Idaho Congressman Mike Simpson voted to ensure that millions of middle class Americans won’t be subject to the Alternative Minimum Tax (AMT) this year. Without this fix, the AMT, an outdated and arbitrary tax originally intended only for the very wealthy, threatens average Americans with increased and unpredictable tax burdens. 

“Our nation’s tax policy has reached a crisis point with regards to the Alternative Minimum Tax (AMT).  It is abundantly clear that the AMT no longer serves its original purpose,” said Simpson. “I fully support repealing this arbitrary and complicated tax system, but I do not believe that increasing taxes to compensate for the AMT is the correct solution.”

In addition to supporting this temporary fix, Congressman Simpson is a cosponsor of H.R. 3818, The Taxpayer Choice Act. H.R. 3818 comprehensively reforms our current tax system in order to permanently eliminate the AMT without increasing taxes to pay for tax reforms.

The AMT allows the federal government to tax individuals at an arbitrary rate, regardless of the deductions and tax credits they may be able to claim. It was originally established in 1969 to ensure that multi-millionaires could not itemize their taxes away.  Since then, inflation and economic growth have made many middle-class people subject to AMT.  In 1970, the first year the AMT was implemented, 20,000 taxpayers paid the AMT.  Without congressional intervention, 23 million people will be subject to the AMT this year, forcing middle class American families to pay more taxes than they otherwise would, and making it even more difficult for our economy to grow.

“Taxpayers have the right to receive as much of their income as possible,” said Simpson. “Tax relief gives Americans back their own money, earned through hard work and sacrifice and it allows them the dignity of investing their money as they think best.  In times of economic stress, this legislation is critical to creating an environment that supports job creation and economic growth for all Americans.”

Congressman Simpson is also a cosponsor of legislation to permanently extend tax credits for families, teachers, and investors, and H.R. 510, the Tax Code Termination Act.