle C—Other Provisions TIMATED TAXES. cil and paper. Either you have got to The percentage under subparagraph (B) of SEC. 221. DELAY IN APPLICATION OF WORLD- cut programs by $50 billion, raise the section 401(1) of the Tax Increase Prevention WIDE ALLOCATION OF INTEREST. revenue by $50 billion, or mumble for (a) IN GENERAL.—Paragraphs (5)(D) and (6) and Reconciliation Act of 2005 in effect on the date of the enactment of this Act is in- $50 billion. Enough of the mumbling. of section 864(f) are each amended by strik- Can’t we unite on this, and at least let ing ‘‘December 31, 2008’’ and inserting ‘‘De- creased by 52.5 percentage points. cember 31, 2017’’. The SPEAKER pro tempore. Pursu- them know in the Senate that the House of Representatives is the House (b) EFFECTIVE DATE.—The amendments ant to House Resolution 861, the gen- of the People, that we believe in what made by this section shall apply to taxable tleman from New York (Mr. RANGEL) we’re doing? And let’s remember this; years beginning after December 31, 2008. and the gentleman from Louisiana (Mr. that we know the President, when he is SEC. 222. MODIFICATION OF PENALTY FOR FAIL- MCCRERY) each will control 30 minutes. URE TO FILE PARTNERSHIP RE- closing things that he wants to be The Chair recognizes the gentleman TURNS. closed on to raise revenue, it’s not a from New York. (a) EXTENSION OF TIME LIMITATION.—Sub- tax increase. He and Secretary Paulson section (a) of section 6698 (relating to general Mr. RANGEL. Mr. Speaker, after my call it, what, a loophole closing. That’s rule) is amended by striking ‘‘5 months’’ and speaking, I ask unanimous consent inserting ‘‘12 months’’. all we’re trying to do in paying for that the balance of my time be con- this. (b) INCREASE IN PENALTY AMOUNT.—Para- trolled by the gentleman from Massa- graph (1) of section 6698(b) is amended by And so, remember, the President chusetts (Mr. NEAL), and that he be al- striking ‘‘$50’’ and inserting ‘‘$100’’. won’t be with you in November, but I (c) EFFECTIVE DATE.—The amendments lowed to assign it to speakers on behalf will be, trying to help all of us to un- made by this section shall apply to returns of the bill. derstand that we did the best we could required to be filed after the date of the en- The SPEAKER pro tempore. Is there for the Congress and for the country. actment of this Act. objection to the request of the gen- So we are giving the other body an- SEC. 223. PENALTY FOR FAILURE TO FILE S COR- tleman from New York? other opportunity. Hopefully this time PORATION RETURNS. There was no objection. they will not be irresponsible but they (a) IN GENERAL.—Part I of subchapter B of Mr. RANGEL. Mr. Speaker, I yield will join with us in doing two things: chapter 68 (relating to assessable penalties) myself such time as I may consume. is amended by adding at the end the fol- Reform the system for a provision that lowing new section: I am so proud to have the oppor- only benefits a handful of people at the tunity to say once again that fulfilling ‘‘SEC. 6699A. FAILURE TO FILE S CORPORATION expense of the United States Treasurer; RETURN. our constitutional responsibility, the and, two, prevent this burden from fall- ‘‘(a) GENERAL RULE.—In addition to the Ways and Means Committee has re- ing on 25 million innocent, hard- penalty imposed by section 7203 (relating to ported out a bill to provide relief to up- working American people.

VerDate Aug 31 2005 04:34 Dec 13, 2007 Jkt 069060 PO 00000 Frm 00053 Fmt 7634 Sfmt 0634 E:\CR\FM\A12DE7.044 H12DEPT1 bajohnson on PROD1PC71 with HOUSE H15372 CONGRESSIONAL RECORD — HOUSE December 12, 2007 At this time I would like to yield the ferral from any taxation on their com- fore us today. In fact, the distinguished balance of my time to Chairman RICH- pensation. We have all seen the news majority leader of the Senate is so in- ARD NEAL. reports of these hedge fund people de- tent on not paying for the AMT that he The SPEAKER pro tempore. Without ferring hundreds of millions of dollars is refusing to send the bill to the House objection, the gentleman from Massa- in compensation offshore because of a right now so as not to give the major- chusetts will control the balance of the tax loophole. This bill closes that loop- ity here another opportunity to load it time. hole, and it gives tax relief to 23 mil- up with doomed tax increases. Yet our There was no objection. lion families. friends on the majority are once again Mr. NEAL of Massachusetts. Mr. The bill also provides that a cor- pulling on their helmets and fastening Speaker, I yield myself such time as I porate tax shelter abuser be subject to their chin straps, ready to run into the might consume. new rules requiring economic sub- brick wall of using tax hikes to prevent I rise in support of the AMT Relief stance in transactions. Let me inter- other tax increases. The whole thing Act of 2007. We are here again in an ef- pret. It has to be for real. By cracking would be comical if the implications fort to protect 23 million American down on tax shelter abusers, we are were not so serious. taxpayers from higher taxes on April able to provide tax relief to the fami- In recent weeks, the Treasury Sec- 15. Almost 19 million of those tax- lies of 13 million children in minimum retary, the Acting Commissioner of the payers have never paid AMT before, wage households who get little or no IRS, and the chairman of the IRS over- and some indeed have not even heard of refundable child tax credits. sight board have all written to Con- AMT. With this bill, we can ensure The bill is simple. The bill is gress to urge prompt action on the that it stays that way. straightforward. Despite some opposi- AMT and warned that continued delay My district alone will see an increase tion, we are going to persevere in our on the patch will result in delayed re- from 7,300 families hit by AMT to 67,000 path to responsible tax cuts. Eccle- people hit by AMT. We have individ- funds, confusion, and higher costs to siastes teaches us that the race is not uals across this country, including the Treasury. In a recent letter, Sec- always to the swift nor the battle to Maggie Rauh from my district who is a retary Paulson cautioned that ‘‘enact- the strong. That does not affect our CPA and who testified that her family ment of a patch in mid to late Decem- conviction here that we intend to per- income is at $75,000. She takes the ber could delay issuance of approxi- standard deduction. They have three severe on the right path. We stand by mately $75 billion in refunds to tax- children. She is going to pay AMT. our pledge to the American taxpayer payers who are likely to file their re- That family trip to Disneyland next and hope to convince others to join our turns before March 31, 2008. Millions of year is on hold. battle today. taxpayers filing returns after that date Joel Campbell of Loudoun County, Mr. Speaker, I reserve the balance of may also have their refunds delayed.’’ Virginia told the committee that his my time. Well, here we are now in mid-December family had to choose between saving Mr. MCCRERY. Mr. Speaker, I yield and, unfortunately, the majority in the more for retirement or paying for col- myself such time as I may consume. House continues to play a dangerous Mr. Speaker, I rise in strong opposi- lege. Higher taxes because of AMT are game of chicken with the American tion to the bill before us today, just as forcing middle- and upper middle-in- taxpayer and the clock is winding I did the last time this bill was on the come families to make these difficult down. choices. floor. It is not exactly the same, but When the House debated H.R. 3996 So we all agree that AMT should not basically it is a bill that would patch, last month, Republicans argued be affecting these working families, so to speak, the AMT, and then in- against applying PAYGO to the AMT but we cannot agree on how to do it. crease other taxes to the same amount patch. We pointed out that if Congress And that is the point: Everybody as the baseline says the patch costs. has to increase taxes to prevent a tax agrees that it has got to be fixed. The Let me make one thing clear. Repub- increase, then the majority’s baseline Republicans propose to borrow $50 bil- licans are for patching the AMT, a 1- has baked in trillions of dollars of tax lion; we intend to proceed with paying year patch on the AMT. We are for, in increases over the next decade as the for this issue. When I hear the argu- other words, freezing the AMT in place 2001 and 2003 tax cuts reach their cur- ment that we should forget about it be- just as it is today or just as it was for rent expiration dates at the end of 2010. cause it was never intended to hit mid- the last tax year. Where we differ with The majority’s logic seems to go like dle-income people, as Mr. RANGEL the majority, at least so far, is over the this: To prevent a tax increase, we noted, I would like to try that on my question of whether we need to, quote, must enact a tax increase. Either way creditors. pay for the patch by raising other it’s a tax increase, unless you do as The Republicans believe that we taxes. We have had this debate before we’re suggesting, which is to prevent should not offset this tax increase for on this floor. We know where this de- the tax increase by just patching and middle-income people. Indeed, the bate is headed. freezing the AMT in place as we did President’s budgets for the last few The President’s budget, by the way, last year and the year before. years have all counted on this revenue, includes a 1-year patch on the AMT The House Democrats’ version of and he projects next year precisely the without a pay-for. So that should be PAYGO forces Congress to decide same thing. made clear to everyone, and that is whether we will let those tax increases We made a pledge earlier this year to what we have been proposing for quite take place or replace them with other the American taxpayer that we would some time. That is what the Senate tax hikes. But no matter how Congress do no harm to the Federal budget. So if passed by a rather large vote very re- chooses to raise taxes, if we follow we lower tax revenues, we have to cently. In fact, 88–5 I believe was the that, we will face the largest tax in- make up for that loss and not add to vote that the Senate passed a 1-year crease in American history both in the deficit. That PAYGO pledge is dif- patch without tax increases. I applaud nominal and real terms. Moreover, in ficult and painful, but most sensible. that action of the Senate. It does what many ways PAYGO has shown itself to The bill that we bring before the the chairman of the Ways and Means be a farce. House today is a smaller package than Committee and I as the ranking mem- In January, when the new majority before. The expiring provisions and the ber of the Ways and Means Committee, instituted PAYGO, the Congressional carried interest revenue raisers are and the chairman and ranking member Budget Office estimated that revenues gone. In the face of opposition to our of the Senate Finance Committee in fiscal year 2007 would total $2.542 offsets, we cannot retain this package wrote in a letter to the President sev- trillion. Actual revenues for 2007 because of the expiring tax provisions. eral weeks ago saying that we prom- turned out to be $26 billion higher than It is my hope that we can turn to these ised to pass a 1-year patch on the AMT that. Does the majority plan to return provisions again in the near future and in a manner that the President would these excess receipts to the taxpayer? perhaps, if necessary, make them ret- sign. The Senate bill represents that No. It’s just soaked up by more spend- roactive, indeed. promise. This President has said he ing. This bill provides that offshore hedge will sign that bill. The President has Similarly, in January of 2007, the fund managers not enjoy unlimited de- said he won’t sign the bill that is be- CBO estimated that revenues in fiscal

