Part of the reason Americans are so pessimistic about their financial future is they are uncertain how they will be taxed from one year to the next, Garrett said. One-year fixes to the problem are no longer acceptable; we need a permanent solution to address the problem once and for all.

Lowey added: Congress must increase the AMT exemption levels to protect millions of middle-class taxpayers from a tax burden they were never intended to shoulder.

Under current law, married couples are exempt from the AMT if they make less than $74,450, or individuals if they make less than $48,450. But on Jan. 1, those exemption levels will drop to $45,000 and $33,750, respectively.

Garrett and Lowey said an estimated 34.4 million people will be subject to increased taxes through application of these new minimum levels. Under their bill, the $100,000 and $75,000 exemption levels would rise with inflation.