Idaho Congressman Mike Simpson voted today against H.R. 3996, the Temporary Tax Relief Act of 2007, a bill that raises taxes by $70 billion to temporarily fix the Alternative Minimum Tax (AMT) for one year. Despite strong opposition from Congressman Simpson and other Republicans, the legislation was able to pass the House of Representatives with a vote of 216-193. 
 
“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.”
 
Congressman Simpson is a cosponsor of H.R. 3818, The Taxpayer Choice Act. Unlike H.R. 3996, which is unlikely to pass the Senate in its current form and would be vetoed by the President, H.R. 3818 eliminates the AMT without adding new taxes.
 
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. The AMT forces millions of American families to pay more taxes than they otherwise would and harms economic growth. 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.
 
“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.”
 
H.R. 3818 comprehensively reforms our current tax system in order to eliminate the AMT and provide individual taxpayers with a simplified alternative tax system. Most importantly, H.R. 3818 does not increase taxes to pay for tax reforms.
 
“The robust economic growth in this nation over the past few years is proof that individual Americans use and invest their dollars much more wisely than does the federal government. This is why I strongly support making the tax cuts passed by Congress in 2001 and 2003 permanent and passing real tax relief, not just rhetoric,” said Simpson.
 
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.