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THE "STEALTH TAX"
About the Stealth Tax
From my seat on the tax-writing Ways and Means Committee, I am leading the fight in Congress to pass meaningful relief from the Alternative Minimum Tax (AMT), or, as I like to call it, the "Stealth Tax."
The Stealth Tax was originally enacted in 1969 to prevent a small percentage of taxpayers with very high incomes from paying little or no federal income tax.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 the AMT 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. In short, although the Stealth Tax was never intended to hit the middle class, it is now unleashing an unprecedented sneak attack on millions of middle-income individuals and families, including hundreds of thousands of New Yorkers.
That's why I introduced H.R. 4096, the "Stealth Tax Relief Act." This legislation would simply extend for an additional year the temporary, middle-class AMT relief that expired on December 31, 2005 and provide an inflation adjustment. Specifically, my bill would ensure that the higher AMT exemption amounts ($58,000 for joint returns and surviving spouses, $40,250 for singles) that were in effect in 2005 are extended to 2006 and adjusted for inflation. If my legislation is not enacted, these exemption amounts will revert back to their 2000 levels ($45,000 for joint returns and surviving spouses, $33,750 for singles) for tax year 2006, resulting in a massive tax increase on the middle class.
Unless my bill becomes law, the AMT's impact on the middle class will be staggering. If Congress fails to enact AMT relief, the number of middle class AMT victims nationwide will rise from 3.6 million in 2005 to more than 19 million this year. In New York alone, the number of AMT filers will balloon from 379,000 to 1.6 million. According to the Treasury Department, these taxpayers can expect to pay an average of $2,736 more in taxes, just because of the AMT.
In light of this, I am very pleased to report that my "Stealth Tax Relief Act" passed the House of Representatives last December by an overwhelming, bipartisan vote of 414-4. While Congress must certainly continue to work toward a permanent solution on the AMT issue, extending this temporary AMT relief is an urgent priority for middle-class taxpayers in Western New York. I will continue fighting to make sure that this critical bill is enacted into law this year.
H.R. 4096 - The Stealth Tax Relief Act
Are you a "Stealth Tax" Victim? Find out with the IRS's AMT Calculator:
Read Congressman Reynolds' Floor Statement
Press Releases
February 2, 2006 - Congressman Reynolds Statement on Senate's Consideration of AMT Repeal
December 7, 2005 - Reynolds' Bill Passes, Prevents Tax Increase on NY Middle-Class Taxpayers
October 21, 2005 - Reynolds Protects Western New York Middle-Class Taxpayers
Stealth Tax Repeal Letters of Endorsement
Other News Articles
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Congressman Thomas M. Reynolds - Produly serving New York's 26th District
