Duckworth to Roskam: Middle-Class Tax Relief Must Come First

Duckworth to Roskam: Middle-Class Tax Relief Must Come First

Challenges Opponent to Address Negative Effects of the AMT

With the April 17th tax deadline looming, 6th Congressional district candidate Tammy Duckworth said today that Congress must resolve a tax problem that is taking an ever-increasing bite out of middle-income families.

"Before extending tax breaks on investment income, which will benefit the wealthiest Americans and add billions of dollars to the federal deficit, this Congress must protect the growing number of middle-class families that are being socked by the Alternative Minimum Tax," Duckworth said.

Standing outside the Villa Park Post Office, where taxpayers will soon be dropping off their returns, Duckworth criticized her opponent, state Senator Peter Roskam, for failing to speak out on the issue while fashioning himself as a tax-fighter.

"Apparently, Senator Roskam's devotion to lower taxes only applies to the very rich," she said.

For middle-income families, the AMT is steadily emerging as one of the most damaging items in the tax code. The AMT was originally implemented in the early 1970s, to ensure that the wealthiest taxpayers could not avoid paying income taxes. But largely because it was not indexed to inflation, the AMT has increased the liability of many middle-income families in recent years.

"In the next few days - and especially by next year -- more and more middle-income taxpayers will be walking up the steps of this and other post offices across the 6th District to send more of their hard-earned money to the IRS," Duckworth said. "They'll pay more not because they're earning more, but because Congress failed to fix the AMT."

A study commissioned by economy.com and the New York Times identified DuPage County as being home to one of the highest concentrations of taxpayers at risk of the AMT. Households owing the tax will be forced to pay on average more than $2,700 in additional taxes; couples with one child who file jointly will owe approximately $4,700 extra.

As many as 20 million more taxpayers will be subject to the AMT in 2006 -- a five-fold increase over 2005. During that time, the portion of households earning between $75,000 and $100,000 who pay the AMT will rise from 1.1 percent to 29.8 percent. It is estimated that by 2010, the AMT will hit more than two-thirds of taxpayers earning between $50,000 to $100,000.

"There is a simple way to describe the Alternative Minimum Tax," said Duckworth. "The AMT is—in truth—a middle-class surcharge," she said.

In recent weeks, efforts to fix the tax have been defeated by the Congressional majority. In March, the Senate Budget Committee approved along party lines a proposal for the upcoming Fiscal Year 2007 which—while resulting in a deficit of more than $350 billion—does not fix the AMT. This month, the full U.S. House rejected an effort to fix the AMT.

"Middle-income families in this community already are paying too much in taxes," said Duckworth. "Instead of handing out more tax relief to the wealthiest Americans, Congress ought to fix the AMT."

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