Congresswoman Susan Davis voted to protect millions of middle-class families from the alternative minimum tax this year. The Alternative Minimum Tax Relief Act (H.R. 6275) was approved by the House on a vote of 233-189.
"With the cost of living on the rise and families in economic tough times, the last thing these families need is to get hit by a tax that wasn't meant for them in the first place," said Davis. "This bill will shield them from the AMT this year. But Congress needs to find a permanent fix to this problem."
The bill will provide $62 billion in AMT relief to more than 25 million families. It is fully paid-for by closing tax loopholes that allow the privileged few on Wall Street to pay a lower tax rate on their income than other Americans, encouraging tax compliance, and repealing unnecessary government subsidies for the big five oil companies.
This AMT fix will not add to the budget deficit because it adheres to pay-as-you-go budget rules. These rules helped produce record budget surpluses and a robust economy in the 1990s by mandating no new deficit spending.
The alternative minimum tax was created in 1969 to ensure that all taxpayers, especially high-income taxpayers did not use tax deductions to dodge their tax obligations and paid their fair share of our collective tax burden.