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Washington D.C.- Congressman Jeb Hensarling (R-TX), Chairman of the Republican Study Committee, criticized Speaker Pelosi and House Democrats for wasting valuable time on a bill that both Democrats in the Senate and the President have said will not be enacted. Hensarling urged Democrats to consider proposals to either repeal the AMT (Alternative Minimum Tax) entirely or immediately bring legislation to the floor that would extend the current AMT patch until full repeal is considered.
Democrats’ failure to address the expanding AMT has kept up to 25 million families in the dark about their tax situation in 2008. In addition, by wasting time considering legislation that has no chance of becoming law, Democrats are now initiating mass chaos during the tax filing season. Treasury Secretary Paulson cautioned that enactment of a patch in mid-to-late December “could delay issuance of approximately $75 billion in refunds to taxpayers who are likely to file their returns before March 31, 2008.” These delays could impact 50 million taxpayers, half of whom are not even subject to the AMT.
RSC Chairman Hensarling issued the following statement:
“The failure of Speaker Pelosi, Majority Leader Hoyer and Caucus Chair Emanuel to address the out-of-control AMT is a complete embarrassment and a slap in the face to taxpayers. While Democrats dilly dally in Washington debating amongst themselves over legislation that will never become law, families across the country are worried that the tax refund checks they depend on will be held hostage by the complete ineptitude of this failed Congress.
“No matter how much false advertising went into naming their bill today, the truth is that the Democrats do not provide any tax relief for American families. Instead, they would postpone a huge automatic tax increase on one group of Americans for one year and combine it with a $76 billion tax increase on another group of Americans. Democrats are rearranging the deck chairs on the Titanic tax ship.
“It is shameful that it is 313 days into the year and Democrats have refused to take a single day to help taxpayers and families facing the AMT. Speaker Pelosi and the Democrats in her caucus owe an apology to the 25 million Americans facing a substantial tax increase. The AMT was never intended to be forced upon middle-class American families, and Republicans are working to ensure that it never will.
“Democrats say that AMT repeal must be revenue neutral to the government, Republicans believe repeal must be neutral – to the taxpayer. Republicans disagree with the premise that taxpayers must be forced to pay more to repeal a bad policy. We disagree with Democrats in the House who want to pick and choose certain groups of taxpayers to be penalized for Washington’s mistake.
“That is why the Republican Study Committee has introduced the Taxpayer Choice Act, which will fully repeal the AMT while providing taxpayers the choice and opportunity to become part of a 21st Century tax system that is fair, simple, efficient and, above all, accountable.”
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The Republican Study Committee has introduced The Taxpayer Choice Act, a comprehensive, individual income tax reform initiative with two principal goals:
- eliminating massive future tax increases by repealing the Alternative Minimum Tax; and;
- providing individuals a choice for an alternative tax system that is transparent, simple and efficient.
The AMT was created in 1969 by Congress to target 155 people who were eligible for tax benefits that resulted in their paying little or no federal income tax. Today, the "tax-the-rich" policy intended to penalize 155 people has spiraled so out of control that, if ignored in the next few months, it will hit 25 million hard-working middle class American families. In 1999, the GOP-controlled Congress passed a full repeal of the AMT, which President Bill Clinton swiftly vetoed.
Unlike any other AMT reforms offered to date, the RSC plan will not increase taxes for ANY American and will retain a fair and equitable distribution of federal tax burdens. The RSC plan offers a choice: taxpayers can choose the new system or stay with the current tax code. They have the freedom to select the option that best suits their particular circumstances.
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