U.S. Representative Sandy Levin
12th District of Michigan

(Washington D.C.)- U.S. Rep. Sander Levin (D-MI), a senior member of the House Ways and Means Committee, today spoke on the House floor in favor of a measure that provides assistance for millions of middle-class families by extending relief from the Alternative Minimum Tax (AMT) – H.R. 4096, the Stealth Tax Relief Act of 2005, passing 414 to 4. However, Democrats argued that the AMT stand alone tax bill was simply a political maneuver by the Republican Majority before they bring up their tax reconciliation bill that does not include AMT relief, but instead awards $21 billion in additional tax cuts that would benefit the very wealthy – nearly half of the cuts go to those who make over a million dollars annually.

“The Republicans are using this ‘Stealth’ bill for cover,” said Rep. Levin. “Democrats proposed dealing with the AMT now, but the Republicans in committee approved a bill that said ‘no’ to AMT relief.  Instead of passing a reconciliation bill tomorrow that helps millionaires and ignores the millions of Americans affected by the AMT, the Republicans should go back and get it right so they don’t have to use a Stealth bill for cover.”

Knowing the stand alone AMT bill has no momentum in the U.S. Senate, House Republicans brought up the AMT relief bill today to disguise their real aim of providing tax cuts for the very rich. So, Republicans will vote “yea” on this bill, before they vote “nay” tomorrow on the Democratic alternative that guarantees AMT relief.

Does the Middle-Class Really Benefit From the Republican Plan?

Republican Approach 

Middle-Class Americans

taxpayers earning below $40,000 per year – majority of taxpayers 2 % of Capital Gains and Dividend Tax Cuts extending through 2010 = $7 a year 

The Very Rich
individuals making over a million dollars a year – one in 500 households 

Nearly 50% of Capital Gains and Dividend Tax Cuts extending through 2010 = $32,000 a year 

Democratic Approach

Provides AMT relief for couples earning less than $200,000 per year

“Republicans offer merely crocodile tears instead of real action,” said Levin. “Republicans had the choice in their reconciliation bill to either help the one percent of Americans making more than a million a year, or help those making between $75,000 and $100,000 per year. They chose to help the millionaires.”

“The Republican reconciliation package pays for tax cuts for the very wealthy by slashing programs that help parents and kids who rely on child support, students, and working class families. We should not be playing political games giving middle-class Americans false hope of tax relief,” concluded Levin. 

Originally created to stop the very richest of taxpayers from using tax breaks to avoid all or most of their income taxes, the AMT has increasingly affected millions of middle-class families. The AMT will hit 3.5 million taxpayers this year and affect 19 million Americans next year, primarily targeted at the middle-class. More than half of all couples with two kids and incomes between $75,000 and $100,000 will have to pay AMT next year. However, the AMT does not hurt the very rich having virtually no impact on individuals making $500,000 or more a year.

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