VerDate Aug 31 2005 04:34 Dec 13, 2007 Jkt 069060 PO 00000 Frm 00054 Fmt 7634 Sfmt 0634 E:\CR\FM\K12DE7.107 H12DEPT1 bajohnson on PROD1PC71 with HOUSE December 12, 2007 CONGRESSIONAL RECORD — HOUSE H15373 year 2008 would be $2.72 trillion but re- to increase taxes. Hello? He said, of the debate my colleagues will make cently revised that figure upwards by Hello? Hello, Mr. MCCRERY; yes, we are that clear. I thank you. just over $50 billion, almost exactly the going to give tax relief to 23 million We have had many proud days in this same amount that this ‘‘AMT’’ costs. Americans, 23 million Americans, and Congress, when we passed SCHIP, the Does the majority plan to return this approximately 5,000 to 10,000 Americans health insurance for 10 million Amer- money to the taxpayers, or maybe even will be paying the tab. And they will be ican children, when we passed many credit that against the higher revenues paying the tab because this legislation pieces of legislation that related to our envisioned by the baseline? No. How closes a loophole. We are closing a children, their health and education about crediting it to the AMT patch? loophole. and the economic security of their No. They are going to pay for it all These hedge fund CEOs who have families, the environment in which over again. taken their profits offshore to avoid they live, a world at peace in which b 1715 taxes, this is called tax evasion, and they can survive, but none of them has this loophole closes that. So yes, tax been as proud a day for me as when the As Monday’s Wall Street Journal edi- relief for 23 million families, 10,000 or Democrats stood tall for the middle torial points out, ‘‘PAYGO has been fewer people paying the price. class giving them tax relief, having it nothing but a confidence game from What is the alternative? As Mr. NEAL paid for so that those little children do the very start. PAYGO doesn’t apply to mentioned, to borrow. Happily, my col- not have to inherit the debt. domestic discretionary spending. It leagues, for those of you who may not Once again, let’s make this the chil- doesn’t restrain spending increases know, I got my seventh grandchild this dren’s Congress and vote for this im- under current law in entitlements like weekend. And as it is with grand- portant legislation. Medicare and Medicaid. Its main goals children, you always think of the world Mr. MCCRERY. Mr. Speaker, I yield are to make tax cutting all but impos- in which they will live and what we are 11⁄2 minutes to the distinguished gen- sible while letting Democrats pretend doing, the fiscal soundness, in the tleman from California (Mr. HERGER), to favor fiscal discipline. The 2003 tax country in which they will live. the ranking member of the Trade Sub- cuts expire in 2010 and PAYGO will So what we are saying to this new- committee of the Ways and Means make them all but impossible to ex- born baby, we have a choice here to- Committee. tend.’’ night. We can either close the loophole Mr. HERGER. Mr. Speaker, this bill The President and the Senate have of tax evasion for the wealthiest people is the wrong policy for tax-paying fam- made clear that they do not intend to in America in order to give tax relief to ilies. PAYGO budgeting has put Con- raise taxes to prevent a tax increase. 23 million families in America, 5,000 to gress in a straitjacket even on this The bill we are considering today only 10,000 get an increase, 23 million get temporary fix to the alternative min- further delays final resolution of this tax relief, or we can say to the little imum tax which was never intended to issue, increasing cost to the treasury baby and all little babies born across ensnare 23 million middle-income and increasing confusion for taxpayers America and all their children, you are workers. and the IRS. I urge defeat of this bill. Mr. Speaker, I reserve the balance of going to pay the tab because this In reality, PAYGO fails to rein in my time. money will be borrowed, probably from out-of-control spending and results in Mr. NEAL of Massachusetts. Mr. a foreign government, possibly from permanent tax increases making tax Speaker, let me clarify what the gen- China, $50 billion. Fifty billion dollars. relief next to impossible. tleman just said. He came the same Put that on your tab, little baby, be- The other body agrees, going so far day that I did. He is one of the better cause you are going to be paying that as to call this nonoffset AMT patch the Members to serve here, and I person- price for a long time. ‘‘Tax Increase Prevention Act.’’ Insist- ally and professionally am going to So it is either the American tax- ing on PAYGO brings us down the path miss him. payer, future generations, suffering if of massive tax increases over the next Let me clear up what he just said. He we go the Republican route, or it will decade. We need to stop this PAYGO said let’s borrow the money to pay for be fairness, fairness, a new principle in charade and pass AMT relief without this issue. We are saying let’s pay the tax policy in our country. The choice is burdensome new taxes on the American bill now. clear. We choose tax relief for 23 mil- people. Mr. Speaker, with that, I would like lion families with 10,000 or fewer people Mr. NEAL of Massachusetts. Mr. to introduce the Speaker of the House paying the tab. The wealthiest people, Speaker, there are only two ways to re- of Representatives for a long 1 minute. producing billions of dollars, billions of spond: Either you borrow the money or Ms. PELOSI. Mr. Speaker, I thank dollars once their loopholes are closed you ask people who are hiding money the distinguished gentleman, Mr. NEAL, in order to foot the bill or passing this in offshore accounts to pay for it, and chairman of the subcommittee for on to our children. that is what we are doing. People who yielding and also for his great leader- I wonder if our colleagues would be are hiding money in island commu- ship on issues that regard strength- willing, when we talk about AMT, the nities are being asked to give tax relief ening the middle class and growing the alternative minimum tax and paying to 23 million people. middle class in our country. for it, or any other issue when we try And with that, I yield to the gen- I also want to associate myself with to pay for it, if they would be inter- tleman from Michigan (Mr. LEVIN), the the remarks of Mr. NEAL when he ex- ested when they suggest that we not chairman of the Trade Subcommittee tended his compliments to Mr. pay for it, if they would be willing in of Ways and Means. MCCRERY. He is a wonderful Member of the same vote to vote to increase the (Mr. LEVIN asked and was given per- Congress, and I am sorry to hear of his debt ceiling, because that is exactly mission to revise and extend his re- announced retirement. He will be what you are proposing. Let us not pay marks.) missed here. for this. Let us increase the national Mr. LEVIN. Mr. Speaker, I have been I listened attentively to Mr. debt in order to give comfort to people listening, as I hope everybody has, and MCCRERY’s comments and want to who are evading their taxes by going I think the comments from the minor- speak to them because I think they offshore to the tune of billions of dol- ity are the height of fiscal irrespon- pose the question that this House has lars. sibility and fiscal irrationality. Both. to decide upon this evening very clear- So I think what the Ways and Means You simply say because it was unin- ly. Mr. RANGEL and Mr. NEAL have Committee has done is masterful. It is tended. But no, in 2002 and 2001 when given us the opportunity here tonight a mystery to me why it isn’t bipar- you passed the tax bill, you knew that to send a clear message to the Amer- tisan, and I hope that the bright light the AMT was going to take away some ican people that the leverage in this that we can shine on it tonight of fair- of the effect. You knew that. You’ve country has changed to the middle ness will encourage the Senate to sup- known all along that this was coming class now instead of protecting the as- port this legislation. down the track. And essentially what sets of the top 1 percent in our country. Not to pay for the AMT middle-class you said was borrow, borrow, borrow. Mr. MCCRERY says to give a tax cut, tax relief is really a hoax on the Amer- And now you are carrying that to a to prevent a tax increase we are going ican people. I know that in the course ridiculous extreme by saying don’t act

VerDate Aug 31 2005 04:34 Dec 13, 2007 Jkt 069060 PO 00000 Frm 00055 Fmt 7634 Sfmt 0634 E:\CR\FM\K12DE7.108 H12DEPT1 bajohnson on PROD1PC71 with HOUSE H15374 CONGRESSIONAL RECORD — HOUSE December 12, 2007 and pay for it by closing a loophole might or might not do. Article I of the so nobody is seeing their taxes lowered that gives people in our country who Constitution mentions Congress as the under this bill. That’s point number try to escape taxation by going over- first branch of government for good one. seas, don’t act. That’s irrational as reason, to keep a check on the execu- But point number two is this is a new well as irresponsible. tive, not vice versa. precedent that is being established So what we are saying to the Senate Mr. Speaker, I yield 2 minutes to the here. What is this new precedent? This is we are giving you another chance. It gentleman from California (Mr. BECER- tax, the alternative minimum tax, is a has been blocked in the Senate by the RA). mistake. It was never intended to be. Republican minority and by the Presi- Mr. BECERRA. Mr. Speaker, I thank Everybody acknowledges that. It was dent of the United States. We have to the gentleman for yielding. designed to get 155 really rich people in act on the AMT. You have to act at Mr. Speaker, today Americans be- 1969, to make them pay taxes. It was long last responsibly, and so do Senate lieve that our Nation’s leaders have never designed to tax 23 million people Republicans and so does the President forgotten the middle class. They be- in the middle class this year. So we of the United States of America. lieve that Big Business gets whatever agree in Congress this shouldn’t exist. Vote for this bill. it wants any time it wants it in Wash- Let’s get rid of it. In all preceding Con- Mr. MCCRERY. Mr. Speaker, I yield 2 ington, DC, and they feel that way be- gresses we’ve said, let’s not get new minutes to the distinguished gen- cause what they see is that the top people caught up into this trap, and tleman from Michigan (Mr. CAMP), the Americans in income have seen their just be done with it. ranking member of the Health Sub- incomes skyrocket. Meanwhile, most The new precedent that is occurring committee of the Ways and Means Americans have seen their wages stag- here today is, the majority says, while Committee. nate for the last 5 years. we may not like this tax itself, we Mr. CAMP of Michigan. Mr. Speaker, Americans have watched as 3 million want that money. We may not like this the bill we are debating today appears manufacturing jobs have left this coun- way of taxing it, but we sure want this to be an exercise in futility. Not only try, and today, outsourcing to China money coming into the Federal Gov- has the President said he will veto it, and India threaten millions more. We ernment. And that’s the new precedent but it has virtually no chance of pass- see pensions and health insurance be- that is occurring today which is an en- ing the Senate. So why has a bill been coming too expensive for too many dorsement of this tax increase, a en- brought to the floor that virtually is Americans to afford. We have seen the dorsement in acceptance, a wanting of going nowhere? costs double for those pensions and this new and higher tax revenue. Instead of this bill, the House should that health insurance over the last 5 What does that do? That brings us to be voting on the bill the Senate passed years, and we have seen gasoline prices a whole new size of government. What last week. I wouldn’t call it Senate triple. we have had in the last 40 years is the blockage. It passed 88–5. The Senate Federal Government has taxed the U.S. b 1730 prevents 23 million