NFIB

Lawmakers Look Toward AMT Relief
09/17/2007

As Congress settles in after its summer recess and prepares for the new fiscal year, it is expected to address the alternative minimum tax again this fall, most likely extending the exemption another year. While we continue to fight for full repeal of this harmful tax, we will focus our efforts on ensuring small businesses are included in any temporary extension passed in the coming months.
 
The AMT is a complex provision enacted 40 years ago when Congress discovered the wealthiest citizens were finding loopholes to avoid paying their fair share of taxes. However, the AMT was never adjusted for inflation, and now many middle class taxpayers and small-business owners find themselves subject to the tax. It's estimated that the number of taxpayers affected by the AMT will increase from approximately 1.8 million in 2001 to more than 41 million by 2013.
 
Though Congress has repeatedly passed temporary relief from the AMT, permanent relief is needed to ensure small-business owners don't slip through the cracks to face an exorbitant tax bill. While we applaud any exemptions passed this fall that include small business, we will continue to push for true reform--permanent relief--as well.
 
Calculating whether you must pay the AMT is not easy, and small-business owners have had to spend money they otherwise would use toward growing their business on hiring tax professionals just for the AMT alone.
 
"Small-business owners are already overburdened by the complex tax code," says Dan Danner, NFIB executive vice president. "The AMT forces millions of taxpayers to fill out a 12-line worksheet, read eight pages of instructions and complete a 55-line form to determine whether they must pay this unfair tax."