Senator Gordon Smith: AMT tax to hit 20 Million Americans

From Senator Gordon Smith Press Release:

Sen. Smith: Don’t Raise Taxes on Oregon’s Families
Advocates for immediate action to prevent massive new tax on 20 million Americans

Washington, DC — Senator Gordon Smith today advocated for Congress to take immediate action to prevent upwards of 230,000 largely middle-income Oregon households from having to pay a major new tax. Senator Smith wants Congress to act before the end of 2007.

“Congress continues to hit the snooze button on reforming the Alternative Minimum Tax,” Smith said. “Oregon families are about to get thumped by this unfair and expensive tax. It is time to wake up and take action.”

This spring, Senator Smith was one of 44 Senators pushing to permanently repeal the AMT on the floor of the U.S. Senate. The legislation failed to move. Senator Smith has continued his efforts to repeal the AMT.

The Alternative Minimum Tax was enacted by Congress in 1969 to ensure that high-income Americans paid a fair share of taxes; that no taxpayer could avoid paying taxes by using exclusions, deductions or credits. Initially, the AMT applied to fewer than 20,000 higher-income taxpayers. The AMT was not indexed for inflation, and as a result, an increasing number of middle-income Americans are paying AMT. If Congress does not take action to correct or repeal the AMT before the end of 2007, upwards of 20 million middle-income households nationwide will be subject to the AMT.

Fast Facts on the AMT in Oregon

— In 2007, 230,000 additional tax filers, the great majority of which are middle income families, will be hit by the AMT that were not impacted last year
— Nearly 17% of all Oregonians tax filers will be hit by the tax if Congress doesn’t act — a 14% increase from 2005
— In 2005, less than 3% of Oregonians tax filers were subject to the AMT
— The current average additional cost of the AMT to tax filers is over $4,300

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Posted by at 06:03 | Posted in Measure 37 | 22 Comments |Email This Post Email This Post |Print This Post Print This Post
  • Homer

    AMT stands for
    Accelerating Monster Tax.

    Please Mr. Smith, take this out to the pasture.

  • Britt Storkson

    Senator Smith claims to look out for the average citizen but his actions prove otherwise. I was swindled out of $1200.00 by a local power company here in The Dalles Wasco Electric Co-op. I appealed to Senator Smith to get my money back. He refused, choosing to protects the rich and powerful, not the average citizen.
    When an illegal alien murders an Oregon State Patrolman during a routine traffic stop Senator Smith gives him $1 million. When a tax paying, law abiding citizen loses $1200.00 because the power company lawyer wanted to make more money Senator Smith gives him the finger.
    No wonder Republicans have a hard time winning elections.

    • CRAWDUDE

      Didn’t you write the exact same post about a State Senator too? Almost looks like a cut and paste job, e.g. insert GOP’ers name here.

      The Utilities Commision is chosen by the DNC’ers, what did the say when you appealed to them?

    • Captain_Anon

      Needless to say, i’m SURE there is more to this story than the paltry facts you have provided

      • CRAWDUDE

        I was curious why the Sen. Wyden and various other people from the other major party didn’t earned Britts ire as well.

        • Captain_Anon

          Touche

  • Jerry

    I guess the guy is not too effective if the legislation failed to move. What good is that. Maybe he is not “pushing” very hard, if you know what I mean.
    How can we trust these buffoons anymore? They can pass a bunch of stupid, meaningless stuff all the time. Something important like this “fails to move”.
    What a joke.

  • Anonymous

    He needs to be as active on AMT as he is on increasing tobacco tax. Kind of a contrast don’t you think. Increase tobacco taxes on low income people. then ask to lower income taxes on all.

    I do agree with him about the AMT. As a tax preparer I can tell you it has a severe economic impact on taxpayers most of whom it was never intended for. I see it as a tax increase levied without fanfare. What better way to increase taxes on all of you than to just let you slide into it without your knowledge.

  • Jeff

    Britt,

    Sen. Smith is not the proper level to take such complaints – the State AG and the PUC is. Try them instead.

    • Anonymous

      Jeff, you make my point. Electric Co-operatives in Oregon are exempt from PUC regulation. Funny that Senator Smith can deliver billions of dollars of pork (other people’s money taken by force – taxation) on demand yet claims to be powerless when it comes to helping an average citizen.
      Anybody wonder why Republicans don’t win elections anymore.

      • Captain_Anon

        it’s not a congress member’s job to give personal attention and help to every single person in their state. taking up every cause is impossible. so they choose those that are the most aggregious or they can impact the most. my guess is that there are facts you left out that made your case less doable. and as a result, you’re bitter that you didn’t get the personal attention you feel entitled to.

