Duckworth Slams Congress for Failing to Address Alternative Minimum Tax

DUCKWORTH SLAMS CONGRESS FOR FAILING TO ADDRESS ALTERNATIVE MINIMUM TAX
WHILE U.S. HOUSE HELPS WEALTHIEST AMERICANS, 6TH DISTRICT RESIDENTS FACE $2,700-TO-$4,700 IN ADDITIONAL TAXES

Congressional candidate Tammy Duckworth today criticized members of the U.S. House for rejecting an effort designed to fix a problem that will result in many taxpayers in the 6th district owing thousands of dollars more to the IRS.

Duckworth has called repeatedly for Congress to provide relief to middle-income families who are set to be hit with the Alternative Minimum Tax, or AMT. It was the subject of one of her first press conferences of the campaign, where she called the AMT a "ticking tax time bomb" and called on Congress to agree on a bipartisan strategy to fix it.

Yesterday, the House defeated a motion that would have called on House-Senate conferees to protect middle-class families from the AMT when they meet to hammer out differences on H.R. 4297, the Tax Reconciliation Bill. The motion failed by a vote of 185-207.

"The AMT was originally designed to ensure that the wealthiest Americans paid their fair share of taxes," said Duckworth. "Unfortunately, this Congress would rather lock in big tax cuts for the wealthiest Americans than protect middle-income families from an impending tax hike."

Forecasters predict that as many as 20 million more taxpayers will be subject to the AMT in 2006, a five-fold increase from 2005 levels. A recent study commissioned by the New York Times identified DuPage County as being home to one of the highest concentrations of such taxpayers.

"This is an issue that hit home here in our community," she said. "Until and unless this Congress acts, middle-income families here in the 6th District will be forced to cough up thousands in additional taxes," she said.

Households that get hit by the tax will be forced to pay on average more than $2,700 in additional taxes. The penalty is twice as high for families with children. Couples filing jointly who have one child will owe approximately $4,700 in extra taxes.

The House version of the tax reconciliation bill extends the capital gains and dividends tax breaks for two years, but fails to protect middle-income families from the AMT. It also increases the deficit by $81 billion. The Senate-passed bill extends the current exemption from the AMT for one year.

According to one study, under the Republican reconciliation tax bill, 45 percent of the benefits will go to millionaires, who will receive an average tax break of $32,000. By comparison, the majority of taxpayers would get less than $30.

"Most families in our community are already struggling to pay escalating health care costs, tuitions for their children and prepare for retirement at a time when their pensions are in increasing jeopardy. They deserve leadership in Congress who will fight for them and relieve their burdens," she said.

"Fixing the AMT is the right place to start."

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