|
WASHINGTON— U.S. Rep. Bill Pascrell, Jr. (D-NJ-08) a member of the House Committee on Ways and Means today voted to protect 25 million middle-class American families from paying the Alternative Minimum Tax (AMT). The measure, which was approved in the House of Representatives by a vote of 393-30, will provide $62 billion in AMT relief to ease the strain of rising gas and food prices.
If this legislation is not implemented, the number of families paying the AMT would skyrocket from 20,000 in 2005 to over 75,000 in 2008 in New Jersey’s 8th Congressional District alone.
“Protecting millions of middle-class families from being hit by an AMT expansion is a top priority in this unsteady economic climate,’ stated Pascrell. “The AMT relief that passed in the House today did not come in a perfect package, but it came in a timely package that will have positive short term results.”
The AMT was put into place decades ago to ensure that the wealthiest families did not escape paying taxes altogether. It was never adjusted to keep up with inflation and has grown to be such a problem that it now threatens teachers and firefighters – a far cry from its original intent.
Since becoming a member of the Ways and Means Committee in 2007, Pascrell has worked closely with the Committee to provide AMT relief for millions of middle-class families without increasing the national debt. This summer the House passed an AMT fix that was fully paid for and compliant with strict pay-as-you-go budget discipline to ensure long-term American economic growth. Offsets included requiring oil companies to pay their fair share for oil in the Gulf of Mexico and closing a tax loophole on CEO-deferred compensation paid by offshore companies.
Unfortunately, due to the stubborn fiscal irresponsibility of Senate Republicans and the Bush Administration, the House effort to implement a responsible AMT fix was blocked. In the interest of passing legislation that will protect 25 million middle-income families from being hit with a tax increase next year, the previously approved offsets were removed from the bill.
“I remain committed to overhauling the AMT so that Congress does not need to patch it year after year. And I am committed to doing so in a fiscally responsible way that will not burden future generations. The AMT has had enough unintended consequences already,” concluded Pascrell.
###
|
