Statement of Administration Policy: H.R. 7005 - Alternative Minimum Tax Relief Act of 2008

(House)

(Rep. Rangel (D) New York)

The Administration strongly supports responsible and timely alternative minimum tax (AMT) relief as proposed in the President's Budget. The Administration believes that it is imperative for Congress to act in a timely manner to protect about 26 million Americans from an unwelcome tax increase and not to repeat the unnecessary administrative complexity caused by Congressional delay in 2007. This delay made it difficult for individuals to engage in appropriate tax planning and created extraordinary administrative challenges for the Internal Revenue Service. The Administration does not believe it to be appropriate to impose a tax increase on some taxpayers in order to protect 26 million Americans from higher 2008 AMT liability – including the 22 million who would be newly exposed to the AMT – and is therefore pleased that the House is considering this measure without including tax increases. The Administration urges Congress to pass AMT relief, as well as relief for other expiring tax provisions such as those passed by the Senate, without raising taxes. Congress should deliver such legislation to the President's desk as soon as possible to reduce the risk of disruption to the 2009 tax filing season.