Office of Borough President James P. Molinaro
Staten Island, New York
B.P. Molinaro: “The AMT tax is destroying the middle class!”
Calls on Obama and Congress to “Stop Exploiting the Middle Class” and Repeal the Tax
STATEN ISLAND, N.Y. – Borough President James P. Molinaro today called on President Obama and the U.S. Congress to “stop exploiting the middle class” and repeal the Alternative Minimum Tax (AMT), which he says is “very slowly destroying the middle class.”
“The AMT tax is the most serious problem facing middle-class taxpayers today,” said Molinaro. “It was originally designed to prevent wealthy taxpayers from escaping tax liability, but, unlike the Consumer Price Index, the AMT was never indexed to keep pace with inflation. Had it been, the tax would affect only Americans making over $1 million per year. But by failing to index the AMT, Congress has sledgehammered an unintended tax on middle-class citizens – some earning less than $50,000 a year.
“According to the Internal Revenue Service (IRS), the AMT tax kicks in if your income is over the following amounts: $48,450 for single and head of household, $74,450 if married filing jointly or $37,225 if married filing separately,” Molinaro added. “Any income over these levels is taxed at 26%.
“This, in a nutshell, has become the middle-income family nightmare,” Molinaro continued. “The Congressional Research Service estimates that 41 million American families will be affected by the AMT in 2013. These families are the backbone of our country, working Americans such as cops, firemen, teachers, construction workers, and small business owners.
“Alarmingly, the AMT exemption is changing for the worse in the 2012.” Molinaro said. “Unless Congress takes action now, the new rates will be harming more people than ever: $33,750 for single and head of household, $45,000 if married filing jointly, or $22,500 if married filing separately.
“So as you can see, a rich man’s tax has become an unintended hardship for working Americans who are being hit with a tax on top of a tax,” Molinaro added “This law is very slowly destroying the middle-class. Neither Republicans nor Democrats can say they are for the middle-class while the AMT tax remains in place. The President wants us to believe he is ‘Mr. Middle Class.’ I call upon the President and Congress to stop exploiting the middle-class and repeal the AMT Tax.”
October 10, 2012