UFE Joins Outcry Against Borrowing More to Pay for AMT

UFE joins outcry as Congress considers borrowing more money to pay for a tax break for well-off Americans

United for a Fair Economy joins 25 state and national organizations calling for Congress to fulfill its commitment to follow PAYGO rules as it considers how to fix the Alternative Minimum Tax (AMT). An AMT proposal is expected to pass before the end of this year.

PAYGO, short for "pay-as-you-go," requires "paying" for a tax cut, such as the AMT fix, by reducing spending or raising revenue elsewhere in the same amount as the new tax cut. For the first time in several years, Congress voted early this year to abide by PAYGO rules.

In 1969, when tax writers created the Alternative Minimum Tax for multi-millionaires and billionaires who paid zero taxes by using loopholes, they neglected to build a way to account for inflation into the legislation. Thus, every year, the AMT hits more and more Americans in the top 5%--an estimated 23 million this year.

Democrats in the House of Representatives are proposing to make a temporary fix to the AMT that would last one year, and cost $50 billion over 10 years.

Everyone agrees the AMT needs fixing, as it was not intended to tax Americans whose income is as low as $75,000. Democrats want to pay for the one-year patch by closing tax breaks for the wealthy, including private equity executives, venture capitalists, multinational corporations and hedge fund managers. President Bush and most Republicans do not want to follow PAYGO. They prefer to increase the deficit by borrowing more money from Japan or China.

UFE stands with non-partisan organizations like the Concord Coalition and the Committee for a Responsible Federal Budget in calling for Congress to honor its word and use PAYGO principles as it proposes an AMT fix.

Please help get the message through by writing a letter telling Congress to address the AMT in a way that does NOT increase the national debt.

For questions, contact lfarris@faireconomyg.org">Lee Farris.lfarris@faireconomy.org">