Middle Class Alternative Minimum Tax Relief Act of 2004

MIDDLE-CLASS ALTERNATIVE MINIMUM TAX RELIEF ACT OF 2004 -- (House of Representatives - May 05, 2004)

Mr. LINDER. Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 619 and ask for its immediate consideration.

The Clerk read the resolution, as follows:

H. Res. 619

Resolved, That upon the adoption of this resolution it shall be in order to consider in the House the bill (H.R. 4227) to amend the Internal Revenue Code of 1986 to extend to 2005 the alternative minimum tax relief available in 2003 and 2004 and to index such relief for inflation. The bill shall be considered as read for amendment. The previous question shall be considered as ordered on the bill and on any amendment thereto to final passage without intervening motion except: (1) one hour of debate on the bill equally divided and controlled by the chairman and ranking minority member of the Committee on Ways and Means; (2) the amendment in the nature of a substitute printed in the report of the Committee on Rules accompanying this resolution, if offered by Representative Rangel of New York or his designee, which shall be in order without intervention of any point of order, shall be considered as read, and shall be separately debatable for one hour equally divided and controlled by the proponent and an opponent; and (3) one motion to recommit with or without instructions.

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Mr. HOYER. Mr. Speaker, I thank the gentleman for yielding me time.

Mr. Speaker, this debate on the alternative minimum tax epitomizes, unfortunately, precisely what is wrong in this House today: the Republican leadership's refusal to seize bipartisan opportunities where they exist, and its desire to turn every tax bill into a decisive political bludgeon.

Let us be honest: every Member of this House, without exception, recognizes that we must fix the alternative minimum tax. That is not what this debate is about. When the AMT was enacted in 1969, it was supposed to ensure that wealthy taxpayers paid a fair share, that is to say, that you did not have your accountants figure out 17 ways to Sunday that you would not pay any taxes to support this democracy, this Republic, this great Nation.

We said in a bipartisan way, you ought to pay something. But because it was not indexed for inflation, the AMT today ensnares more and more middle-income taxpayers. That was not the intent of any Member of this House. It forces them to pay more than they would under the regular tax schedule. But rather than trying to find a bipartisan solution to this growing and vexing problem, the majority has offered the legislative equivalent of a Band-Aid that would only drive us further into debt.

Make no mistake: the Democratic substitute drafted by the gentleman from New York (Mr. Rangel) is vastly superior. Where the Republican bill would extend current AMT exemptions for taxpayers whose adjusted gross income is less than $40,250, or $58,000 for married couples, the Democratic substitute would say to individuals making $125,000 or couples making $250,000, the Alternative Minimum Tax was not meant for you. You will pay your regular taxes. It was meant for the very wealthy who exempted themselves from taxes.

I want you to know that I paid 10 percent more of my income, which is about one-eighth of DICK CHENEY's income, the Vice President's. Why? Because he has an extraordinary preference item, $625,000 in income from municipal bonds. Zero taxes. But the soldiers who are defending the assets of those municipal bonds, CDC is protecting the health of those in those municipalities, as well as Mr. Cheney's and mine.

Not one nickel of cost in the Republican bill is paid for. Not one nickel. My friends on the Republican side, you are raising taxes, but you are slick; you are doing it by the back door. You are increasing the debt. As a result of increasing the debt, my kids are going to have to pay higher taxes.

That is pretty slick. Why do I say it is slick? My kids happen to be voting; but my grandchildren, who are going to have to pay more taxes, are not voting, so they are not focused on what you are doing, this shell game you are playing of pretending you are cutting taxes.

You are delaying taxes, is what you are doing; and you are increasing them at the same time. The fact is, the Democratic substitute provides a simpler and broader relief. It is fiscally responsible. That used to be the mantra of your party. Many of your folks talk about it today. They do not vote that way, however.

It is ironic, Mr. Speaker, that this Republican majority, which talks about tax fairness and simplification, in the last 3 ½ years has only made our Tax Code much more complicated.

Let us not perpetuate tax confusion and complexity. Let us help those who need help. Let us pay for what we do. That is the responsible policy. That would make this Congress responsible. We can do so in a bipartisan way. Vote for this substitute.

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