Americans from economy at 18.3 percent. That’s the 40- being hit by the onerous alternative What we need is an economy that year average. That’s how much Wash- minimum tax and does it without per- works for everyone and makes America ington takes out of the U.S. economy. manently increasing taxes. The bill be- stronger. So what we propose in this With this tax in place, with this new fore us includes $50 billion in tax in- bill is to show the American people alternative minimum tax, that takes creases. That is $50 billion in taxes the that we do hear them. us up to an unprecedented level of gov- American public was never intended to This bill is responsive. It provides tax ernment spending and taxing to 24 per- pay and should never pay. relief to 23 million middle-class fami- cent. What the majority is doing is Last May when the Republicans were lies, and it helps 12 million children by putting us on this path of ever higher in the majority, we passed legislation expanding the child tax credit. And levels of taxation, even higher than to prevent the AMT from hitting mid- this bill is responsible because, rather during World War II. Why are they dle-income taxpayers. We finished our than just borrow the money to provide doing this? To spend more money. work early and responsibly so the IRS the tax relief, we pay for it up front. There is a difference in philosophy had time to reprogram its computers And the Speaker already said it. We’re here, Mr. Speaker. There’s a basic phil- and print accurate tax forms which giving it to tens of millions of people, osophical difference. My good friend, prevented unnecessary confusion for the tax relief, and only asking thou- who’s a good man from Massachusetts taxpayers. sands to pay for that. will say, well, they’re just borrowing to But here we are in December and the This is responsible because we will do this. We say, let’s address entitle- Democrats still have not finished their not add to the already big $9 trillion ments. Let’s focus on spending and work on the temporary AMT patch. debt. We won’t add to the fact that keep taxes low. Unfortunately, because of their inac- today alone, $2 billion will have been They say, we don’t want this tax but tion, millions of taxpayer refunds will spent by this country in deficit spend- we want this money so we’re going to be delayed for months. Unfortunately, ing. Each and every American in this raise some other permanent tax to get because of their actions here today, country, including the child that is it into the government. those refunds will be further delayed. born today, begins a birth tax now of a Here’s the difference. Our priority is The IRS has warned the majority $29,000 bill because of the size of the the taxpayer comes first, government party that failure to act will result in debt. second. Their priority is government $75 billion in refunds being delayed for We want to do this responsibly. This comes first, the taxpayer is second. taxpayers who file their returns before is a different day in this Congress. We The government’s in the front of the March 31 of next year. Millions more told America we would change direc- line. The taxpayer gets stuck with the will be delayed to taxpayers filing after tion, because we want to be responsible tab. that date. Rather than take up the and help all Americans, but be respon- We’re saying the American families Senate bill which the President has sible and pay for what we do. are taxed enough. They’re paying signaled his intent to sign, the major- Mr. MCCRERY. Mr. Speaker, at this enough in taxes. Because, you know ity party in the House is wasting time time I yield 3 minutes to the distin- what, we’ve got to watch it. We’ve got by bringing up a bill that includes un- guished gentleman from Wisconsin, a to make sure that we’re competitive in acceptable tax increases. People are al- member of the Ways and Means Com- the 21st century. We’ve got to make ready paying high enough taxes. They mittee, Mr. RYAN. sure that we can keep jobs in America. are already paying enough in taxes. I Mr. RYAN of Wisconsin. Let me put And if we put ourselves on this path of urge my colleagues to vote against this in context. Mr. Speaker, the dis- unprecedented levels of taxation, we H.R. 4351. tinguished Speaker of the House came will lose our greatness in this century. Mr. NEAL of Massachusetts. Mr. to the floor and said, we’re providing We will sever that legacy of giving the Speaker, we cannot predicate our ac- tax relief for people. No, we’re not. next generation a higher standard of tions in the House of Representatives This isn’t tax relief. What this bill at- living, and we will be unable to com- on the basis of what the President tempts to do is prevent a tax increase, pete with the likes of China and India

VerDate Aug 31 2005 06:48 Dec 13, 2007 Jkt 069060 PO 00000 Frm 00056 Fmt 7634 Sfmt 0634 E:\CR\FM\K12DE7.111 H12DEPT1 bajohnson on PROD1PC71 with HOUSE December 12, 2007 CONGRESSIONAL RECORD — HOUSE H15375 if we buy into this notion of ever high- For years they’ve said we need to pay We, on the Democratic side, want to er taxes. That’s why we should oppose for all our spending, pay for all our look at this in the responsible way, as this bill. taxes. So what have they done? the American people expect. We have Mr. NEAL of Massachusetts. Mr. I have a list of 27 different pay-fors to provide tax relief for 23 million Speaker, what my friend, Mr. RYAN, that have been used multiple times al- American families. How to do that is just said, he’s really a good guy here. ready in this session. It’s like using most assuredly to pay for it. And we’re He simply said that our priority was a your home as collateral 27 different doing it by closing these offshore loop- bit confused. Our priority is clear. Cut times. In the real world we call that holes. taxes for 23 million Americans and fraud. Mr. MCCRERY. Mr. Speaker, I yield close an offshore account. It’s unfortunate we are here today. I 21⁄2 minutes to the distinguished gen- With that, I would like to yield 2 honestly don’t believe when Democrats tleman from Virginia, a respected minutes to the gentleman from Texas created this tax in the 1960s that they member of the Ways and Means Com- (Mr. DOGGETT). intended ever to cover this many mid- mittee, Mr. CANTOR. Mr. DOGGETT. After having run the dle-class Americans. But it has hap- (Mr. CANTOR asked and was given national debt up sky high, these Re- pened. Republicans, to their credit, had permission to revise and extend his re- publicans clamor for another loan. killed the AMT in 1999, but President marks.) ‘‘Just give us another $50 billion for Clinton unfortunately vetoed it. Today Mr. CANTOR. Mr. Speaker, just as one more tax cut.’’ And we Democrats it has gotten bigger and badder and she did this evening, on November 9 of are saying ‘‘No, your debt addiction worse than ever. It is appropriate that this year, Speaker PELOSI stood on the must stop today. You’re way over your we move to both freeze and then to re- floor of this House and told the Amer- credit limit.’’ peal the alternative minimum tax. But ican people that the middle class was The Republican borrow-and-spend ap- there are real serious problems with long overdue for tax relief. She said proach that we’ve had for the last 7 this bill. that an AMT bill had to be about tax years may be easy politics, but it’s Paying for a temporary tax of 1 year fairness, fiscal responsibility and keep- mighty hard on an economy where the with a permanent tax is just, again, fis- ing America competitive. dollar keeps falling so that it’s worth cally irresponsible. It is like taking a Yet, once again, Mr. Speaker, the even less today than a Canadian loo- loan out to pay for a cheeseburger. current attempt at patching the AMT ney. This bill ignores the need to continue rings hollow. As the ranking member In this bill, one way that we stop this tax relief for States that have State indicated, we know where this debate Republican credit card borrowing spree and local sales tax deductions, for col- is going; and, frankly, we know where is by adopting much of the Abusive Tax this bill is going: nowhere. This at- Shelter Shutdown Act, which I first in- lege tuition tax credits, for research tempt, just as others that have failed, troduced in June 1999. It combats tax and development tax credits, even for illustrates to me the disconnect be- shelters by denying a deduction for teachers who take classroom supplies tween this majority in this House and transactions that lack what is called and pay for them out of their pockets, ‘‘economic substance.’’ What that we’re not addressing their needs. And the American people. In fact, it echoes means is no more tax evasion by cor- those all expire at the end of this year. what’s been going on in this House over porations that rely on what one pro- Finally, I think it is a mistake to the last several weeks, if not months. fessor described as ‘‘deals done by very raise taxes in order to prevent a tax in- Here we are a week and a half before smart people that, absent tax consider- crease. What we ought to be doing is Christmas and we’ve not finished the ations, would be very stupid.’’ And it is we ought to be sitting down together, work that the American people sent us very stupid to allow them to continue Republicans and Democrats, figuring here to do. doing that. out a way to thoughtfully and care- But, in fact, it is the disconnect be- When the corporate tax dodgers are fully trim this budget, this big, fat, tween the majority leadership and mid- made to pay their fair share, as this bloated, obese budget up here so we dle-class American families that trou- bill does today, everybody else who don’t increase taxes. Before Wash- bles me most. If you look at what’s plays by the rules can pay less. And ington asks families to tighten their going on out there, families are wor- that’s what this bill does. We stop cor- belt, we ought to sit down and tighten ried about the flagging economy which porate tax evasion; we stop corporate our belt first. has fueled alarming levels of anxiety. tax dodgers from shifting the tax bur- This is a bad bill, a fiscally irrespon- In spite of a weak dollar, skyrocketing den to middle-class families, ensuring sible bill, and I urge opposition. gas prices, falling home values, and today both tax fairness and fiscal re- Mr. NEAL of Massachusetts. Mr. other mounting concerns, the Demo- sponsibility. Speaker, I need to quickly correct the crat majority in this House refuses to Mr. MCCRERY. Mr. Speaker, may I record. In 1969 when the alternative accept the reality of a $2,000 plus tax inquire as to the time remaining for minimum tax was put in place, it was hike facing millions of middle-class each side. not a Democratic scheme. The vote was families. The SPEAKER pro tempore. The gen- 389–2 in this House of Representatives. Let’s get to work. Let’s realize that tleman from Louisiana has 17 minutes With that, I would like to yield 1 this bill isn’t going anywhere. remaining. The gentleman from Massa- minute to the gentleman from Georgia The House majority refuses to cut chusetts has 14 minutes remaining. (Mr. SCOTT). taxes or sustain expiring growth, pro- Mr. MCCRERY. Mr. Speaker, at this Mr. SCOTT of Georgia. Mr. NEAL, I growth tax cuts without first raising time I would yield 3 minutes to the dis- want to thank you and Chairman RAN- other taxes. Their dogged adherence to tinguished gentleman from Texas (Mr. GEL for your leadership on this ex- this policy as it applies to AMT puts BRADY), a member of the Ways and tremely important bill. them at odds with the American peo- Means Committee. There are several points I would like ple. Mr. BRADY of Texas. Mr. Speaker, to make. First of all, my good friends, The overwhelmingly bipartisan Sen- it’s sort of hard to listen to lectures my Republicans on the other side of ate bill, as has been said, rightly aban- about fiscal responsibility. For years the aisle, it must be clear. There’s no doned the misguided idea of raising Democrats have claimed that it is time question about it. What the Repub- taxes to cut taxes just so Washington to pay for this war; it’s fiscally irre- licans want to do is borrow the money can spend more. In this tax fight the sponsible not to pay for this war; it to pay for this tax from China, from stakes for everyday families are high, ought to be part of the budget. Have Japan, and have our children and and the potential consequences are se- they paid for the war? No, not a dime. grandchildren pay for it. But they vere. For years they said it’s irresponsible don’t want to just stop there. They also Mr. Speaker, just 4 weeks ago Speak- to raise the debt limit; it’s all your want to protect those wealthy 1 per- er PELOSI stood here and promised the fault; we cannot raise the debt limit. cent who are using tax loopholes to middle class tax fairness and fiscal re- What did they do the first 2 months of hide their money away from taxation sponsibility. In light of this attempt, I this session? Raise the public debt in offshore accounts. That is what our wonder why we can’t just come to- limit. Republican colleagues want to do. gether, stop the political games, and

