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Boyda Votes to Protect Kansas Families from "Surprise" Tax Hike

TODAY'S VOTE TO REIN IN ALTERNATIVE MINIMUM TAX FOLLOWS A VOTE EARLIER THIS WEEK TO CUT TAXES ON MILITARY FAMILIES

WASHINGTON, D.C. –
For the second time in a week, Congresswoman Nancy Boyda (Kansas Second District) has voted to dramatically ease the burden of taxes on middle-class families.

The U.S. House of Representatives today passed the Temporary Tax Relief Act of 2007, H.R. 3996, which will protect 23 million middle-class families from paying sharply higher taxes next year due to the Alternative Minimum Tax (AMT).

"Without action by Congress, over 60,000 taxpayers in the Second District will face an enormous tax increase next year – and most have no idea it is coming," Rep. Boyda said.

The AMT was originally enacted in 1969 to ensure that the wealthiest earners in America could not escape paying their fair share of taxes by exploiting tax shelters and loopholes. Unfortunately, because AMT income eligibility levels were not indexed to inflation, the tax has hit more and more middle-class families over the years.

In the 2005 tax year, the AMT impacted 3,460 families in the Kansas Second District. Without the Temporary Tax Relief Act, an estimated 66,572 Second District families would face the AMT in 2007 – an 1800% increase.

Congress has, in the past, applied temporary patches to the AMT to prevent the tax from striking the middle class, but the latest patch expires this year. The Temporary Tax Relief Act restores the AMT's original intent: to apply only to taxpayers with the very highest incomes.

The bill pays for itself by closing a tax loophole that allows multi-millionaire money managers to pay a lower tax rate than teachers, firefighters, and nurses.

The passage of the Temporary Tax Relief Act comes just days after the House of Representatives unanimously approved the Heroes Earnings Assistance and Relief Tax (HEART) Act, which significantly cuts taxes on military families. The HEART Act included language authored by Rep. Boyda to permanently end the "Soldier Tax" – a restriction on the eligibility of military families to receive the Earned Income Tax Credit (EITC).

Rep. Boyda said, "So many Kansas families are struggling in today's economy. The last thing they need is to hand over more of their money to Washington through taxes. Fixing the AMT and ending the Soldier Tax means that middle-class families can keep more of their dollars right here in Kansas."