The Garden State Tops The List of AMT Taxpayers

WASHINGTON, DC – Congressman Leonard Lance (NJ-07) today called on House leaders to include relief from the Alternative Minimum Tax (AMT) in any tax legislation considered by the U.S. House of Representatives prior to year's end.

"The Alternative Minimum Tax is an all-too-familiar miserable annual tradition for a growing group of New Jersey families," Lance said.  "New Jersey is among the leaders in the Nation in the percentage of taxpayers required to pay the AMT and more taxpayers from the middle class have been increasingly subject to the AMT.  Given our current economic health it is important that Congress address this issue to prevent a catastrophic tax hike."

According to a report published by the non-partisan Congressional Research Service (CRS), if Congress fails to address the AMT with a patch or permanent fix by 2012, 34.4 million taxpayers will pay higher taxes.  

Lance noted that the AMT hurts New Jersey’s taxpaying families particularly hard.  According to the Internal Revenue Service, more than 265,000 New Jersey taxpayers paid the AMT in 2009 – among the highest percentage of state taxpayers in the Nation.  New Jersey's 7th Congressional District ranks in the top ten districts in the nation where taxpayers are affected by the AMT.  

Excerpts of the lawmakers’ bipartisan letter to House Speaker John Boehner follows:

“…Without a patch or permanent fix, the number of taxpayers affected by the AMT fix, 34.4 million taxpayers will find their tax bill skyrocket.  Given our nation’s economic health, and millions of small businesses, individuals, and families struggling to make ends meet, Congressmust address the AMT extension to prevent a catastrophic tax hike.

“Because of the particular tax preferences and exemptions disallowed under the AMT, people in certain demographics, such as large families and married couples will be particularly hard hit by this tax.  Furthermore, because the AMT does not allow for a deduction of state and local taxes, residents of certain areas of the country will be disproportionately affected by the tax.  For example, the states most impacted by the AMT, are California, New York and New Jersey.”  

Click here to read the full letter sent to Speaker Boehner.

For his part, Lance has long advocated for Congress to repeal the AMT.  The Seventh District lawmaker is a cosponsor of H.R. 547, the "Individual AMT Repeal Act," which would repeal the AMT on individuals after 2010.  

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