Statement by Senator Mark Pryor On Protecting Middle-Class Families from the Alternative Minimum Tax
The Senate Thursday evening overwhelmingly passed legislation to protect 19 million Americans from being subject to the Alternative Minimum Tax (AMT). The AMT was established to ensure that high-income taxpayers paid a minimum of federal taxes; however, AMT exemptions were never indexed for inflation like regular income tax. As a result, the AMT has ensnared an increasing number of taxpayers it was never intended to cover. The legislation would "patch" the AMT for one year. Senator Pryor made the following statement in support of the bill:
Americans should not have to foot higher tax bills on top of high gas prices, escalating health care costs and many other increasing cost-of-living expenses. This stealth tax is intended to prevent wealthy individuals from avoiding taxes, but today it has crept up on thousands of unsuspecting middle-class families. I'm pleased the Senate has worked in a bipartisan manner to avoid this undue tax burden. In the near future, I hope we will end the practice of "1-year patches" and fix the problem permanently and responsibly.