Tax Reconciliation Turns Blind Eye to AMT Increase

Rep. Mike Thompson (D-Calif.) will deliver the following speech today during floor debate of the Republican Tax Reconciliation bill. Thompson is a member of the House Ways and Means Committee and the fiscally conservative Blue Dog Coalition.

Text as prepared for delivery:

“Mr. Speaker, just weeks ago the Majority came down to the floor and cut $50 billion from services for middle class workers, students, hungry children, farmers and single moms. Today, they are back with Part Two - pushing almost $60 billion in tax breaks for Americans who need help the least. And they are trying to peddle this as deficit reduction. Only on this floor can you spend $10 billion more than you cut and call it deficit reduction.

“Our constituents know that these numbers don't add up. And, they also know that these priorities don't add up.

“This bill grows the deficit and it turns a blind eye to the tax increase the middle class will face in just 23 days. That's when relief from the Alternative Minimum Tax, or AMT, expires. Years ago, the AMT was created to prevent 155 very wealthy families from sheltering all of their income from taxes. If relief expires, 16 million families will start paying this tax next year.

“This is an issue that hits home for my constituents. California is hit harder by the AMT than any other state in this country. Almost a quarter of the revenue that Treasury gets from the AMT comes to Washington directly from California. If AMT relief isn't extended, that number will increase.

“This legislation extends tax cuts that aren't even close to expiring - cuts that are on the books for three more years. It changes more than 25 different tax provisions - but somehow, our friends in the Majority could not find room for AMT relief.

“16 million families impacted, 23 days until expiration, zero regard for the middle class.

“I urge my colleagues to vote against this irresponsible legislation and support the Rangel substitute. This substitute extends immediately expiring tax provisions AND it protects our middle class families from the AMT.”