        • Britt Storkson

          Yes, Captain I have left out some facts in the interest of space. Not only did Wasco Electric Co-op attempt to take my property because their lawyer so their lawyer could make more money but they threatened to sue me – and, I assume, – anybody else that questions anything they do.
          Another fact: Had YOU been swindled out of 12 cents you would be squealing like a stuck pig!
          Is that what you want our government to be?

  • CRAWDUDE

    Hey, I hear liberals around this state wanting to tax segments of the population, control how they develop their land etc….

    AMT is horrible but it hits liberals, conservatives, moderates, smokers, non-smokers etc… all the same way. Now all of a sudden THIS tax is horrendous according to tax and spend liberals………probably because it hits them too!

    You rich liberals should have to pay more! Cuz you’re rich and have plenty of money to spare. If you can’t pay your AMT sell some of the land you have (after M49 prices of course).

    Not too fun when other people want you to pay more and they get off scot free is it, makes ya feel a little powerless doesn’t it. Don’t worry rich liberals, they’ll change the AMT laws…………just before the 2010 election when Bushes tax cuts go away.

    Class war only works when you aren’t a part of it, isn’t that right my liberal friends.

  • Jared

    So more rich people are going to be hit by the tax? Just calling them “middle class” doesn’t make it so. How much money are they making?

    The real problem is that we have too many deductions and subsidies, so people are getting tax breaks on second homes and luxury items.

    • CRAWDUDE

      Jared, what you just stated was actually what the AMT was originally designed to prevent. Under the AMT you can’t use those write offs to decrease your tax bill.

      People aren’t angry about the AMT they’re angry that they fall under it now……………as long as it was the other person it was fine.

      When the Bush income tax cuts disappear is 2010 I’ll be the one getting hit and the folks getting nailed now by the AMT now will be adjusted out of the AMT bracket.

      You see, as liberals sniveled that Bushes tax cuts were for the rich they refused to inform the public that the rich would increasingly fall under the AMT thus increasing their tax burden. In essence, Bushes tax cut were actually an increase to the rich and a cut to the middle and lower income classes.

      Don’t worry though, the liberals will remedy that in a couple years and the middle class will return to paying an uneven portion of the income tax burden.

    • Sybella

      You can be hit with AMT. No it isn’t too many deductions and subsidies. You don’t have to make much money to be hit with it. You do not know what you are talking about. Get off the rich kick and do some research. THe IRS has countless publications that will explain it all to you. You don’t have to be rich, you don’t have to have a lot of deductions. Just having one to many children can throw you into AMT because AMT is always figured when your tax return is prepared, or should be, AMT denies the exemption credit for you and your family. You don’t have to take one single deduction and it can hit you. IRS is checking returns to see if they are subject to AMT. Yours could be it if you make as much as $40,000 per year.

      Get educated before you talk about something. If you have a home and a camp trailer, guess what you have a second home if it has a bathroom and running water, so is your fishing boat if it has the same. For a lot of people, those are not luxury items.

      I’m middle class, I pay a lot in taxes. I think that’s unfair. I work hard for my money.

      My taxes go to people who get large Earned Income Credits because they don’t make much money. OK, I think its another handout, but do understand how hard it is to not earn a lot and have a family to feed.

      That is neither here no there, I’m just irritated because you spout the same old tired junk and haven’t bothered to see if any of what you say is true.

  • Captain_Anon

    i find it interesting the author tries to pass this off as “a major new tax.”

    it’s not. its been on the books since 1969 or so. i wish authors on both sides would be genuine and honest in thier writing.

    in a bit of irony here, this tax hasn’t been indexed to take into account inflation and everyone is up in arms. the gas tax hasn’t been indexed for inflation and people are fine with it and actually get pissed if it WERE indexed for inflation.

    • CRAWDUDE

      Good points Capt.

      • Anonymous

        Actually it is a new tax to those who have never had to deal with it before. Most of them had the AMT confused with the ATM

  • Jerry

    The problem here is that the ATM is stupid policy enacted by stupid people.

    • Crawdude

      Since ATM came up , let me give you a direct quote from Ron Wyden when he was campaigninf for his 1st Senotorial term. ” A year after I am elected the banks will no longer be gouging the people with ATM fees”

      To date, he has yet to introduce any legislation to follow through on the campaign promise (fooled me, I actually voted for him that election).

      I know this was off subject but it looked like the AMT thread was played out 😉

      • Crawdude

        oops, senatorial…

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