Rep. Walz Stands up for Fiscal Responsibility

Press Release

REP. WALZ STANDS UP FOR FISCAL RESPONSIBILITY

Today, Congressman Walz voted for fiscal responsibility and opposed legislation that will add $51 billion to the national debt next year. The legislation provided a one-year fix for the Alternative Minimum Tax (AMT). Walz said he voted against it because Congress failed to pay for the bill.

Under rules put in place by the new leadership in Congress, every bill passed by the House this year is supposed to comply with the pay-as-you-go rule, or PAYGO. The Senate-passed AMT legislation, however, does not adhere to PAYGO and merely adds the cost of a one-year AMT fix to the national debt.

"I am for middle class tax relief. I am also for restoring fiscal responsibility in Washington. We can do both, which is why I voted twice this year for AMT bills that provide middle-class tax relief in a fiscally responsible way. My colleagues on both sides of the aisle caved into pressure from President Bush and wealthy special interests and passed a so-called middle class tax bill that mortgages our children's future for short term political gratification," said Congressman Tim Walz. "This is nothing more than a shell game that passes on a "tax" in the form of increased debt to our children and grandchildren."

The AMT legislation would extend for one year AMT relief for nonrefundable personal credits and increases the AMT exemption amount to $66,250 for joint filers and $44,350 for individuals. The original House-passed version financed the AMT relief by forcing millionaire hedge fund money managers to play by the same rules as middle class Americans. The AMT was put into place nearly forty years ago to ensure that the wealthiest families did not escape paying taxes altogether. The Senate-passed version eliminated provisions related to hedge fund managers.

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