VerDate Aug 31 2005 04:34 Dec 13, 2007 Jkt 069060 PO 00000 Frm 00057 Fmt 7634 Sfmt 0634 E:\CR\FM\K12DE7.113 H12DEPT1 bajohnson on PROD1PC71 with HOUSE H15376 CONGRESSIONAL RECORD — HOUSE December 12, 2007 support real tax relief for 23 million increase. We’re not giving them tax re- the smartest guys that serves here in American families. lief. We’re preventing a tax increase. this institution, and let me just say Mr. NEAL of Massachusetts. Mr. So why on Earth, to prevent that tax this. Speaker, without this bill passing, increase, should we increase taxes on I agree with what he said. If you stop there are 74,000 people in Mr. CANTOR’s somebody else? It just doesn’t make 23 million people from getting a tax in- district that will pay alternative min- sense, Mr. Speaker. crease, that is tax relief. There are imum tax next year. Mr. Speaker, at this time, to further 33,000 people tonight in Mr. With that, I would like to yield 2 elucidate that point and others, I yield HENSARLING’s district that are going to minutes to the gentleman from Cali- 2 minutes to the gentleman from Texas pay alternative minimum tax if we fornia (Mr. THOMPSON). (Mr. HENSARLING). don’t pass this legislation. Mr. THOMPSON of California. Mr. Mr. HENSARLING. Mr. Speaker, I Mr. Speaker, with that, I yield 2 min- Speaker, today we’re debating legisla- thank the gentleman for yielding, and utes to the gentleman from North Da- tion that will provide middle-class he makes a very important point. As kota (Mr. POMEROY). families with tax relief from the AMT hard as I look at this bill, I can’t find Mr. POMEROY. Mr. Speaker, I thank tax, 23 million taxpayers. We’ll pass any tax relief in it. People who some- the gentleman for yielding. this legislation, offering AMT relief to how think that by preventing a mas- This has been a very curious discus- middle-class families without increas- sive tax increase on the American peo- sion, and statements made have no re- ing the Federal deficit. ple, that that’s tantamount to relief, lation whatsoever to either reality or My good friend from Wisconsin said they need to talk to the schoolteacher to history. earlier that this sets a new precedent. in Mesquite, Texas. They need to talk We just heard the pay-for in this bill Yes, it does. We’re going to be paying to the rancher in Murchison, Texas. described as a massive tax increase for this tax relief. That is precedent Again, if you make the same amount that will affect teachers in Texas. This setting. To do otherwise would be an of money next year that you made last bill goes after hedge fund managers, abdication of our responsibilities, both year and you’re paying the same parking income in Bermuda bank ac- as legislators, and as stewards of our amount of taxes, where’s the tax relief? counts, exploiting tax loopholes and Nation’s finances. This bill is misnamed. The AMT is not paying what they owe. This administration has presided misnamed. It ought to be called the al- The alternative is to do what the mi- over 7 years of fiscal mismanagement. ternative massive tax increase because nority is suggesting, and that is just to Spending has skyrocketed. Entitle- it’s a massive tax increase on the borrow the money, borrow the money ments have expanded. Taxes have been American people of $55.7 billion. The and let the kids worry about how cut without any regard to the bottom only thing that’s alternative about it they’re going to pay it back in their line. is who has the great honor and pleasure day. Well, at least we have agreement of paying for this tax. we need to address the alternative min- 1745 b Now, I’ve heard many speakers on imum tax, but let me tell you why As a result, our budgets haven’t bal- the other side of the aisle come and we’re worried about borrowing the anced, our surpluses turned into defi- say, well, we pay for it. Well, that will money. cits, our national debt exploded, and certainly come as a great relief to the Since President Bush took office, the our borrowing from other countries teachers and the ranchers and the gross national debt has increased near- more than doubled. small business people of the 5th Dis- ly $3.5 trillion. At that rate of bor- If there was ever a time when fiscal trict of Texas to know that you’re not rowing, do you know something? We discipline was necessary, it’s today. going to increase their taxes because will borrow an additional $57 million in From day one, this Democratic ma- somehow you’ve paid for it. the course of this debate. It is truly as- jority has pledged our commitment to You haven’t paid for anything. tounding the red ink that they’ve run budget enforcement. One of our first You’ve put a massive tax increase on this country into, and all we hear from acts as a new majority was to imple- the American people, and in this par- them today is more borrowing, please. ment PAYGO rules. The position of ticular case, you are putting it on in- You know, they had a chance during this House and this majority has not vestment. You’re putting it on small their tenure here to fix the alternative changed. Congress must pay as we go, businesses. You’re putting it on the minimum tax. They say we shouldn’t and we pay for this tax relief today by capital of capitalism, and you are have to pay for it because it was never closing loopholes which allows tax threatening the paychecks of the intended to act this way. Well, they avoidance for wealthy folks who move American people. had 7 years to fix this alternative min- their money offshore, and we take Now, I’ve heard many people come imum tax, and instead, you know what what we gain from closing that loop- here to the floor and say, well, we have they did? They counted the revenue hole and in turn we pay for middle- to be fiscally responsible; this needs to that was projected to come in on the class tax relief. Twenty-three million be revenue neutral. Well, I agree with alternative minimum tax to justify people will be hit with a tax increase if my friends on the other side of the those tax cuts, those budget-busting we don’t pass this. aisle. It does need to be revenue neu- tax cuts passed in 2001 and 2003 that This legislation provides responsible tral. It ought to be revenue neutral to have put us in this deficit ditch that tax relief. It does not increase the def- the taxpayer, not the Federal Govern- we find ourselves in. icit and it deserves our vote. ment. That’s the revenue neutrality It’s time for fiscal responsibility. Mr. MCCRERY. Mr. Speaker, several that we should attempt to achieve Pass this bill. Pay for AMT relief. of the speakers on the majority side here. Mr. MCCRERY. Mr. Speaker, I yield have said that this bill provides tax re- I heard my friend, the gentleman myself so much time as I may con- lief for 23 million middle-class tax- from Massachusetts, say, well, we have sume. payers. That is simply not correct, at to pay this or there’s going to be this Mr. Speaker, some of the Members of least not in the common sense of that tax increase. Well, there’s another al- the majority who seem to be so sincere term. ternative. There’s several alternatives. about not borrowing any more money If you ask somebody on the street, a One’s the Taxpayer Choice Act, which are the same people that are voting for taxpayer, if you pay the same amount would get rid of the AMT once and for appropriations bills that exceed what in taxes this year as you paid last year, all. we spent last year plus inflation. So is that tax relief? No. They’re paying There’s a clear choice before us. they don’t seem to be worried about the same in taxes. That’s all this bill Who’s going to get the $55.7 billion, borrowing more money to spend on does. Doesn’t give them any relief. If Federal Government bureaucrats or goodness knows what. And they’re not you ask that person on the street, if American families? We vote for the suggesting yet that we just wipe out you pay more in taxes this year than American family. all the deficit and thereby prevent any you paid last year, is that a tax in- Mr. NEAL of Massachusetts. Mr. more borrowing by raising taxes to- crease? Yes. We’re trying to prevent 23 Speaker, one of the reasons I like Mr. tally to do away with the deficit. So million taxpayers from getting a tax MCCRERY is because I think he’s one of we’re just talking about a degree of

VerDate Aug 31 2005 04:34 Dec 13, 2007 Jkt 069060 PO 00000 Frm 00058 Fmt 7634 Sfmt 0634 E:\CR\FM\K12DE7.116 H12DEPT1 bajohnson on PROD1PC71 with HOUSE December 12, 2007 CONGRESSIONAL RECORD — HOUSE H15377 adding to the debt, little here, little ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE has been a longtime advocate of repeal- there. If we do it by spending, it’s The SPEAKER pro tempore. The gen- ing the AMT, Mr. PASCRELL. okay. If we let a tax increase take tleman will suspend. The gentleman Mr. PASCRELL. Mr. Speaker, I’m place to get the deficit down, that’s will address his remarks to the Chair. glad we had that last exchange because okay. The gentleman may proceed. that’s the heart of the issue. It’s dis- Well, I think that pretty well defines Mr. BLUMENAUER. Mr. Speaker, I ingenuous. It’s almost bordering on one of the differences between the two appreciate the admonition. hypocritical because from 2008 to 2017 parties in this House. We don’t want to That’s why we’ve had a $3.4 billion the administration, the same adminis- increase taxes to balance the budget. increase in the national debt in the tration that got us into this mess, as- We’d rather reduce spending. We’d first six years of the Bush administra- sumes the revenue that we will be ac- rather hold the line on spending, non- tion as opposed to a surplus, budget cepting from AMT every year. This is defense discretionary at least and non- surplus from the Clinton administra- disingenuous. Tell the American people homeland security discretionary. We tion, which I think the majority leader what the whole story is, not just half don’t want to solve the deficit by in- will be talking about. the story. creasing taxes; whereas, the majority This is not a tax increase. The Fed- What we want to do, Democrats, we is content to raise spending to increase eral Government will collect exactly want to prevent millions of working the debt, and then the only way they the same taxation over the next 10 families, 100,000 in my own district, want to address the debt is to increase years under our proposal as under the from seeing their taxes increase sub- taxes. Bush budget proposal right now. The stantially. We’re talking $3,000, $4,000. That’s a pretty clear demarcation, difference is they’re spending 23 mil- We’re not talking chicken feed here. It Mr. Speaker, of the philosophies of the lion taxpayers’ alternative minimum pays for the lost revenue by stopping two parties, and it’s become quite ap- tax for the next 10 years. That’s how hedge fund managers and corporate parent as