Today, Congressman Dave Loebsack voted in strong support of
legislation to help families unfairly hit by the ISO-AMT tax, including June
and Ron Speltz of Ely, Iowa.
Congressman Loebsack has championed this tax reform and played a
critical role in getting this provision included in the Renewable Energy and
Job Creation Act, which was approved by the House 263-160. This legislation will also help expand the
production and use of renewable energy, create new green color jobs in Iowa, and extend vital
forms of tax relief to middle class families.
“For too long hard working Iowa families have been struggling to make
ends meet in part because of an unfair, inequitable tax system,” said
Congressman Loebsack. “I understand the
daily struggle families across Iowa, including the Speltz family, have
encountered and I’m happy that we have finally been able to pass legislation
that will provide much needed relief and end the unfair collection of taxes on
unrealized income. It is my hope the
Senate will now move quickly to pass this legislation and send it to the
President’s desk.”
Thousands of families in Iowa, including the Speltz family, have been
forced into financial ruin because of the strain placed upon them by incentive
stock option/alternative minimum tax (ISO-AMT).
The reforms included in the legislation will provide relief to families
unfairly required to pay this tax on unrealized financial gains.
“The ISO AMT tax on phantom income has devastated our family
of six for eight years; our two youngest children don’t know any life other
than the life we’ve lived under this cloud of financial hardship and stress,”
said June Speltz of Ely, Iowa. “Just a couple months ago, we were told
that the IRS will not delay any longer, but will soon move forward to collect
the full tax, interest and penalties owed. The IRS will seize our home, small
retirement accounts, and my husband Ron’s wages will be garnished to the point
we that we won’t be able to afford to pay for an apartment or buy food – all to
pay more AMT tax on income we never received.”
“The passage this week of the ISO relief provision in the
House, cosponsored by Rep. Loebsack, is happening just in time to bring relief
to our family and many other Iowa
families,” added Ron Speltz. “I am so grateful to Congressman Loebsack,
whose active support for this legislation and tireless work on behalf Iowa families is helping
to end this long nightmare once and for all. Now that this much-needed
relief has passed the House, my family and I are hopeful that with the strong
support from Senator Grassley, the Senate will quickly take the same
action. We are so thankful for the commitment to justice and fairness,
and care for their constituents, shown by Rep. Loebsack and Senator Grassley
and their staff.”
In response to the Speltz’s struggle and the difficulties
faced by other Iowa
families, Congressman Loebsack has worked diligently with the Chairman and
members of the House Ways
and Means Committee to revise and update the ISO-AMT.
“The Ways and Means Committee greatly appreciates
Congressman Loebsack’s efforts to reverse the damaging effect the ISO-AMT has
on families across the country,” said Congressman Charles Rangel, Chairman of
the House Ways
and Means Committee. “Mr. Loebsack’s leadership on this issue played a
valuable role in the Committee’s ability to include an ISO-AMT fix in the
legislation passed in Congress today. I am certain Mr. Loebsack will
continue to champion this effort until the law is changed and families are no
longer burdened by this unfair tax.”
Other provisions included in the legislation are:
- Provide up to 30 million
homeowners with property tax relief
- Help the families of 13
million children by expanding the child tax credit to those earning $8,500
a year (from $12,050 in current law)
- Help 4.5 million families
better afford college with the tuition deduction
- Save 3.4 million teachers
money with a deduction for classroom expenses
- Provide 22,000 American
troops in combat with tax relief under the Earned Income Tax Credit
- Six-year extension of the
investment tax credit (ITC) for solar energy
- Three-year extension of
the production tax credit (PTC) for energy derived from biomass,
geothermal, hydropower, landfill gas and solid waste
- Incentives for the
production of homegrown renewable fuels, such as biodiesel and renewable
diesel, and for the installation of E-85 pumps for consumers to fill up
flex-fuel vehicles
The bill does not add to the national debt, instead, it
closes loopholes that allow corporations and executives to avoid U.S. taxes by
shipping jobs and investment overseas.
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