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A Congressman's Fight Against the AMT
Fortune ^ | June 9, 2003 | Jeffrey H. Birnbaum

Posted on 06/16/2003 3:02:03 PM PDT by bruinbirdman

The Lonely Crusade

Eight years ago, Congressman Richard Neal (D-Massachusetts) was walking down Main Street in his hometown of Springfield when an accountant changed his life. Rick Moriarty, a local CPA, pulled Neal aside to complain about a terrible injustice called the alternative minimum tax that was forcing middle-class families all over town to pay extra taxes to Uncle Sam. Only rich people were supposed to pay the AMT, but salesmen and computer engineers were getting caught too.

Neal began to receive angry letters on the subject from other AMT victims as well, none of them wealthy. Then, when he heard that workers at a nearby software company, EMC Corp., were kicked into the AMT because of stock options, he knew he had to act. "It just wasn't fair," he says. He made the cause his own and was transformed from being just another Democrat on the House's tax-writing committee into Congress's No. 1 enemy of the AMT.

It's been a long and frustrating crusade. Neal has repeatedly proposed legislation to nix the AMT and has sent a blizzard of "Dear Colleague" letters to educate fellow lawmakers about its growing hazard. He's written op-eds, hosted countless press conferences, ordered up government studies, and sat for interviews on every major TV network. To the irritation of his fellow legislators, he never lets a congressional hearing pass without grilling an administration official about the tax. On average, he says, he makes his case against the AMT in print, on-air, or in person at least six times every month, including at his own fundraisers. "I don't tire of the topic," he asserts. "From the Boston tea party to now, tax fairness is firmly parked in the American psyche."

He's even hounded the President. At the White House a couple of years ago, Neal asked President Bush, "Why don't we have a smaller tax cut and fix the AMT?" Bush said he wanted his own tax cut but knew that the AMT was a problem worth studying. Nothing came of it. This year Neal tried to substitute AMT reform for Bush's entire tax-cut plan, only to fail in committee.

Neal thinks his colleagues finally understand that an AMT crisis is looming, yet they're still unwilling to repair it. "In my 30 years in elective office I've never had more people say nicer things about my comments and then reject my solution," he says. The main sticking point is the pricetag: Dismantling the AMT would cost about $1 trillion. Besides, Congress moves only when it absolutely has to, and the AMT hasn't provoked a national outcry. To most Americans the AMT is an academic concern. "It doesn't work as a town hall meeting issue, like Medicare," Neal laments. Not yet, anyway.


TOPICS: Government
KEYWORDS: amt; taxcuts; taxreform

1 posted on 06/16/2003 3:02:03 PM PDT by bruinbirdman
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To: bruinbirdman
Oh god, you know what I thought it said?

ATM.
2 posted on 06/16/2003 3:13:34 PM PDT by 4mycountry (Japanese drain pipe is so tiny, please don't flush too much toilet papers.)
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To: bruinbirdman
The AMT is ludicrous, but so is just about everything in the Infernal (not a typo) Revenue Code of 1986. I wish Congressman Neal would support the elimination of income taxes and the implementation of a national sales tax system, but obviously Neal would never support that. Still, Neal being against the AMT, combined with his generally pro-life voting record, makes him by far the least liberal member of the Massachusetts Congressional delegation (which is a bit like calling someone "the tallest member of the Daschle household").
3 posted on 06/16/2003 3:13:59 PM PDT by AuH2ORepublican (Extremism in the defense of liberty is no vice, moderation in the pursuit of justice is no virtue.)
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To: bruinbirdman
"From the Boston tea party to now, tax fairness is firmly parked in the American psyche."

Y'know, I'm no expert, but I don't think the Boston Tea Party had anything at all to do with "tax fairness."

(But I agree that the AMT should be scrapped.)

4 posted on 06/16/2003 3:15:59 PM PDT by The Hon. Galahad Threepwood
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To: The Hon. Galahad Threepwood
I think with all things tax related, if we organize and educate we can get it (the AMT) repealed about the time my grandkids get their first social security checks.
5 posted on 06/16/2003 3:22:03 PM PDT by Goreknowshowtocheat
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To: AuH2ORepublican
"I wish Congressman Neal would support the elimination of income taxes and the implementation of a national sales tax system, but obviously Neal would never support that."

How correct you are! Mr. Neal is the one who derisively criticizes those who testify on behalf of fundamental tax reform (such as Herman Cain) reminding him that Bill Archer vowed to "pull out the code by its roots".

He is correct, of course, about the AMT, but if one were to write a book about the inequities and inefficiencies of the current system, it would be longer than War and Peace. One would have thought that Mr. Neal would have learned by now just how futile it is to try to nibble around the edges of this monstrosity.
6 posted on 06/19/2003 7:40:50 PM PDT by PhilWill
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