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Your Complete AMT Kit

[click here for a complete .pdf version]

Contents:

1993 AMT Democrat Tax Increase

In 1993 the Democrats in unison raised the AMT tax rate from 24 percent to a dual rate structure of 26 and 28 percent. This legislation passed as part of the Clinton Tax Increase. Raising the AMT rates and normal income tax rates at the same time ensured more people continued to pay the AMT rates in the future.

  1. List of current House and Senate members who voted to increase these tax rates which we call the “1993 AMT Hypocrisy Caucus.”
  2. ATR analysis of the impact of the 1993 AMT tax increase shows 12.2 million of the expected 31 million taxpayers will pay the AMT because of this tax increase. Furthermore, an additional 17.6 million taxpayers will pay because the Dems at that time did not index AMT to inflation. As a result, 30 of the 31 million taxpayers (97 percent) will be forced to pay the AMT because of this tax increase and failure to index to inflation.

1999 AMT Repeal

Washington is not known as a place where secrets are kept but not in the case of legislation in 1999 which passed both the Senate and the House which PHASED OUT AND THEN REPEALED THE ALTERNATIVE MINIMUM TAX, and remains a secret today. IN 2007 THE AMT WOULD HAVE BEEN FULLY REPEALED IF CLINTON DID NOT VETO THIS LEGISLATION.

  1. List of current House and Senate members who voted against AMT repeal which we call the “1999 AMT Hypocrisy Caucus.”
  2. Quotations and details of the 1999 legislation (Includes a quotation from Rangel saying “Thank God we have a President that is going to veto this foolishness, and thank God we have a Congress that is not going to override that veto.”)

The Impact of the Bush Tax Cuts on AMT Payers

Democrats love to say the Bush tax cuts caused the AMT problem. As such this gives them an excuse to repeal the Bush tax cuts without claiming they are raising taxes. Nothing could be further from the truth.

  1. Grover Norquist’s written testimony to Ways and Means (with charts) showing the AMT problem was a problem long before Bush got to office and repealing the Bush tax cuts will not slow the growth of AMT payers in the future.

Additional Resources

  1. Senate Republican Policy Committee Paper on AMT
  2. Grover Norquist’s commentary on the AMT, from a special issue of Tax Notes

Legislation

  1. ATR letter to Sen. Grassley and Sen. Specter supporting S. 734, the “AMT Rate Reduction Act of 2007” which would repeal the Clinton AMT by reducing the top rate from 28 percent to 24 percent and;  S. 55, the “Individual AMT Repeal Act of 2007”, which would fully repeal the AMT.
  2. ATR letter to Rep. English and Rep. Royce supporting HR 2253, the “AMT Rate Reduction Act of 2007” which would repeal the Clinton AMT by reducing the top rate from 28 percent to 24 percent and;  HR 1366, the “Individual AMT Repeal Act of 2007”, which would fully repeal the AMT.