In the early morning hours of Saturday, December 9^th, Representative Michael Burgess (R-TX 26) voted in favor of the passage of H.R. 6111, the Tax Relief and Health Care Act of 2006, at the busy end of the 109^th Congress.

As part of the usual last minute flurry of activity before Congress adjourned for the year, the U.S. House and Senate passed the Tax Relief and Health Care Act of 2006 (H.R. 6111). Approved in the House by a bipartisan vote of 367 – 45, H.R. 6111 accomplished three major goals:

1. Extensions of critical tax relief for working families and small businesses,
2. Reforms and improvements to our health care system, and
3. Provisions encouraging new energy exploration.

Tax Deductions

H.R. 6111 extends tax deductions for up to $4,000 in higher education expenses and deductions for up to $250 in teachers' out-of-pocket classroom expenses. It extends state and local sales tax deductions and includes important tax credits for small businesses seeking to employ welfare recipients. It also includes critical tax relief for research and development.

Health Care

H.R. 6111 expands and improves upon Health Savings Accounts, a critical tool that is revolutionizing the way Americans pay for health care. HSAs are tax-free which makes contributions to them tax-deductible, interest earned within each account is tax-free, and withdrawals are not taxed if they are used to pay for qualified medical expenses. HSAs can be used for medical expenses not covered by your insurance policy, including: insurance premiums, prescription drug costs, long-term care insurance, Medicare expenses, and even dental and orthodontic care. H.R. 6111 increases contribution limits and allows for roll-overs from IRAs into HSAs.

Gas Prices

H.R. 6111 encourages American companies to develop oil and gas from deep ocean reserves off the Outer Continental Shelf (OCS). This is another good step in the effort to lower energy costs and reduce America's dependence on foreign oil. The OCS defined area (set aside in H.R. 6111) contains 1.26 billion barrels of oil and 5.8 trillion cubic feet of natural gas. The natural gas supply alone would be enough to heat and cool nearly 6 million homes for 15 years.

This overarching bill keeps taxes down, improves access and the affordability of health care coverage and places America firmly on the road toward energy independence.