WASHINGTON, Dec. 8 U.S. President George W. Bush Saturday urged Congress to act on fixing a potential middle-class tax problem and reform mortgage lending laws.
Bush used his weekly radio address to congratulate the Senate for passing legislation to prevent an unexpected tax bill for millions of middle-income Americans, who could get hit with a bigger federal tax liability this year because a decades old law -- the Alternative Minimum Tax, intended to force the wealthy to pay taxes -- was not indexed to inflation.
"As a result, the AMT's higher tax burden is creeping up on more and more middle-class families, and as many as 25 million Americans would be subject to the AMT," Bush said.
He accused the House of delaying the AMT fix, although the House has already passed legislation to address the problem.
Bush also touted his proposal -- announced this week -- to provide some federal help for homeowners who face foreclosure as a result of the subprime mortgage crisis. He said Congress needs to pass legislation to modernize the Federal Housing Administration, and "temporarily reform the tax code to help homeowners refinance during this time of housing market stress."
Copyright 2007 by UPI
