Timothy H. Bishop: “I rise tonight as a proud cosponsor of the Foreclosure Tax Relief Act. I commend its cosponsor, my colleague from Ohio…”

“I rise tonight as a proud cosponsor of the Foreclosure Tax Relief Act. I commend its cosponsor, my colleague from Ohio, Mr. Space, as well as the chairman of the Ways and Means Committee, Mr. Rangel, for agreeing to take up legislation that would give a tax break to middle-class homeowners who have been caught up in the subprime mortgage fallout. Nearly 3,000 homeowners in Suffolk County, New York alone, that's one out of every 180 homes in my district, have joined 2.2 million families nationwide whose subprime loans have already failed or will end in foreclosure. Adding insult to injury, they face massive tax bills once any portion of their mortgage is cancelled. The IRS treats that forgiven debt as income and can even tack on interest and penalties. In response to this unfair phantom tax, the Foreclosure Tax Relief Act would set the tax exclusion for middle-class families up to $50,000 in forgiven debt on first mortgages and primary residences. Therefore, I urge my colleagues to support foreclosure tax relief legislation.”