Legislation would benefit more than 43,000 families in District 8
U.S. Gabrielle Giffords today was part of a bipartisan majority that voted to pass legislation that would limit the expansion of the Alternative Minimum Tax (AMT), a move to protect more than 43,000 Southern Arizona families from higher future tax bills.
"Southern Arizona families are already struggling with the rising costs of food and gasoline. Forcing these same families to pay higher federal taxes is unacceptable," Giffords said.
The Alternative Minimum Tax Relief Act of 2008, H.R. 6275, passed the House this afternoon in a 233 to 189 vote. The legislation faces opposition in the Senate and by the White House.
The bill's chief provision is an exemption for middle class taxpayers from the AMT. If this legislation does not get signed into law by President Bush, more than 25 million families nationwide would be hit by the AMT next year. Nearly 7000 individuals were subject to the AMT in 2005 in District 8 and this number is expected to mushroom to an estimated 50,424 in 2009 if the House measure is not enacted.
The AMT was enacted in 1969 with the aim of increasing the tax liability for the very wealthy. Because it has never been adjusted for inflation, the AMT has evolved into a tax that impacts a growing number of middle income families. Congress had tried at the beginning of this session of Congress to eliminate the AMT. Since this effort failed, today's House vote provides one-year relief from the AMT.
"I am especially pleased that the legislation passed by the House today is fully paid for by closing tax loopholes. As a member of the Blue Dogs, I am committed to assuring that any new legislation does not increase the Federal deficit. We are helping middle-class families without further inflating the deficit," said Giffords.