this year has progressed. they deal with the budget. We stop CEOs from escaping income taxes by Fortunately, the majority, which was that. using offshore tax havens. then the minority, voted with us the Mr. MCCRERY. Mr. Speaker, I appre- I can only conclude from what I have last time we had a freestanding AMT ciate the gentleman from Oregon heard this evening that the minority patch, with no pay-for. The now-major- bringing up the fact that President wants to protect tax evaders. That’s ity who was there then voted over- Clinton vetoed the repeal of the AMT what you want to do. Tell the Amer- whelming with us to do exactly what back in 1999 when we were in the ma- ican people straight up what you want we’re suggesting we now do and what jority. We did indeed repeal the AMT, to do. You don’t want to protect the the other body has already passed. only to have that vetoed by President fireman, the police officer, the doctor, Mr. Speaker, that’s the clear resolu- Clinton. the lawyer. You want to protect that tion of this problem. I beg the major- However, the gentleman went on to small group of people, you heard the ity, let’s don’t delay this anymore. say that for the last few years we did Speaker talk about it, 5,000 to 10,000 Don’t cost the taxpayers anymore. nothing and accepted all the revenues. people. That’s what this protection Don’t make the IRS send another set of That’s simply not the case. We put a scheme of yours is all about. forms to the printer. Don’t delay the patch on the AMT every year, just like Most Americans think what we’re refunds of millions, maybe as many as we’re proposing to do this year. The trying to do is fair and decent and rea- 50 million taxpayers. That wouldn’t be President’s budget does not assume the sonable because it is. But in the warped right for our inaction. revenues from the AMT increase in this reality of Washington, there are Mem- So let’s get this off the floor. I don’t fiscal year. His budget proposes a 1- bers of Congress who believe otherwise. have any more speakers. Let’s vote, get year patch with no pay-for. There are actually Members who would this done, and then we can get on to Mr. BLUMENAUER. Mr. Speaker, rather see working families bear the really solving the problem. will the gentleman yield? burden of tax hikes than even a minor Mr. Speaker, I reserve the balance of Mr. MCCRERY. I yield to the gen- adjustment in the Tax Code to ensure my time. tleman from Oregon. that the richest among us pay their Mr. NEAL of Massachusetts. Mr. Mr. BLUMENAUER. Doesn’t the fair share. This is what this is all Speaker, I thank the gentleman for Bush administration budget assume about. Fairness. You kicked the can clarifying the issue of why we should the CBO numbers that include the al- down the street further. It’s our chil- borrow the money. With that, I yield 2 ternative minimum tax for the next 10 dren and our grandchildren that will minutes to the gentleman from Oregon years? have the burden. (Mr. BLUMENAUER). Mr. MCCRERY. Not for the year 2007, Speak up tonight in one voice. You Mr. BLUMENAUER. Mr. Speaker, I which is the object of the legislation have an opportunity. The barometer is understand after what the gentleman before us. not Wall Street; it’s Main Street. just said that he would like to stop de- Reclaiming my time, yes, this legis- ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE bate and move on because, with all due lation deals with tax year 2007. If we do The SPEAKER pro tempore (Mr. respect, that’s turning it on its head. nothing, the AMT goes into effect for ISRAEL). Members are reminded to ad- He’s right. When they were in charge, tax year 2007. The President’s budget dress their remarks to the Chair. they did offer up a fix that President says for tax year 2007 there should be a Mr. MCCRERY. Mr. Speaker, I yield Clinton mercifully vetoed because if it patch, a freeze on the AMT so that it myself such time as I may consume. had been in place in 1999, their proposal doesn’t affect additional taxpayers, and The gentleman on the Ways and would have required almost $800 billion he does not call for the revenues in his Means Committee who just spoke more in deficit spending. But when budget. claimed that I was being disingenuous. they were entirely in charge for the Mr. Speaker, I reserve the balance of I’m sorry if my remarks were inter- last 6 years, they ignored this all to- my time. preted as being disingenuous. I don’t gether. In fact, they have used every Mr. NEAL of Massachusetts. Mr. mean to be. I was simply trying to dime that was projected by CBO to fuel Speaker, might I inquire as to how stick to the substance of the legisla- their massive spending increases. much time remains on each side? tion before us, which deals with the Go back and look at the record. Your The SPEAKER pro tempore. The gen- AMT as it applies to tax year 2007. And record for increased spending has been tleman from Massachusetts (Mr. NEAL) with respect to that tax year, the far above the rate of inflation, far has 61⁄4 minutes remaining. The gen- President’s budget simply does not, as above the Clinton administration. It tleman from Louisiana (Mr. MCCRERY) has been suggested by some Members embarrassed your fiscal conservatives. has 41⁄2 minutes remaining. on the other side, assume revenues Even Mr. RYAN on the Budget Com- from an increase in the AMT. It simply mittee kind of gets embarrassed about b 1800 doesn’t. your performance for the last 6 years. Mr. NEAL of Massachusetts. With Now, the gentleman is correct, and I That’s why you have increased in the that, I would like to yield 2 minutes to would love to debate this at the appro- Bush—— the gentleman from New Jersey, who priate time, but the gentleman from

VerDate Aug 31 2005 06:48 Dec 13, 2007 Jkt 069060 PO 00000 Frm 00059 Fmt 7634 Sfmt 0634 E:\CR\FM\K12DE7.118 H12DEPT1 bajohnson on PROD1PC71 with HOUSE H15378 CONGRESSIONAL RECORD — HOUSE December 12, 2007 New Jersey is certainly correct that because this tax was never intended to venting 23 million middle class families from from 2008 to 2017, the President’s budg- hit these people. Did they forget that paying higher taxes this April. et does, indeed, assume revenues from in 2001 the Republican Congress knew Without this legislation, these 23 million an increase in the AMT. However, the that the first round of Bush tax cuts families will be subjected to the alternative President’s budget also assumes mak- for the wealthy would be paid partly by minimum tax, including almost 111,000 of my ing permanent the tax cuts of 2001 and pushing 24 million middle-income constituents. 2003. So you have to weigh all that to- American taxpayers into the AMT in When the AMT was enacted, it was meant gether, and when you do, you get a 2007? Did they forget that for the past to ensure the wealthiest among us paid their fairly level percent of GDP, around 18.5 6 years their budgets anticipated tax fair share of a tax that was never designed to percent of GDP, coming into the gov- revenues from these middle-income hit the pocketbooks of middle-class families. ernment in the form of revenues. Under taxpayers to mask their failed fiscal While this is only a temporary fix, I want to the majority’s PAYGO rules, if contin- policies of the last 6 years? be clear that I hope we can move forward in ued to be applied, and I hope they’re No, they didn’t forget. They just the near future to provide a long-term solution not, we would see revenues as a percent didn’t want to act responsibly. We will to this problem. of GDP rise by 2017 to 20.1 percent of not act so recklessly. We will provide I am proud that Chairman RANGEL and GDP. So there’s a big difference be- tax relief and we will pay for it. Speaker PELOSI have brought this fix to the tween the PAYGO rules of the majority Mr. MCCRERY. Mr. Speaker, I re- floor today while still adhering to the pay-as- and what the President has proposed. serve the balance of my time. you-go promise this Democratic controlled Mr. Speaker, I reserve the balance of Mr. NEAL of Massachusetts. Mr. Congress has promised the American people. my time. Speaker, I would like to recognize the Their leadership have truly brought our Mr. NEAL of Massachusetts. Mr. gentleman from New York (Mr. CROW- country in a new direction. Speaker, I would like at this time to LEY) for 1 minute. On the other hand, President Bush has yield 1 minute to the gentlewoman Mr. CROWLEY. Mr. Speaker, there threatened to veto and Senate Republicans from Nevada (Ms. BERKLEY). are a few key numbers to remember voted against the earlier House-passed AMT Ms. BERKLEY. Mr. Speaker, I rise today: 25 million, the number of Amer- bill because it adhered to our pay-as-you-go today in strong support of the AMT Re- ican families who will be hit by the promise. lief Act, a bill that’s going to provide AMT this year without any action; The stubborn fiscal irresponsibility of Presi- tax relief to millions of middle-income $2,000, the minimum increase in income dent Bush and Senate Republicans has de- Americans. taxes for those 25 million Americans layed getting middle-class tax relief approved If this legislation is not passed, more hit by the AMT; $9 trillion, our na- in a timely fashion and resulted in the Senate than 128,000 Nevada taxpayers will see tional debt today; $30,000, the share of passing AMT relief legislation that is not paid their taxes increase by the AMT. This the national debt by every man, for—passing debt instead of prosperity onto includes more than 30,000 people in my woman, and child in America due to our children and grandchildren. district who were never intended to We are trying every possible alternative to the reckless fiscal policies of President pay this tax, and they elected me to adhere to pay-as-you-go budget rules—revers- Bush; $0, the cost of this Democratic make sure that they don’t. ing the years of failed Republican policies that tax cut to the American public as Now, I believe the alternative min- have mortgaged our grandchildren’s future Democrats are weaning this country imum tax should be eliminated, but with additional foreign-owned debt—giving the off credit card-onomics; four, the num- until it is, this bill provides the nec- Senate one more chance to do the right thing. essary temporary solution to protect 23 ber of votes so far this year on legisla- While fixing the AMT is of outmost impor- million Americans who would be hit tion to fix the AMT in 2007; zero, the tance, we cannot afford to mortgage our chil- cruelly by an increase in the AMT in number of votes Republicans in the dren’s and grandchildren’s future to pay for 2007. House have taken to provide tax relief this tax relief. This bill also ensures that more to those 25 million Americans. Our country is currently burdened with over working parents will be able to benefit The game is up. The American people $9 trillion of national debt, with each Ameri- from a refundable child tax credit. Cur- are watching. Either we are going to can’s share at nearly $30,000. rently, some of the families who would stand together today to provide 25 mil- We simply cannot afford to keep adding to benefit the most from the $1,000 refund- lion middle-class Americans a tax cut this. able credit actually make too little to while not adding to the share of the Mr. Speaker, the Democrats in Congress qualify. This bill lowers the income deficit owned by our children and are providing common sense tax relief for mid- barrier, allowing all eligible families grandchildren, or we can stick with the dle-class American families, and we are doing earning more than $8,500 to benefit. failed policy of the past and continue it in a fiscally responsible way. It’s also important to note that the to stall and do nothing. I urge this bill’s adoption. tax relief in this bill is fully paid for The choice is easy. America can no Mr. NEAL of Massachusetts. I would and will not add a single dollar to the longer live off credit card-onomics. We like to call upon at this time the ma- national debt. That’s fiscal responsi- need