[Congressional Record Volume 141, Number 42 (Tuesday, March 7, 1995)]
[House]
[Pages H2733-H2734]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


             THE ALTERNATIVE MINIMUM TAX REPEAL ACT OF 1995

  (Mr. ENGLISH of Pennsylvania asked and was given permission to 
address the House for 1 minute and to revise and extend his remarks.)
  Mr. ENGLISH of Pennsylvania. Mr. Speaker, today I am introducing the 
Alternative Minimum Tax Repeal Act of 1995. It is my sincere hope that 
this legislation will provide a starting point for this Congress to 
consider eliminating economic distortions caused by the Tax Code and 
encourage new investment in manufacturing.
  This legislation would repeal the alternative minimum tax that was 
created as part of the Tax Reform Act of 1986. This tax is a major 
impediment to 
 [[Page H2734]] new investment for many capital intensive and rapidly 
growing manufacturing firms in the chemical, electronic equipment, 
energy, metal, paper, steel, and transportation industries. It is a 
parallel tax system that takes away a portion of a company's 
depreciation deductions if their income as computed under the 
alternative minimum formula is higher than their income calculated 
under the regular tax system.
  While it was designed and intended to prevent otherwise profitable 
companies from escaping taxation altogether through the use of 
exclusions, deductions, and credits, it has instead resulted in large 
interest-free loans to the Government by companies that experienced 
real economic losses during the early 1990's. Congress never intended 
for companies to incur a permanent increase in tax liability due to 
this tax. Put simply, the alternative minimum tax is not working as it 
was intended.
  While many members of the House Ways and Means Committee, on which I 
serve, are very concerned about this tax, by introducing this 
legislation I hope to ignite a broader interest in this exact type of 
much needed tax reform. I am pleased to offer this bill to the House.

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