Maloney Supports Much-Needed Tax Relief for NY Families

Yesterday, Congresswoman Carolyn B. Maloney (D-Manhattan, Queens) voted in favor of H.R. 7005, which will provide tax relief for 25 million middle-class families who otherwise would have been required to pay the Alternative Minimum Tax (AMT) this year. More than 112,000 taxpayers in Maloney's district, including more than 25,000 households making less than $100,000 per year, will save an average of $2,000 on their tax bills thanks to this legislation.

The AMT was originally passed in 1969 to ensure that wealthy taxpayers paid their fair share, but the tax has begun to ensnare middle class taxpayers because it is not adjusted for inflation. Those most affected by the AMT are taxpayers in states like New York, with high property taxes, high local and state income taxes, and high sales taxes. The bill, approved yesterday by a vote of 393-30, provides a one-year exemption for middle class families facing the AMT.

"Without an AMT fix, thousands of already-struggling New York families would have been hit with a major tax increase. In this time of economic crisis, that's a scenario that no one can afford," said Rep. Maloney.

Maloney also submitted a statement in support of the bill into the Congressional record, a full copy of which follows:

"Madam Speaker, I rise in support of H.R. 7005, the Alternative Minimum Tax Relief Act of 2008.

"This legislation will provide immediate tax relief for working families by preventing 25 million middle class families from paying higher taxes this April in the form of the Alternative Minimum Tax. More than 112,000 of my constituents would be impacted by the tax, including more than 25,000 families making less than $100,000 per year.

"When the AMT was enacted, it was meant to ensure the wealthiest among us paid their fair share. It was never designed to hit the pocketbooks of middle-class families.
"While this is only a temporary fix, I want to be clear that I hope we can move forward in the near future on a long-term solution to this problem that does not add to the national debt.
"While fixing the AMT is of outmost importance, we cannot afford to mortgage our children's and grandchildren's future to pay for this tax relief.

"Our Country is currently burdened with a $9.5 trillion national debt, with each American's share at nearly 30,000.

"We simply cannot afford to keep digging ourselves into a deeper hole.

"Unfortunately, the White House threatened to veto the AMT fix that my Democratic colleagues and I preferred, which would have been fully paid for by closing tax loopholes for oil companies and firms who moved their operations offshore.

"Without an AMT fix, thousands of already-struggling New York families would have been hit with a major tax increase. In this time of economic crisis, that's a scenario that no one can afford.

"Middle class families should not have to pay for the White House's fiscal irresponsibility, so we must pass the bill before us today even if it is not revenue-neutral.

"I salute Chairman Rangel for bringing this fix to the floor of the House and providing common sense tax relief for middle class American families.

"I urge this bill's adoption."

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