to manage our House like we ex- jority leader of the House of Represent- bility. pect our constituents to manage their atives, my friend, Mr. HOYER, to close Mr. MCCRERY. Mr. Speaker, I re- homes. Support this bill. It is tax relief the debate on our side. serve the balance of my time. without tax recklessness. Mr. HOYER. I thank my friend from Mr. NEAL of Massachusetts. Mr. Mr. NEAL of Massachusetts. Mr. Massachusetts (Mr. NEAL). Speaker, I would like to yield 1 minute Speaker, I yield for the purpose of I want to say at the outset that I am to the gentlewoman from Pennsylvania making a unanimous consent request pleased that Mr. MCCRERY is on the (Ms. SCHWARTZ). to the gentlewoman from New York floor. There will be other times to say Ms. SCHWARTZ. I want to thank (Mrs. MALONEY). this, but Mr. MCCRERY is one of the re- Chairman NEAL for his leadership on (Mrs. MALONEY of New York asked spected Members of this House. I think this issue and for his dedication to tax and was given permission to revise and he serves us well as ranking member of relief for middle-income Americans. extend her remarks.) the Ways and Means. I know he’d rath- Why are we again talking about the Mrs. MALONEY of New York. Mr. er be chairman of the Ways and Means, AMT? We are here because Republicans Speaker, I rise in support of this legis- but we like him as ranking member. He have made it clear that they prefer po- lation, which will provide relief to over has indicated he is not going to be with litical expediency over fiscal responsi- 100,000 of my constituents. us in the next Congress. That’s regret- bility. They have decided that it is fine This week, the House will once again re- table because he is one of the good to pile debt onto the shoulders of fu- state our commitment to fiscal responsibility Members of this Congress, and I want ture generations. They say so what if and pass legislation to provide millions of mid- to say that to my friend. we add $50 billion next year to our na- dle-class families with tax cuts to grow our Now, let me talk about the question tional debt? So what if we add $1 tril- economy without increasing the national debt. at hand. Mr. Speaker, we debate here lion to our national debt over 10 years? The AMT Relief Act contains must-pass pro- in the House, and many Americans My Republican colleagues have said visions that will provide $50 billion in imme- have the opportunity to see this de- there is no need to pay for AMT relief diate tax relief for working families by pre- bate. This debate is a relatively simple

VerDate Aug 31 2005 04:34 Dec 13, 2007 Jkt 069060 PO 00000 Frm 00060 Fmt 7634 Sfmt 0634 E:\CR\FM\K12DE7.125 H12DEPT1 bajohnson on PROD1PC71 with HOUSE December 12, 2007 CONGRESSIONAL RECORD — HOUSE H15379 debate. It’s not just about the alter- erated by the alternative minimum tax are not taxing me and not taxing thee, native minimum tax or the con- in this fiscal year. but taxing the children and the grand- sequences of not putting a so-called b 1815 children behind the tree. patch, and nobody in America knows It takes courage to pay for things. what that means but simply it means So, ladies and gentlemen, if we don’t The largest expansion in entitlement saying that the alternative minimum pay for it, what do we do? Because the programs in the last 25 years was done tax won’t affect 25 or so million people President relied upon it in previous with hardly any Democratic votes and in America. None of us on either side of budgets, and, frankly, the Congress did all Republican votes, and it wasn’t paid the aisle want that to happen. The as well on both sides of the aisle. If for. We were told that it was within the issue is not whether or not any of us that revenue does not come in and we budget. It wasn’t. It wasn’t paid for. feel that ought to happen. It is do you don’t pay for it, there is only one thing Our children and grandchildren will pay for it? Do you provide for the rev- to do: borrow. And this administration pay that bill. enue fix that will be necessary if we has borrowed more money from for- Have the courage, the wisdom, and cut that revenue? eigners than any administration in his- the good common sense to adopt this Let me say to my friend from Lou- tory all together. From Washington to legislation, and urge our colleagues in isiana, he has said a number of times Clinton, all together they didn’t bor- the other body to share that courage, on this floor that the President didn’t row as much money as this President to share that common sense to morally count the revenue for this year from has borrowed from foreign govern- step up to the plate and have this gen- the AMT. He didn’t provide the money ments and put our country at risk. eration pay for what it buys. Pass this to pay for it. He simply didn’t antici- We’re saying let’s stop that. And in the important bill and pay for it. pate the revenue. What he did not say, 1990s, ladies and gentlemen of this GENERAL LEAVE however, is that the President did an- House, we said let’s stop that. Who’s Mr. NEAL of Massachusetts. Mr. ticipate the revenue for the next 9 ‘‘we’’? President Bush, the Democratic Speaker, I would ask unanimous con- years. Furthermore, the President an- House and the Democratic Senate said sent that all Members have 5 days in ticipated in 2006 that we would have let’s stop that, and we adopted PAYGO. which to revise and extend their re- the revenue generated by the AMT in And in 1997 we had another agreement, marks. the year we’re going to so-called fix, so and a Democratic President and a Re- The SPEAKER pro tempore. Is there that the administration sent us a budg- publican Congress said let’s continue objection to the request of the gen- et counting on this revenue that we are that policy because we believe it’s a tleman from Massachusetts? There was no objection. about to say we won’t receive. good policy. Mrs. JONES of Ohio. Mr. Speaker, I am So I tell my friend from Louisiana, it And just a few years ago, the former pleased to see that once again we have a re- is somewhat misleading, I think, not chairman of the Budget Committee, sponsible solution to the alternative minimum intentionally, I understand, to say that Jim Nussle, who is now the Director of tax from a broad, policy-oriented perspective. the President didn’t rely on the rev- the Office of Management and Budget, said PAYGO is a policy that has The alternative minimum tax is a critical enue for this budget. That’s true. He issue for the American middle class taxpayer relied on it last year and the year be- worked, and we ought to pursue it. But as my friend knows, in 2001, we simply who does not get to take advantage of sophis- fore that and the year before that and ticated tax planning and legal loopholes in the the year before that and the year be- abandoned PAYGO. Why did we aban- don PAYGO? Because demonstratively tax code. It is time that we addressed this fore that and in 2001. And he relied on issue once and for all to relieve the American it, I tell my friend, to offset your tax it had worked. For the previous 4 years we had, for the first time in the life- taxpayer from the agony of dealing with the cuts because, as you recall, in your 2003 AMT. A permanent fix is what we really need, time of anybody in this House of Rep- tax cut, part of the revenue that was but today we have to plug the dike once resentatives, had 4 budget years in a anticipated was this revenue that the again. gentleman says he does not want to row that produced a surplus. Four. It is particularly ironic that a tax that was collect and that the President is not Why? Because we had a PAYGO in meant for 155 wealthy individuals has become relying on for 2007. He’s accurate but in place. Why? Because when we wanted the bane of existence for millions of American a very narrow sense, because the Presi- to take actions, we had to have the taxpayers. Indeed the AMT has become a dent has relied upon it every other consequences of our actions and tell menace. Over seven thousand hardworking year. the American public it was not a free Ohioans in my district had the grim task of fil- Mr. MCCRERY. Mr. Speaker, will the lunch. We would have to pay for it. ing a return with AMT implications in the 2005 gentleman yield? That’s simply what this bill does. It tax year. Those are families with children, Mr. HOYER. I yield to my friend. pursues the policy of fiscal responsi- healthcare costs, unemployment issues, hous- Mr. MCCRERY. I thank the gen- bility. It abandons the policy of fiscal ing costs and the other money matters with tleman. The gentleman likewise is ac- irresponsibility and the pretense that which American taxpayers must cope. Tax re- curate in his remarks, very cleverly so. there is a free lunch that we have been lief is due. Mr. HOYER. Is that a compliment or pursuing for the last 7 years and in- As I mentioned after the introduction of H.R. not? curred that $1.6 trillion, give or take 2834, we must continue to laud the efforts of Mr. MCCRERY. Yes, sir, it is. But the $100 billion, in the last 7 years. American capitalists and the strides that they fact is the most recent budget sub- Ladies and gentlemen of this House, make in enhancing and creating liquidity in our mitted by the President for this tax- no one wants to have a tax increase for capital markets, and helping our economy able year, 2007, does not, in fact, as- these 25 million people. It was never in- grow into the dynamic force that it is today. I sume the revenues from an increase in tended. But some of my Republican am also aware of the critical role that offshore the AMT. colleagues say we didn’t intend this, so hedge funds play in asset management. But Mr. HOYER. Reclaiming my time, we ought not to pay for it. That’s like we must also have responsible budget offsets. Mr. Speaker, the gentleman is abso- saying I didn’t intend to run the stop The tenets of sound tax policy begin with lutely correct and that’s my point. But sign and have an accident, and there- the notions of equity, efficiency and simplicity. in previous years the President has fore, we don’t have to pay for the con- Relying on that traditional framework I am told us in his budget this revenue sequences. We have relied on this sure that we have come to a rational con- would be available, and he has relied on money, the President has relied on this sensus that will ensure 21 million Americans that to offset what would otherwise be money. But we’re saying we’re not will not be hit with the AMT. larger deficits either as a result of tax going to collect it, but we will respon- ‘‘Taxes are what we pay to live in civilized cuts or of spending. He has relied on sibly pay for it. society,’’ but dealing with the AMT has be- this money. In closing, let me say that CHARLIE come a bit uncivil. So what we are saying on this side of RANGEL likes to quote Russell Long, Mr. ENGEL. Mr. Speaker, I rise to address the aisle is let’s pay for the revenue who said, ‘‘Don’t tax me. Don’t tax H.R. 4351, the Alternative Minimum Tax Relief that the President anticipated if we’re thee. Tax the man behind the tree.’’ Act. not going to take it, and none of us Unfortunately, ladies and gentlemen of Mr. Speaker, the original idea behind the al- want to take the revenue that is gen- the House, the policies that we pursue ternative minimum tax, AMT, was to prevent

