WASHINGTON   –  U.S. Representative Jo Ann Emerson (MO-08) derided the House of Representatives today for failing to pass meaningful reform to the U.S. tax code and address the Alternative Minimum Tax (AMT).

“Right now the AMT affects 4 million U.S. taxpayers.  In a matter of weeks, that same portion of our tax code could hit 25 million American taxpayers unless Congress acts,” Emerson said.  “Every one of those returns will be subject to higher federal taxes, at an estimated average of $2,000 more in taxes per return.  Congressional delay is the legislative equivalent of fiddling while Rome burns.  In the meantime, the AMT looms over millions of families.”

The Alternative Minimum Tax was passed into law in 1969, but was not indexed for inflation.  As a result, the AMT applies to more taxpayers each year, including many below $75,000 in adjusted gross income.  In the past, Congress has applied one-year patches to protect middle-class taxpayers from the AMT, but no such remedy has been taken up by Congress for the 2007 tax year.

Emerson also pointed out the delay is going to affect Americans expecting a tax refund early in 2008.

“As a direct result of inaction on this important measure, the tax refunds of 32 million Americans – at a total of $87 billion – could be delayed.  That’s an irresponsible policy that means more hard-earned dollars of U.S. taxpayers will be held in the Treasury for longer than they need be.  It keeps dollars off the family budget and out of the U.S. economy.  Ordinarily the Internal Revenue Service would accept tax returns starting on January 14, but this year there is no way to meet that standard.  The paperwork simply will not be ready in time,” Emerson said.