Dreier Votes to Extend Tax Relief for Middle-Income Americans

May 5, 2004

WASHINGTON, D.C. - Congressman David Dreier (R-CA), Chairman of the House Rules Committee, voted today to approve legislation that would stop a tax increase on middle-class Americans at the end of this year by preventing increases in exemptions in the Alternative Minimum Tax (AMT) rates from expiring. The Middle-Class Alternative Minimum Tax Relief Act of 2004, H.R. 4227, was approved with overwhelming bipartisan support, 333-89.

"The AMT is reaching an unintended target - the middle-class," Dreier said. "It's critical that the Congress act to prevent a monumental jump in the tax burden on America's working families, especially as our economy continues to grow. By acting now, we are making it clear to American taxpayers we want to make the tax code as fair as possible. And we don't want them to face any higher burden than absolutely necessary."

The AMT was created in 1969 as a way to ensure that wealthy taxpayers paid at least a minimum of taxes while still preserving the economic and social incentives in the tax code. However, due to the combined effects of inflation and changes in the tax code, the AMT is going beyond its original purpose and imposing an undeserved tax burden on an increasing number of middle class Americans. The Jobs and Growth Act of 2003 included several provisions designed to alleviate the tax burden on working Americans, including relief from the AMT. The increases in exemptions included in that legislation are set to expire at the end of this year. H.R. 4227 extends the exemptions to 2005. Without this action, it is estimated that 11 million taxpayers would face an average tax increase of $1520.