[Congressional Record Volume 145, Number 125 (Thursday, September 23, 1999)]
[Extensions of Remarks]
[Pages E1943-E1944]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       TAX RULES WAIVER EXTENSION

                                 ______
                                 

                          HON. RICHARD E. NEAL

                            of massachusetts

                    in the house of representatives

                      Thursday, September 23, 1999

  Mr. NEAL of Massachusetts. Mr. Speaker, today I am introducing for 
myself and Mr. Houghton, Mr. Rangel, Mr. Coyne, Mrs. Johnson (CT), and 
Mr. Matsui, legislation to extend for one additional year the temporary 
waiver of the minimum tax rules that deny many families the full 
benefit of nonrefundable personal credits, pending enactment of 
permanent legislation to address this inequity.
  This problem is well known. The tax credits for education and 
children are limited by the alternative minimum tax. Consequently, more 
and more average Americans who use the dependent care credit, the new 
child credit, the HOPE credit or the lifelong learning credit, will be 
forced to fill out the time consuming, complex alternative minimum tax 
form. Even worse, a growing number of Americans will have all or part 
of these credits denied because they are part of the AMT base. For 
families with three or more children, the refundable portion of the 
child credit is also subject to the AMT cutback, which this bill also 
fixes for 1999.
  The Department of the Treasury estimated that in 1998, without the 
``one year'' waiver that was enacted last year, eight hundred thousand 
taxpayers who were entitled to the child credit or the education 
credits would have been denied the full benefit of these credits by the 
AMT. And although the AMT was enacted into law to ensure that wealthy 
individuals pay some tax, a large percentage of these new AMT taxpayers 
will be married couples who earn between $45,000 and approximately 
$100,000.
  Mr. Speaker, we know that there is widespread agreement to fix this 
problem either on a permanent basis, or if that is not possible, for 
one additional year. The Clinton Administration, the House and Senate, 
and both parties agree. Yet, it has not been accomplished. We are 
introducing this bill, which extends last year's waiver for one 
additional year, to highlight the problem once again and to urge quick 
action to solve it for tax year 1999. Given the lead time the Internal 
Revenue Service needs to draft and print tax forms for next year, it is 
necessary for us to take action early next month. Hopefully, 
legislation that is acceptable to all of us will be enacted on a 
bipartisan basis shortly.

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