VerDate Aug 31 2005 06:48 Dec 13, 2007 Jkt 069060 PO 00000 Frm 00061 Fmt 7634 Sfmt 9920 E:\CR\FM\K12DE7.127 H12DEPT1 bajohnson on PROD1PC71 with HOUSE H15380 CONGRESSIONAL RECORD — HOUSE December 12, 2007 people with very high incomes from using spe- and its allies in Congress have followed that (2) by striking ‘‘2006’’ in the heading there- cial tax benefits to pay little or no income tax. course—their view, in the words of Vice Presi- of and inserting ‘‘2007’’. (b) EFFECTIVE DATE.—The amendments The AMT’s reach, however, has expanded be- dent CHENEY, has been that ‘‘deficits don’t made by this section shall apply to taxable yond just the wealthy to threaten millions in matter.’’ years beginning after December 31, 2006. the middle class. And when the AMT applies, I disagree. I think deficits do matter, be- Mr. MCCRERY (during the reading). its costs are often substantial. cause they result in one of the worst taxes— One reason for the AMT’s expansion is that, the ‘‘debt tax,’’ the big national debt that must Mr. Speaker, I ask unanimous consent unlike the regular income tax system, the AMT be repaid, with interest, by future generations. that the motion be considered as read is not indexed for inflation. Another reason is I think to ignore that is irresponsible and falls and printed in the RECORD. that individual income tax cuts enacted since short of the standard to which we, as trustees The SPEAKER pro tempore. Is there 2001 have provided higher credits and deduc- for future generations, should hold ourselves. objection to the request of the gen- tions and lowered tax rates, thereby leading to So, I think that the House pass this bill and tleman from Louisiana? There was no objection. more taxpayers owing tax under the AMT. give the Senate a second chance to reach Last year, 4.2 million Americans were af- that standard. POINT OF ORDER fected by the AMT. The Joint Committee on It may be that our colleagues at the other Mr. NEAL of Massachusetts. Mr. Taxation estimates that, if Congress does not end of the Capitol will not take advantage of Speaker, I make a point of order that act, 23 million taxpayers will be affected this that opportunity, and it may be that in the end the motion to recommit violates clause year. That will include over 54,000 families in the urgency of protecting middle-income fami- 10 of rule XXI because the provisions of my district—many of whom do not have very lies from the AMT will take priority over cor- the measure have the net effect of in- high income, and do not receive many special recting the mistaken policies of the last 7 creasing the deficit over the requisite tax benefits. We need to protect these Ameri- years. time period. The cost of 1 year of AMT cans from the AMT. But at least for today, we should not give up relief is $50 billion, and the motion con- Further, according to the New York City hope that better judgment will prevail and so tains no provisions to pay for that re- Independent Budget Office, the percentage of we should vote for this bill as it stands. lief. New York City taxpayers currently hit by the Mr. MCCRERY. Mr. Speaker, I yield The SPEAKER pro tempore. Does AMT far exceeds the comparable national esti- back the balance of my time. any Member wish to be heard on the mate: 6.7 percent versus 4.0 percent. The SPEAKER pro tempore. All time point of order? The bill before us today provides a much for debate has expired. Mr. MCCRERY. Mr. Speaker, I do not needed 1-year patch for the AMT. It is a nec- Pursuant to House Resolution 861, believe it is the intent of clause 10 of essary step in the right direction on this issue; the bill is considered read and the pre- rule XXI to require tax increases to and we completely pay for it. vious question is ordered. pay for preventing scheduled tax in- Mr. Speaker, I urge my colleagues to vote The question is on the engrossment creases. That is precisely what we are ‘‘yes’’ on H.R. 4351. and third reading of the bill. debating on this point of order. Mr. DINGELL. Mr. Speaker, I rise today in The bill was ordered to be engrossed If the Chair determines that this mo- support of H.R. 4351, legislation that will pro- and read a third time, and was read the tion violates rule XXI and the House vide critical tax relief to millions of middle third time. sustains this ruling, then the House is class Americans. I support the Democratic MOTION TO RECOMMIT OFFERED BY MR. endorsing more than $3 trillion of tax majority’s commitment to passing sensible leg- MC CRERY increases over the next 10 years. islation that will provide a solution to the loom- Mr. MCCRERY. Mr. Speaker, I offer a PAYGO, as a budget enforcement law ing Alternative Minimum Tax crisis. I am dis- motion to recommit. between 1990 and 2002, as the majority appointed that President Bush and the Repub- The SPEAKER pro tempore. Is the leader referred to, required automatic lican minority are opposing our efforts to pass gentleman opposed to the bill? spending reductions across the govern- this legislation. If this bill is not passed by the Mr. MCCRERY. I am. ment when budget targets were not The SPEAKER pro tempore. The Senate and signed by the President, more met. Rule XXI, should it apply to this Clerk will report the motion to recom- than 60,000 families which I have the honor of motion, is a very, very different mit. representing here in the House will be re- PAYGO. It would prevent any Member The Clerk read as follows: quired to pay the AMT when filing their 2007 from offering an amendment that pre- return—an increase of almost 1000 percent Mr. McCrery moves to recommit the bill vents a tax increase without another H.R. 4351 to the Committee on Ways and tax increase. I would understand, and since 2005. Means with instructions to report the same I also support the Democratic majority’s back to the House forthwith with the fol- even strongly support, an interpreta- continuing commitment to responsible fiscal lowing amendment: tion of rule XXI that had the effect of policies. The relief provided in this bill is paid Strike all after the enacting clause and in- requiring spending reductions to offset for by closing tax loopholes that allow hedge sert the following: increases in spending. fund managers and corporate CEOs to use SECTION 1. SHORT TITLE. Further, while I would not nec- offshore tax havens as unlimited retirement This Act may be cited as the ‘‘Tax Increase essarily endorse it, I could understand accounts. That the President and his party Prevention Act of 2007’’. a PAYGO interpretation that requires would side with a few of the wealthiest individ- SEC. 2. EXTENSION OF INCREASED ALTERNATIVE a spending cut or tax increase to offset MINIMUM TAX EXEMPTION AMOUNT. uals over millions of middle class American any reduction in current tax rates, or (a) IN GENERAL.—Paragraph (1) of section an increase in any current tax deduc- families speaks volumes about their misplaced 55(d) of the Internal Revenue Code of 1986 (re- priorities. lating to exemption amount) is amended— tions or credits; but that is not what Mr. UDALL of Colorado. Mr. Speaker, I will (1) by striking ‘‘($62,550 in the case of tax- we’re dealing with here today, Mr. vote for this bill—as I did for a similar measure able years beginning in 2006)’’ in subpara- Speaker. Today, with my motion, we last month—because of the urgent need to graph (A) and inserting ‘‘($66,250 in the case are simply maintaining the Federal protect middle-income families from a massive of taxable years beginning in 2007)’’, and Government’s current take, so to tax increase that will hit them if we do not act (2) by striking ‘‘($42,500 in the case of tax- speak, from the people. to adjust the Alternative Minimum Tax, or able years beginning in 2006)’’ in subpara- Current individual tax rates and poli- graph (B) and inserting ‘‘($44,350 in the case cies have largely been in place as they AMT. of taxable years beginning in 2007)’’. The bill is not quite the same as H.R. 3996, (b) EFFECTIVE DATE.—The amendments are since 2003 and have led to sustained which I voted for and which the House passed made by this section shall apply to taxable increases in revenue to the Federal on November 9th. But it resembles that bill— years beginning after December 31, 2006. Government. In fact, the annualized in- and differs from the version passed by the SEC. 3. EXTENSION OF ALTERNATIVE MINIMUM creases over the last 3 years have been Senate—in one very important respect: it is TAX RELIEF FOR NONREFUNDABLE 14.6 percent, 11.7 percent and 6.7 per- fiscally responsible. PERSONAL CREDITS. cent. (a) IN GENERAL.—Paragraph (2) of section Even if my motion passes and is The Senate has voted for a bill that does 26(a) of the Internal Revenue Code of 1986 (re- not even attempt to offset the costs of chang- lating to special rule for taxable years 2000 eventually enacted, we will again see ing the AMT. through 2006) is amended— increased revenue, it is projected, to I think that should not be our first choice, (1) by striking ‘‘or 2006’’ and inserting the Federal Government next year. because for too long the Bush Administration ‘‘2006, or 2007’’, and Those who wish to apply PAYGO to my

VerDate Aug 31 2005 06:48 Dec 13, 2007 Jkt 069060 PO 00000 Frm 00062 Fmt 7634 Sfmt 0634 E:\CR\FM\A12DE7.051 H12DEPT1 bajohnson on PROD1PC71 with HOUSE December 12, 2007 CONGRESSIONAL RECORD — HOUSE H15381 motion, those who wish to object to my The vote was taken by electronic de- Culberson King (IA) Ramstad motion, are advocating very clearly vice, and there were—yeas 225, nays Davis (KY) King (NY) Regula Davis, David Kingston Rehberg that they want to lock in not only the 191, not voting 15, as follows: Davis, Tom Kirk Reichert largest revenue take in history, but [Roll No. 1152] Deal (GA) Kline (MN) Renzi also the largest tax increase in history. Dent Knollenberg Reynolds YEAS—225 Diaz-Balart, L. Kuhl (NY) Rogers (AL) These tax increases will lead the gov- Diaz-Balart, M. LaHood Abercrombie Grijalva Oberstar Rogers (KY) ernment to collect more than 20 per- Doolittle Lamborn Ackerman Gutierrez Obey Rogers (MI) Drake Latham cent of GDP from its citizens by the Allen Hall (NY) Olver Rohrabacher Dreier LaTourette end of the decade, and far higher in the Altmire Hare Ortiz Ros-Lehtinen Duncan Lewis (CA) Andrews Harman Pallone Roskam years that follow. These tax increases Ehlers Lewis (KY) Arcuri Hastings (FL) Pascrell Royce Emerson Linder will be of such a dramatic magnitude Baca Herseth Sandlin Pastor Ryan (WI) English (PA) LoBiondo that they threaten to bring our econ- Baird Higgins Payne Sali Everett Lucas Baldwin Hill Perlmutter Saxton omy to its knees and render it uncom- Fallin Lungren, Daniel Barrow Hinchey Peterson (MN) Schmidt petitive in the global marketplace. Feeney E. Bean Hirono Pomeroy Sensenbrenner The motion I have offered contains Flake Mack Berkley Hodes Price (NC) Sessions Forbes Manzullo no new spending, no new tax cuts. In- Berman Holden Rahall Shadegg Fortenberry Marchant Berry Holt Rangel stead, it simply prevents a tax in- Fossella McCarthy (CA) Shays Bishop (GA) Honda Reyes crease. That, I submit, is not what rule Foxx McCaul (TX) Shimkus Bishop (NY) Hoyer Richardson Franks (AZ) McCotter Shuster XXI was designed to prevent. And I Blumenauer Inslee Rodriguez Frelinghuysen McCrery Simpson urge the speaker to reject the point of Boren Israel Ross Gallegly McHenry Smith (NE) Boswell Jackson (IL) Rothman order. Garrett (NJ) McHugh Smith (NJ) Boucher Jackson-Lee Roybal-Allard The SPEAKER pro tempore. Does Gerlach McKeon Smith (TX) Boyd (FL) (TX) Ruppersberger Gilchrest McMorris Souder any other Member wish to be heard on Boyda (KS) Jefferson Rush Gingrey Rodgers Stearns the point of order? Brady (PA) Johnson (GA) Ryan (OH) Gohmert Mica Sullivan Braley (IA) Johnson, E. B. Salazar Mr. NEAL of Massachusetts. Mr. Goode Miller (FL) Terry Brown, Corrine Jones (OH) Sa´ nchez, Linda Speaker, I insist on my point of order. Goodlatte Miller (MI) Thornberry Butterfield Kagen T. Granger Moran (KS) Tiahrt The SPEAKER pro tempore. The gen- Capps Kanjorski Sanchez, Loretta Graves Murphy, Tim Tiberi tleman from Massachusetts makes a Capuano Kaptur Sarbanes Hall (TX) Musgrave Turner Cardoza Kennedy Schakowsky point of order that the amendment pro- Hastings (WA) Myrick Upton Carnahan Kildee Schiff posed in the motion violates clause 10 Hayes Nunes Walberg Carney Kilpatrick Schwartz Heller Pearce Walden (OR) of rule XXI by increasing the deficit. Castor Kind Scott (GA) Hensarling Pence Walsh (NY) Pursuant to clause 10 of rule XXI, the Chandler Klein (FL) Scott (VA) Herger Peterson (PA) Wamp Clarke Kucinich Serrano Chair is authoritatively guided by esti- Hobson Petri Weldon (FL) Clay Lampson Sestak Hoekstra Pickering Weller mates from the