[Congressional Record Volume 153, Number 187 (Friday, December 7, 2007)]
[Senate]
[Page S15029]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ALTERNATIVE MINIMUM TAX
Mr. KOHL. Mr. President, last night, after months of political
posturing, the Senate voted to prevent a massive tax burden from
falling on 21 million Americans. Without last night's action, millions
of middle-class Americans would have been impacted by the alternative
minimum tax, a tax meant to impact only the wealthiest individuals. And
while I believe the legislation we passed was not perfect, I would have
preferred that we adhere to the pay-go rules that I voted for--it was a
compromise I supported.
I must express my disappointment at what it took to get us here.
There was no disagreement over whether we should prevent middle-class
families from being hit by the AMT. So why would it take months to get
this legislation passed? Sadly, the debate surrounded whether or not we
should pass the burden of paying for this fix onto the next generation.
Republicans wanted to borrow money to pay for this tax cut, while
Democrats argued that we should be more responsible and not leave our
children with the bill.
In addition to not offsetting the cost of the AMT fix, the Senate
failed to pass a tax extenders package. In October, the House passed
fully offset legislation that would both fix the AMT and extend certain
tax provisions that will expire at the end of the year. These
provisions--such as the research and development credit, the tuition
deduction, and the deduction for teachers' classroom expenses--are
vital to millions of Americans. The Senate had an opportunity to renew
these credits and deductions in a fiscally responsible manner. I hope
my colleagues will reconsider in the coming weeks and will pass a tax
extenders package before we adjourn for the year.
Despite all this, we did the right thing in passing an AMT fix. The
AMT was originally intended to prevent the wealthiest Americans from
avoiding paying any income tax. But due to inflation and various
changes in tax law, the AMT had morphed and grown--without last night's
action, nearly two and a half million families making less than $75,000
would have to pay the AMT. That is well beyond the scope of what
Congress intended when the AMT was put in place, and I am glad we could
take the necessary step to prevent that from happening.
I hope my colleagues on the House side will move quickly to get this
legislation passed. It is not perfect. Things around here rarely are.
And while this bill is fiscally irresponsible, it is equally
irresponsible to allow millions of Americans to be hit by a tax that
was never intended for them.
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