Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 4096) to amend the Internal Revenue Code of 1986 to extend to 2006 the alternative minimum tax relief available in 2005 and to index such relief for inflation. Mr. Speaker, I…
Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 4096) to amend the Internal Revenue Code of 1986 to extend to 2006 the alternative minimum tax relief available in 2005 and to index such relief for inflation.
Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on the subject of the bill under consideration.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, it has been called the ``stealth tax,'' a ``ticking time bomb for the middle class,'' and even the ``Darth Vader of the Tax Code.'' It is the individual alternative minimum tax, the AMT, and it has middle class America squarely in its sights.
Today, as we consider the Stealth Tax Relief Act of 2005 on the floor of the House, this body has a chance to stand with America's middle class by preventing an enormous, unnecessary tax increase from sneaking up on millions of unsuspecting taxpayers next year.
As many of my colleagues know, the AMT was originally enacted in 1969 to prevent a small percentage of taxpayers with very high incomes from paying little or no Federal income tax. However, because this stealth tax was never adjusted for inflation, it is now sneaking up on more and more middle class taxpayers each year as they climb the income ladder. Let me repeat: The AMT was never intended to hit the middle class, but now it is threatening millions of our middle class constituents.
That threat is what prompted the President's Tax Reform Commission to recommit repealing the AMT entirely when it issued its report last month. And, certainly, any serious discussion of long-term tax reform and simplification must include a long, hard look at the AMT.
Mr. Speaker, but middle-class taxpayers cannot afford to wait for the enactment of a permanent AMT relief. As many in this Chamber will recall, the temporary AMT relief that Congress has repeatedly enacted over the last several years is, once again, set to expire at the end of this month, only weeks away. Unless Congress extends this AMT relief, the stealth tax will claim many more middle-class victims.
For perspective, here are some numbers so our viewers at home can follow along with the charts. According to the Joint Committee on Taxation, if Congress fails to act, the number of middle class AMT victims will rise from 3.6 million in 2005 to over 19 million in 2006. In other words, if we fail to act, some 15.4 million more taxpayers will get hit with this stealth tax next year. And according to the U.S. Treasury Department, these taxpayers will pay $2,736 more in taxes just because of individual AMT.
The numbers from my home State of New York tell a similar story. According to the Manhattan Institute For Policy Research if we do nothing, the number of AMT taxpayers in New York will balloon from 379,000 in 2005 to 1.6 million in 2006. That is unacceptable for the middle-class taxpayers I represent in western New York. It is unacceptable for taxpayers nationwide.
Mr. Speaker, the bill before us today will simply extend for 1 additional year the individual AMT relief that we most recently enacted just a year ago. Specifically, this legislation will ensure that the higher AMT exemptions amounts to $58,000 for joint filers and surviving spouses, and $40,250 for singles, that are applicable to tax year 2005, are extended to 2006 as well. This legislation also includes a modest inflation adjustment, which will ensure that the value of this much- needed tax relief is not eaten away by inflation.
If Congress fails to act on this legislation, these exemption amounts are scheduled to revert back to the 2000 levels next year, 45,000 for joint filers and 33,750 for singles, resulting in a massive tax increase on the middle class.
I would note that the other body recently voted to provide a very similar AMT relief as part of its Tax Relief Act of 2005. I would hope that with a strong bipartisan vote here today, we will be able to work out with our colleagues on the other side of the Capitol to keep the stealth tax from being a middle-class nightmare.
Announcement by the Speaker Pro Tempore
Mr. Speaker, I yield myself such time as I may consume.
I stand looking across the way at the ranking member, and not only is he the senior member on the Committee on Ways and Means, but also the senior Member of Congress from my State. I listen carefully when he speaks.
He does not want to see the AMT tax come onto the middle class. He does not really like the process. He is not really sure whether tax cuts are a good idea or not, but hopes that Members will support the legislation.
