With the introduced the AMT Rate Reduction Act of 2007, I hope to provide much needed relief to the burgeoning number of American taxpayers who are impacted by the Alternative Minimum Tax (AMT).  The proposal, paired with a continued extension of the AMT exemption, will save millions of taxpayers from the unintended burden of the AMT.

This legislation is aimed at reversing the ill-conceived tax increase enacted during the Clinton administration.  It will reduce the rate to a more manageable 24%.  If signed into law, the AMT Rate Reduction Act will reduce both the burden of the AMT on all affected taxpayers, as well as reduce the number of taxpayers slugged by this tax.

This proposal offers a common sense, straight forward approach to removing the burden of a stealth tax which was initially intended to hit a small group of millionaires.  It clearly missed its mark.

In recent years, an increased number of middle-income taxpayers have been finding themselves subject to this unclear and confusing tax. The AMT is often difficult to calculate and punishes taxpayers for having children and living in high-tax states. It is estimated that the number of taxpayers subject to the AMT increased from 3.5 million in 2006 to 23 million in 2007.  In California alone, an estimated 4,434,000 taxpayers were subject to the AMT this tax season.