Wilson Resists Democrats' Attempt to Raise Taxes
Tax Increases for Businesses Disguised as AMT relief
Congresswoman Heather Wilson (R-NM) supports a stand-alone Alternative Minimum Tax patch that provides relief for those never intended to be affected by this tax. Wilson voted against the Alternative Minimum Tax Relief Act, a Democrat bill that was under consideration last night to temporarily patch the AMT for this tax year while raising taxes on businesses.
According to Wilson, it is the tax cuts of 2001 and 2003 that have kept the U.S. economy strong. The U.S. economy has grown 2.8% every year since 2001. Real GDP grew 3.9% in the third quarter of 2007. U.S. Treasury revenues are at an all time high. The federal budget deficit is decreasing. Over 8 million jobs have been added since August 2003, and unemployment is at a low of 4.7%.
"The Democrats continue to attempt to raise taxes on the American people," said Wilson. "Americans deserve an AMT fix, not tax increases."
The Alternative Minimum Tax was never adjusted for inflation and it now threatens to affect middle income earners, something it was never intended to do. The Democrat proposal to fix this problem for one year includes a permanent increase in taxes for businesses.
"Increasing taxes on businesses is not the answer. This legislation will be a huge setback for those American businesses that compete abroad," said Wilson. "I urge Congress to pass a clean AMT fix."
Under Republican leadership, Congress passed a repeal of the AMT in 1999, which was vetoed by President Clinton. Republican-led Congresses enacted an AMT patch by June of every year since 1999. This year's delay has prompted the IRS to issue serious warnings regarding 2007 tax filings, noting that 50 million Americans could have their tax refunds delayed. The IRS printing deadline of November 16, 2007 has come and gone without any indication if an AMT fix will even occur this year.
Nearly 50% of people making between $75,000 and $100,000 will be subject to the AMT for 2007. 96,000 New Mexicans could see on average a $2,000 increase in their taxes if an AMT patch is not enacted.