Subject: AMT Comment: March 31, 2005 Senate Finance Leadership Honorable Chairman Charles Grassley Honorable Ranking Member Max Baucus I am writing to ask for your support and would appreciate your taking a moment to read this letter. I feel compelled to increase your awareness about an issue which is causing devastation amongst your constituents; the inequitable taxation of individuals via the Alternative Minimum Tax (AMT) code of 1986. This has become a particularly critical issue for many Americans this tax season. In my case, while I have been paying AMT taxes for the last 3-4 years, my last tax return for the 2004 year has caused me to pay an additional $6,000 of taxes! I am a 57 year old father of 4 children having now sent two of my four children through college without any financial aid. My fear is that by the time my twins are ready for college (in 3 years), I may not be as well prepared to pay for their education since money I planned to save for this goal is being diverted to the AMT tax. In effect, this may cause me to liquidate some of my retirement money to meet this expense. Obviously, this is not something I want to do with retirement not that far away. I have no issue with diligently paying my fair share of taxes and have done so throughout my working years. My wife and I, while very good income earners, are not rich. The cost of raising a family, property taxes, medical expenses, etc. all cut into my savings plans for both college and retirement. The additional costs of this AMT penalty is therefore, putting undue stress on our family and specifically, affecting our goals. For me, the AMT effect has nothing to do with stock sales or stock options but for the fact that the AMT is not modified or tied to inflation year on year. I believe this is an unfair tax process and normal, middle class families are being penalized for being hard working, independent citizens whose only fault is that they are living the American dream. This tax is misguided and can lead to dangerous economic consequences for middle class families if not corrected and does not serve the interests of the IRS, nor does it serve the common good for honest, hard working Americans. As you may be aware a number of House and Senate bills to reform AMT are now on the floor for consideration. In the House, HR1487 and HR2794 deal with the immediate needs. In the Senate, S.1324 is the companion bill to HR2794. Your vote is needed, now, to circumvent the damage being caused by the existing law. We respectfully ask that you further investigate the disastrous consequences of the Alternative Minimum Tax and please support all efforts towards reform. Sincerely, Paul and JoAnn De Martinis Kinnelon, NJ 07405 |