Committee on the Cleaver Langevin Shea-Porter Hulshof Pitts Westmoreland Budget that the net effect of the provi- Clyburn Lantos Sherman Inglis (SC) Platts Whitfield Cohen Larsen (WA) Shuler sions in the amendment affecting reve- Issa Poe Wicker Conyers Larson (CT) Sires nues would increase the deficit for a Johnson (IL) Porter Wilson (NM) Cooper Lee Skelton Johnson, Sam Price (GA) Wilson (SC) relevant period. Costa Levin Slaughter Jones (NC) Pryce (OH) Wolf Accordingly, the point of order is Costello Lewis (GA) Smith (WA) Jordan Putnam Young (AK) Courtney Lipinski Snyder sustained and the motion is not in Keller Radanovich Young (FL) order. Cramer Loebsack Solis Crowley Lofgren, Zoe Space NOT VOTING—15 Mr. MCCRERY. Since that was an Cuellar Lowey Spratt awfully quick ruling, Mr. Speaker, I Cummings Lynch Stark Becerra Hinojosa Miller, Gary most respectfully do appeal the ruling Davis (AL) Mahoney (FL) Stupak Carson Hooley Neugebauer Cubin Hunter Paul of the Chair because this may be the Davis (CA) Maloney (NY) Sutton Davis (IL) Markey Tanner Ferguson Jindal Tancredo only opportunity we have to veer from Davis, Lincoln Marshall Tauscher Gordon Matheson Wu DeFazio Matsui Taylor this tax increase interpretation so that ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE DeGette McCarthy (NY) Thompson (CA) we can clear a bill that the Senate will The SPEAKER pro tempore (during pass and the President will sign. Delahunt McCollum (MN) Thompson (MS) DeLauro McDermott Tierney the vote). Members are advised there The SPEAKER pro tempore. The Dicks McGovern Towns are 2 minutes left in this vote. question is, Shall the decision of the Dingell McIntyre Tsongas Chair stand as the judgment of the Doggett McNerney Udall (CO) b 1848 Donnelly McNulty Udall (NM) House? Doyle Meek (FL) Van Hollen Mrs. BLACKBURN, Ms. GRANGER, MOTION TO TABLE OFFERED BY MR. NEAL OF Edwards Meeks (NY) Vela´ zquez Ms. ROS-LEHTINEN, and Messrs. ROG- MASSACHUSETTS Ellison Melancon Visclosky ERS of Alabama, PICKERING, Mr. NEAL of Massachusetts. Mr. Ellsworth Michaud Walz (MN) Emanuel Miller (NC) Wasserman HERGER, and EHLERS changed their Speaker, I move to table the motion to Engel Miller, George Schultz vote from ‘‘yea’’ to ‘‘nay.’’ appeal. Eshoo Mitchell Waters Mrs. MALONEY of New York, Ms. The SPEAKER pro tempore. The Etheridge Mollohan Watson SCHWARTZ, and Messrs. ROTHMAN, question is on the motion to table. Farr Moore (KS) Watt The question was taken; and the Fattah Moore (WI) Waxman TIERNEY, CLYBURN, ORTIZ, and Filner Moran (VA) Weiner HARE changed their vote from ‘‘nay’’ Speaker pro tempore announced that Frank (MA) Murphy (CT) Welch (VT) the ayes appeared to have it. Giffords Murphy, Patrick Wexler to ‘‘yea.’’ Mr. MCCRERY. Mr. Speaker, I object Gillibrand Murtha Wilson (OH) So the motion to table was agreed to. Gonzalez Nadler Woolsey The result of the vote was announced to the vote on the ground that a Green, Al Napolitano Wynn quorum is not present and make the Green, Gene Neal (MA) Yarmuth as above recorded. point of order that a quorum is not The SPEAKER pro tempore. The NAYS—191 present. question is on the passage of the bill. The SPEAKER pro tempore. Evi- Aderholt Blunt Buyer The question was taken; and the Akin Boehner Calvert Speaker pro tempore announced that dently a quorum is not present. Alexander Bonner Camp (MI) The Sergeant at Arms will notify ab- Bachmann Bono Campbell (CA) the ayes appeared to have it. sent Members. Bachus Boozman Cannon Mr. HULSHOF. Mr. Speaker, on that Pursuant to clause 8 and clause 9 of Baker Boustany Cantor I demand the yeas and nays. Barrett (SC) Brady (TX) Capito rule XX, this 15-minute vote on the Bartlett (MD) Broun (GA) Carter The yeas and nays were ordered. motion to table will be followed by a 5- Barton (TX) Brown (SC) Castle The SPEAKER pro tempore. This minute vote on the passage of the bill, Biggert Brown-Waite, Chabot will be a 5-minute vote. if ordered, and if arising without fur- Bilbray Ginny Coble The vote was taken by electronic de- Bilirakis Buchanan Cole (OK) ther debate or proceedings in recom- Bishop (UT) Burgess Conaway vice, and there were—yeas 226, nays mittal. Blackburn Burton (IN) Crenshaw 193, not voting 13, as follows:

VerDate Aug 31 2005 05:07 Dec 13, 2007 Jkt 069060 PO 00000 Frm 00063 Fmt 7634 Sfmt 0634 E:\CR\FM\K12DE7.131 H12DEPT1 bajohnson on PROD1PC71 with HOUSE H15382 CONGRESSIONAL RECORD — HOUSE December 12, 2007 [Roll No. 1153] Diaz-Balart, M. Kuhl (NY) Reichert CHILDREN’S HEALTH INSURANCE Doolittle LaHood Renzi PROGRAM REAUTHORIZATION YEAS—226 Drake Lamborn Reynolds Abercrombie Gutierrez Ortiz Dreier Lampson Rogers (AL) ACT OF 2007—VETO MESSAGE Ackerman Hall (NY) Pallone Ehlers Latham Rogers (KY) FROM THE PRESIDENT OF THE Allen Hare Pascrell Emerson LaTourette Rogers (MI) UNITED STATES (H. DOC. NO. 110– English (PA) Lewis (CA) Altmire Harman Pastor Rohrabacher 80) Andrews Hastings (FL) Payne Everett Lewis (KY) Ros-Lehtinen Fallin Linder Arcuri Herseth Sandlin Pelosi Roskam Feeney LoBiondo The SPEAKER pro tempore laid be- Baca Higgins Perlmutter Royce Flake Lucas fore the House the following veto mes- Baird Hill Peterson (MN) Ryan (WI) Forbes Lungren, Daniel Baldwin Hinchey Pomeroy Sali sage from the President of the United Fortenberry E. Barrow Hirono Price (NC) Saxton States: Fossella Mack Becerra Hodes Rahall Schmidt Berkley Holden Foxx Manzullo To the House of Representatives: Rangel Franks (AZ) Marchant Sensenbrenner Berman Holt Reyes Sessions I am returning herewith without my Berry Honda Frelinghuysen McCarthy (CA) Richardson Shadegg Bishop (GA) Hoyer Gallegly McCaul (TX) approval H.R. 3963, the ‘‘Children’s Rodriguez Shays Bishop (NY) Inslee Garrett (NJ) McCotter Health Insurance Program Reauthor- Ross Shimkus Blumenauer Israel Gerlach McCrery Rothman Shuster ization Act of 2007.’’ Like its prede- Boswell Jackson (IL) Gilchrest McHenry Roybal-Allard cessor, H.R. 976, this bill does not put Boucher Jackson-Lee Gingrey McHugh Simpson Ruppersberger Boyd (FL) (TX) Gohmert McKeon Smith (NE) poor children first and it moves our Rush Boyda (KS) Jefferson Goode McMorris Smith (NJ) country’s health care system in the Ryan (OH) Brady (PA) Johnson (GA) Goodlatte Rodgers Smith (TX) wrong direction. Ultimately, our Na- Braley (IA) Johnson, E. B. Salazar Granger Mica Souder ´ Brown, Corrine Jones (OH) Sanchez, Linda Graves Miller (FL) Stearns tion’s goal should be to move children Butterfield Kagen T. Hall (TX) Miller (MI) Sullivan who have no health insurance to pri- Capps Kanjorski Sanchez, Loretta Hastings (WA) Moran (KS) Terry vate coverage—not to move children Sarbanes Hayes Murphy, Tim Capuano Kaptur Thornberry who already have private health insur- Cardoza Kennedy Schakowsky Heller Musgrave Tiahrt Carnahan Kildee Schiff Hensarling Myrick Tiberi ance to government coverage. As a re- Carney Kilpatrick Schwartz Herger Nunes Turner sult, I cannot sign this legislation. Castor Kind Scott (GA) Hobson Pearce Upton Hoekstra Pence The purpose of the State Children’s Chandler Klein (FL) Scott (VA) Walberg Hulshof Peterson (PA) Clarke Kucinich Serrano Walden (OR) Health Insurance Program (SCHIP) was Inglis (SC) Petri Clay Langevin Sestak Walsh (NY) to help low-income children whose Cleaver Lantos Shea-Porter Issa Pickering Johnson (IL) Pitts Wamp families were struggling, but did not Clyburn Larsen (WA) Sherman Weldon (FL) Cohen Larson (CT) Shuler Johnson, Sam Platts qualify for Medicaid, to get the health Jones (NC) Poe Weller care coverage that they needed. My Ad- Conyers Lee Sires Westmoreland Cooper Levin Skelton Jordan Porter Whitfield ministration strongly supports reau- Costa Lewis (GA) Slaughter Keller Price (GA) Wicker thorization of SCHIP. That is why in Costello Lipinski Smith (WA) King (IA) Pryce (OH) Wilson (NM) Courtney Loebsack Snyder King (NY) Putnam February of this year I proposed a 5– Kingston Radanovich Wilson (SC) Cramer Lofgren, Zoe Solis year reauthorization of SCHIP and a 20 Kirk Ramstad Wolf Crowley Lowey Space Kline (MN) Regula Young (AK) percent increase in funding for the pro- Cuellar Lynch Spratt Knollenberg Rehberg Young (FL) gram. Cummings Mahoney (FL) Stark Davis (AL) Maloney (NY) Stupak NOT VOTING—13 Some in the Congress have sought to Davis (CA) Markey Sutton Carson Hooley Neugebauer spend more on SCHIP than my budget Davis (IL) Marshall Tanner Cubin Hunter Paul proposal. In response, I told the Con- Davis, Lincoln Matsui Tauscher Duncan Jindal DeFazio McCarthy (NY) Taylor Tancredo gress that I was willing to work with Ferguson Matheson DeGette McCollum (MN) Thompson (CA) its leadership to find any additional Delahunt McDermott Hinojosa Miller, Gary Thompson (MS) DeLauro McGovern funds necessary to put poor children Tierney Dicks McIntyre ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE first, without raising taxes. Towns Dingell McNerney The SPEAKER pro tempore (during Tsongas The leadership in the Congress has Doggett McNulty Udall (CO) the vote). Members are advised there Donnelly Meek (FL) refused to meet with my Administra- Doyle Meeks (NY) Udall (NM) are 2 minutes left in this vote. tion’s representatives. Although they Edwards Melancon Van Hollen ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Vela´ zquez claim to have made ‘‘substantial Ellison Michaud The SPEAKER pro tempore (during changes’’ to the legislation, H.R. 3963 is Ellsworth Miller (NC) Visclosky Emanuel Miller, George Walz (MN) the vote). Members are advised there is essentially identical to the legislation Engel Mitchell Wasserman 1 minute left in this vote. that I vetoed in October. The legisla- Eshoo Mollohan Schultz Waters tion would still shift SCHIP away from Etheridge Moore (KS) b 1856 Farr Moore (WI) Watson its original purpose by covering adults. Fattah Moran (VA) Watt So the bill was passed. It would still include coverage of many Filner Murphy (CT) Waxman The result of the vote was announced individuals with incomes higher than Frank (MA) Murphy, Patrick Weiner the median income in the United Giffords Murtha Welch (VT) as above recorded. Gillibrand Nadler Wexler A motion to reconsider was laid on States. It would still result in govern- Gonzalez Napolitano Wilson (OH) the table. ment health care for approximately 2 Gordon Neal (MA) Woolsey million children who already have pri- Green, Al Oberstar Wu Green, Gene Obey Wynn f vate health care coverage. The new Grijalva Olver Yarmuth bill, like the old bill, does not respon- REPORT ON RESOLUTION PRO- sibly offset its new and unnecessary NAYS—193 VIDING FOR CONSIDERATION OF spending, and it still raises taxes on Aderholt Bonner Cannon H.J. RES. 69, FURTHER CON- working Americans. Akin Bono Cantor TINUING APPROPRIATIONS, FIS- Alexander Boozman Capito Because the Congress has chosen to Bachmann Boren Carter CAL YEAR 2008 send me an essentially identical bill Bachus Boustany Castle Ms. SLAUGHTER, from the Com- that has the same problems as the Baker Brady (TX) Chabot Barrett (SC) Broun (GA) Coble mittee on Rules, submitted a privi- flawed bill I previously vetoed, I must Bartlett (MD) Brown (SC) Cole (OK) leged report (Rept. No. 110–492) on the veto this legislation, too. I continue to Barton (TX) Brown-Waite, Conaway resolution (H. Res. 869) providing for stand ready to work with the leaders of Bean Ginny Crenshaw Biggert Buchanan Culberson consideration of the joint resolution the Congress, on a bipartisan basis, to Bilbray Burgess Davis (KY) (H.J. Res. 69) making further con- reauthorize the SCHIP program in a Bilirakis Burton (IN) Davis, David tinuing appropriations for the fiscal way that puts poor children first; Bishop (UT) Buyer Davis, Tom year 2008, and for other purposes, which moves adults out of a program meant Blackburn Calvert Deal (GA) Blunt Camp (MI) Dent was referred to the House Calendar and for children; and does not abandon the Boehner Campbell (CA) Diaz-Balart, L. ordered to be printed. bipartisan tradition that marked the

VerDate Aug 31 2005 06:48 Dec 13, 2007 Jkt 069060 PO 00000 Frm 00064 Fmt 7634 Sfmt 0634 E:\CR\FM\A12DE7.049 H12DEPT1 bajohnson on PROD1PC71 with HOUSE