Washington, DC – Senate Majority Leader Bill Frist yesterday stated that the Senate would not pass an extension of the current Alternative Minimum Tax (AMT) exemption limits before next year.  Congresswoman Nita Lowey (D-Westchester/Rockland) strongly criticized this statement and urged the Senate to immediately act on this legislation.

“Republican leaders have known all year that the current AMT exemption limits will expire at the end of this year.  If these limits are allowed to expire, more than 15 million more middle class families will be penalized by the AMT,” said Lowey.  “We must reverse course and pass the AMT extension into law before this congressional session ends in the coming days.”

The Alternative Minimum Tax (AMT) was instituted in 1969 to ensure that the wealthiest few taxpayers could not manipulate the tax code to avoid paying taxes entirely.  Unfortunately, it is now hitting more and more middle class families.  Congresswoman Lowey is an original cosponsor of legislation, HR1538, to change the tax code by increasing the AMT exemption to $100,000 and indexing it for inflation.