CRAPO: NEW YEAR SHOULD BRING REPEAL OF AMT
Says one-year fix of the Alternative Minimum Tax only a good first step
Washington DC – Idaho Senator Mike Crapo says the Senate vote approving a temporary one-year fix to the problems created by the Alternative Minimum Tax (AMT) is a “long-overdue first step,” but now a vote is needed to repeal the tax completely. Crapo is a sponsor of legislation to repeal the tax, which is now hitting middle-income Americans, something it was not intended to do.
“This most recent vote will, for this year, prevent an unexpected tax increase on thousands of Idahoans,” Crapo said. “I appreciate the acceptance by Senate leadership that it is not good policy to raise taxes on the American people to offset the $50 billion the government was never intending to collect in the first place.
“It is now up to the House to follow suit and approve this bill without tax increases and get it to the President as soon as possible,” Crapo added. “Ultimately, a permanent fix is needed. It is not good policy to kick this can down the road from one year to the next. The AMT should be permanently repealed.”
Crapo, who serves on the Senate Finance Committee, has been a strong voice for repeal of the AMT, which was implemented in the mid-1960s to prevent a handful of wealthy Americans (fewer than 200 nationwide) who had used loopholes to legally avoid paying any taxes. It is estimated that as many as 90,000 Idahoans could face the AMT for 2007 if the fix is not enacted. Congressional leadership has not expressed any intention to repeal or index the AMT.