When we look at some of my brief experience here on both the Rules Committee and now on Ways and Means, I just want to remind the gentleman that as I introduced this legislation with cosponsors, I am pleased to know that we are actually taking up this legislation ahead of the other tax legislation that has been before the Ways and Means Committee on this floor which I hope will be tomorrow or the next day, and I also look back to see that this extension, which has been done in previous years, is not a new issue for Members in the House.
Everyone is familiar with the problem. It is essentially the same bill that passed overwhelmingly on May 5, 2004, with a vote of 333-89, unanimous on our side of the aisle, and 109 voted for it on the Democratic side of the aisle, and 89 against. I hoped there was not huge controversy with having the AMT legislation before us, and made sure there was ample time for debate on the floor by both sides of the aisle before we consider passage of the AMT.
The one thing I have learned in my time here, I cannot predict what the other body will do, but I hope they will do the right thing, and that would be to pass this legislation so the stealth tax does not become a middle-class tax, adding more people to the burden of having to pay this.
Mr. Speaker, I yield 3 minutes to the gentleman from Pennsylvania (Mr. English) who is a distinguished member of the Committee on Ways and Means.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, this bill that we have before us today will simply extend for one additional year the individual AMT relief that we most recently enacted just a year ago. Specifically, this legislation will ensure that higher AMT exemptions, now, hear these figures: they are not millionaires. They are not even people making over $100,000 a year. These are exemption amounts, $58,000 for joint filers and surviving spouses and $40,250 for singles that are applicable to the tax year 2005 and extended now to 2006 if we have the good fortune of passing it here today.
When I look at the aspect of this legislation, it is simply a stealth tax, raiding and invading middle-class America. This will have an opportunity to thwart that so that some 16.5 million Americans do not find themselves having to pay the stealth tax.
Mr. Speaker, I yield 2\1/2\ minutes to the gentleman from Florida (Mr. Foley), who is also a distinguished member of the Committee on Ways and Means.
Mr. Speaker, I certainly respect the gentleman from Massachusetts (Mr. Neal) and his contribution to both the Ways and Means Committee and this important legislation for a final fix, which I advocated that we do a final fix. Unfortunately, as I stand here today, with only weeks away, I have legislation to extend into next year the opportunity of having the AMT not move into taking almost 20 million Americans of middle-class tax. And I also will be interested in listening to the views of my colleague, Mr. Neal, on the floor of the Ways and Means Committee, and other aspects on his thoughts of the Mack-Breaux solution, if that is in fact a solution that he supports or would recommend to our body to look at in the future.
I yield to the gentleman from Massachusetts.
I believe that solution that you had also contained tax increases that Members felt that they did not want to incur at this time.
Mr. Speaker, I yield 2 minutes to the gentleman from Colorado (Mr. Beauprez), another distinguished member of the Ways and Means Committee.
Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from California (Mr. Herger), senior member of the Ways and Means Committee.
Mr. Speaker, I yield 1 minute to the distinguished gentleman from Florida (Mr. Shaw), a member of the Committee on Ways and Means.
Mr. Speaker, I yield 30 seconds to the gentlewoman from New York (Mrs. Kelly), who is a senior member of the Financial Services Committee, and no one has spent more time in battling this terrible stealth tax than Sue Kelly.
(Mrs. KELLY asked and was given permission to revise and extend her remarks.)
Mr. Speaker, I yield myself the balance of the time.
Mr. Speaker, the year 1969 saw examples of the best and worst of what the Federal Government can do. On one hand, the Department of Defense reachers invented the Internet, which has opened up a world of knowledge to anyone with access to a computer.
On the other hand, in 1969, Congress controlled by the other side of the aisle, created the original version of the AMT. But while the Internet has continually evolved, the AMT structure has not.
It has now become a stealth tax, sneaking up on unsuspecting middle class taxpayers. Mr. Speaker, many of us here today on both sides of the aisle would likely support AMT relief that goes far beyond what is included in this bill.
But the legislation before us today is a crucial first step. I urge my colleagues to come together on a strong bipartisan basis to protect the middle class against stealth tax increases from the AMT.
Mr. Speaker, I yield back the balance of my time.
Mr. Speaker, on that I demand the yeas and nays.