Posted: May 08, 2005 By: Tom Schrepel

Subject: We need legislation to fix the problems AMT causes

Comment: I am asking for legislation to address the financial difficulties my family has endured since falling victim to substantial Alternative Minimum Tax (AMT) because we exercised (but did not sell) Incentive Stock Options (ISOs) in tax year 2000. We were unable to sell the shares due to company insider restrictions. As a result, we paid over $2 million in AMT tax on paper gains, without a chance of ever seeing credit, since the stock has decreased by over 99% since I exercised the shares. We effectively paid tax equal to 10 years of average income and we continue to pay substantial tax every year.

I am not a wealthy executive. I am a 46 year-old sales representative that received the ISOs because I joined a company before they were well known and opened a territory for them and made them well-known. My wife, Velinda , is a stay-at-home Mom that for our 8 year-old daughter Emma and 4 year-old son Quinn. We are are working and contribute substantially and we have been victims of a poorly written, confusing, and outdated tax law that will confront thousands more middle class families every year. It must be addressed now. Similar legislation has been passed for businesses and previous legislation for individuals has had bipartisan support and has had substantial support from democrats. It is time republicans step up and make something.

Tom Schrepel