Alt. Minimum Tax

Normally, I do not include an entire press releases from an elected official but I believe this message from the desk of Congresswoman Ginny Brown-Waite needs to be seen in its entirety by the public. This one-year patch on the Alternative Minimum Tax is welcome relief to the middle class tax payer who is getting caught up in our antiquated tax system.

Stopping Democrat-Led Tax Increases and Fighting to Keep Your Taxes Low

The Alternative Minimum Tax (AMT) for individuals was originally enacted to ensure that high-income taxpayers pay at least a minimum amount of federal taxes. The AMT functions as a parallel tax system to the regular income tax. Taxpayers calculate their regular income tax and then calculate their AMT. If their AMT liability is larger than their regular income tax liability, then they must pay the AMT. However, the AMT is not indexed for inflation, and this factor, combined with the recent reductions in the regular income tax, has greatly expanded the impact of the AMT. The number of taxpayers subject to the AMT would have increased from 3.5 million in 2006 to 23 million in 2007.

On December 19, 2007, after numerous bi-partisan negotiations, the House passed the final version of a one-year AMT patch. I was proud to support passage of this legislation, which prevents more than 23 million Americans from being hit with this outdated tax provision. You will also be happy to know that Republicans fought to ensure that the Democrat proposed $55.7 billion tax increase did not make it into the final version of the bill, which was signed into law by President Bush on December 26, 2007.

There is no doubt that our current tax code is antiquated, confusing, and cumbersome. Each year, Americans spend too much time navigating this complex labyrinth, with the result often being a tremendous burden on their time and hard-earned money. Some groups estimate that Americans will spend 3.5 billion hours individually, or 26 hours per household, filing their taxes. Additionally, individuals and businesses spend a staggering $250 billion each year to remain in compliance with tax laws. The bottom line is that Americans deserve a more clear and efficient tax system.

Since coming to Congress in 2003, I have made simplification of the tax code one of my highest priorities. Therefore, I applaud the efforts of those like Senator Ron Wyden (D-OR) and the Cleanse the Code Coalition, toward achieving tax fairness for millions of Americans. Given the divisive nature of tax reform, bipartisan support will be necessary in order to accomplish this goal. I look forward to working with my colleagues in Congress to ensure that this occurs, and you can rest assured that I will keep your concerns in mind.