Washington, D.C. - Today, the House of Representatives passed a bill that will prevent 23 million new Americans from paying the alternative minimum tax, at an average cost of $2,000 per family, said U.S. Congressman Kevin Brady (R-The Woodlands).    It passed with overwhelming Republican support after Democrats  were  divided over proposals to increase other taxes to keep revenue coming into the federal budget. The bill now heads to the President’s desk just days before the end of the tax year.

“The Alternative Minimum Tax is a mistake and was never intended to affect middle class families.    I and others tried to repeal the tax in 1999 but unfortunately President Clinton vetoed it, and now it is scheduled to hit more families, ” explained Brady. “ I am pleased we are freezing it for another year.    However, my goal is to repeal it once and for all - and do it by reducing unnecessary spending in other areas so we don’t make it hard to balance the federal budget.”

Brady criticized waiting until the last day of the year to pass the AMT freeze because now many taxpayers will have their tax refunds delayed next year.

“This should have been a priority for Congress rather than a last - minute fix. Taxpayers shouldn’t have to wait longer to get their own money back from Uncle Sam, ” said Brady, who sits on the tax-writing Ways & Means Committee.

Background:    The  A lternative  M inimum  T ax was created in 1969 to ensure 155 of the country’s wealthiest individuals in America didn’t escape the income tax.    But it was never indexed for inflation, each year it threatens to raise taxes on millions of American families, and each year Congress must apply a “patch” to prevent the increase. 

Last year, 5,637 taxpayers in Brady’s Eighth Congressional District of Texas  paid the AMT, and 42,233 more would have been faced with it in 2007 had Congress not acted. 

Congressman Brady holds the leadership post of Deputy Whip and serves on the Ways & Means Committee, which has  jurisdiction over 2/3 of the federal budget including taxes, Social Security, Medicare, international trade and welfare.  He serves on the Social Security and Trade subcommittees.