Long Island and Westchester, NY - Congresswoman Nita Lowey (D-Westchester/Rockland, NY) and Congressman Steve Israel (D-Long Island, NY), today announced their effort to fix a stealth tax that is hurting Westchester, Rockland and Long Island families. The Alternative Minimum Tax (AMT) was instituted in 1969 in an effort to ensure that wealthy taxpayers could not manipulate the tax code to avoid paying taxes entirely.  Unfortunately, it is now hitting more and more middle class families.  Reps. Lowey and Israel are proposing legislation to change the tax code by increasing the AMT exemption to $100,000 and indexing it for inflation.

“Unfortunately, what started out as a way to keep taxes fair has over time become a burden on ordinary, middle-income families.  The AMT is rapidly becoming a MCT - a middle class tax,” Lowey said.  “Our legislation will restore the AMT's original purpose by indexing it to inflation so it won't hurt middle-income families in the future.  I look forward to working with Congressman Israel to solve this problem once and for all.”

“More and more Long Islanders are getting a nasty surprise when they finish their taxes this year,” Israel added.  “They’re having to pay more because of a stealth tax hitting a growing number of middle class taxpayers. Though this tax was meant to apply to the very wealthy, it’s now affecting cops, nurses and teachers. That is not fair; it’s not right; and middle class taxpayers simply cannot afford to wait for relief. Congress and the Administration need to get it done now. That is why I've introduced this legislation with Congresswoman Lowey.”

The AMT is a provision of the tax code originally meant to apply only to the exceptionally wealthy, but since it was never indexed for inflation it is suddenly gouging the unsuspecting and unprepared middle class.  This year, more than 3 million taxpayers will be subject to the AMT.  If the problem continues, over 30 million taxpayers will be forced to pay the AMT by the end of the decade. According to the National Taxpayer Advocate, in 2005, 65 percent of married couples with two or more children and with adjusted gross incomes of between $75,000 and $100,000 - not the rich tax evaders this tax was meant to impact - will feel the impact of the AMT.  In fact, the AMT may well be the largest middle class tax increase in history.