Reynolds proposes tax relief bill to help WNY residents
Congressman Tom Reynolds, R-Clarence, recently introduced the “Stealth Tax Relief Act of 2005.”
This act extends the alternative minimum tax (AMT) relief for Western New York middle-class taxpayers who could fall victim to this stealth tax.
“It’s called the alternative minimum tax, but in reality it should be called the stealth tax because it sneaks up on so many taxpayers,” Reynolds said.
“Although the AMT was designed to prevent a small number of taxpayers from paying little or no income tax, it has begun to trap more and more middle-class taxpayers here in Western New York.” This year, 379,000 New York taxpayers are affected by the AMT.
If AMT relief is not extended for 2006, the number of New York taxpayers affected by the AMT will increase to 1.6 million.
Those additional 1.3 million taxpayers each would pay $4,188 more in taxes.
“It would be crushing to thousands of Western New York families and taxpayers to increase their tax burden by more than $4,100,” Reynolds said.
“My bill ensures that the higher AMT exemption amounts for 2005 are extended to 2006 and includes a modest adjustment for inflation.”
He continued, saying, “These are important steps to take to ensure that millions of Americans are not snared by this hidden trap.”
Specifically, the exemption amounts are $58,000 for joint returns and $40,250 for single filers.
If this legislation were not enacted those amounts would revert back to 2000 levels, $45,000 for joint returns and $33,750 for single filers.