American families are working harder and finding it more difficult to get ahead. Congressman Roskam believes in supporting policies to help hard working families get to the next level of success. He believes we can do this by lowering the tax burden on families and job-creating businesses; eliminating the waste of taxpayer money on Washington pork; and forcefully addressing our nation’s long-term fiscal problems. Congressman Roskam will continue to fight for these principles for all Illinois 6th District families and small businesses.

Death Tax
Congressman Roskam is a cosponsor of many bills that permanently repeal the estate tax, which provides tax relief to Illinois small business owners. Many families are in need of the elimination of this tax so they are able to pass their family business onto their children without fear of the federal government forcing them to sell it because they cannot afford the taxes. In fact, the NFIB reports that one-third of small businesses have to sell outright or liquidate part of their firm to pay death taxes. This is counter to our nation’s tradition of promoting family owned businesses.

Unless Congress repeals the sunset, those who pass away after December 31, 2010 will face a devastating estate tax of up to 55%. Family businesses form the foundation of our economy -- and the fact that 41% of the death taxes collected are from estates worth less than $1 million which shows how patently unfair it is. Congressman Roskam will continue to support legislation that will provide tax relief for those small business and citizens who serve as the major source of economic growth in this country.

Research and Development Tax Credit
Congressman Roskam is an original cosponsor of legislation which makes the Research and Development Tax Credit permanent. The United States is the world leader in research and development and we do not want to lose our innovative edge to countries such as India and China who are quickly catching up.  The lack of certainty regarding the availability of future research and development tax credits can lead some companies to abandon additional research, or move to countries that do offer incentives to innovate. Congressman Roskam will continue to support this credit to ensure U.S. companies are able to obtain funds to innovate and compete in the growing global market.

Capital Gains and Dividends
Congressman Roskam is committed to lowering the capital gains tax to spur investment.  Investment capital should not reside in Washington, it should be in the hands of entrepreneurs who can use it to start new businesses, and expand existing ones. 

Alternative Minimum Tax (AMT)
In 1969 the Alternative Minimum Tax was designed as a stop-gap to target the 155 wealthiest individuals in the country. Due to missed opportunities during changes to tax law in the 1980s and 1990s, and a presidential veto in 1999, the AMT has never been indexed to inflation.

Over the years more and more taxpayers have been subjected to this tax that arbitrarily and sometimes unpredictably deprives them of the tax preferences they have planned for, and negates the very benefits that have been successful in igniting the engines of economic growth. That is why Congressman Roskam supported the successful passage of a clean AMT patch in December 2007. This legislation will keep over 70,000 taxpayers in Illinois’ 6th Congressional District from falling into the AMT.

Congressman Roskam is in strong support of extending the AMT patch, thus “freezing” the AMT in place with inflation. In the long term, as a co-sponsor of H.R. 1366, Congressman Roskam supports the repeal of the Alternative Minimum Tax. Abolishing the AMT will not only rid our tax code of an arcane and unfair policy, but will also remove a significant barrier for economic growth in the American economy.

Housing Relief
The value of many Americans most important asst, their home, declined in 2007. In response, Congressman Roskam supported tax measures that would provide needed relief to his constituents:

• In October 2007, Congressman Roskam voted in favor of H.R. 3648, the Mortgage Forgiveness Debt Relief Act, which shields mortgage write-offs from taxation and extends the current-law exclusion of mortgage insurance premiums from gross income for tax purposes. Under current law, gross income for tax purposes includes such income that is realized by a debtor from the discharge of indebtedness.  For example, if a taxpayer owns a home subject to a $350,000 mortgage debt, and if a creditor forecloses and sells the home for $300,000 in satisfaction of that debt, the taxpayer effectively realizes $50,000 in gross income.  H.R. 3648 remedies this state of affairs by allowing exclusion from gross income such a discharge of indebtedness on a taxpayer’s principal home.
• In October 2007, Congressman Roskam became an original cosponsor of the Homeowners’ Property Tax Relief Act to ensure that hard-working Illinois families are not hit with higher taxes under the AMT. Under current law, taxpayers who itemize their federal tax returns and are not affected by the AMT are able to deduct their property taxes. However, taxpayers who have tax liability under the AMT cannot deduct property taxes from their federal tax liability. The Homeowners’ Property Tax Relief will allow taxpayers to deduct the cost of their property taxes from their federal income tax liability even if they are subject to the AMT. If the AMT patch was not implemented in 2007, approximately 71,371 tax returns in Illinois’ 6th Congressional District would have potentially be subjected to the higher rates of the AMT, up from 9,000 in 2006.
• In Fall 2007, Congressman Roskam became an original cosponsor of the Homeowners’ Exemption Update Act of 2007. While the average value of an American home is up 104%, middle class homeowners in high-cost areas are handed a tax bill when they sell their homes because the home ownership exemption is still stuck at $250,000 for individuals and $500,000 for a couple. This exemption has not been updated since 1997.  This bill will ensure homeowners are not being pushed into higher tax brackets by raising the homeownership exemption to $500,000/individual and $1 million/couple.