Changing the Alternative Minimum Tax

LOBBYING CONGRESS TO CHANGE THE ALTERNATIVE MINIMUM TAX

This research paper discusses how one would go about lobbying Congress to modify the alternative minimum tax (AMT). The basic approach would be to seek a dilution of the impact of the AMT particularly on the middle class (but not its elimination) by fashioning a change in the law which would appeal to key Congressional committee members in both parties, building grassroots support for it among key Congressional constituencies and enlisting the assistance of various interest groups. An important ancillary lobbying effort would be directed at the George Bush administration which might otherwise frustrate these efforts.

Need for Legislative Changes in the AMT

The AMT was first included in the Internal Revenue Code (IRC) in 1969 and has since been expanded by legislative amendments, especially under the Tax Reform Act of 1986. The AMT was designed to ensure that all taxpayers, especially wealthier ones, paid a minimum tax which was higher than would be due if all otherwise allowable exemptions, deductions and credits were given full effect in the computation of the federal income tax due from a taxpayer in any given calendar year. Each taxpayer computes his tax due in the normal way, then he or she must complete a special AMT schedule under which the taxpayer is given a specific AMT exemption against adjusted gross income which in 2001 was $33,750 for single taxpayers, then his or her exemptions, itemized deductions,

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f Representatives and is presently being examined by the Senate Finance Committee which will shortly hold hearings on it. The Chairman of the Senate Finance Committee, Republican Charles Grassley, has already indicated, according to Rosenbaum, that he intends to include AMT provisions in the Senate version of the tax bill (p. A14). Wittenberg & Wittenberg (1994) emphasized the importance of obtaining a Congressional sponsor for the bill who can shepherd it through the Congress, the ideal such person being "a chairman or a senior member of the correct subcommittee who is philosophically attuned to your cause" (p. 36). Before approaching Grassley, however, it would be wise to consult with the Committee staff and Grassley's senior personal staff. According to Berry, the best relationships "are usually begun and nurtured at the staff level," due to the enormous influence Congressional staffers have in framing the issues and briefing their members (p. 184). de Kieffer, however, pointed out that "it is essential that you be in direct personal contacts with congressional allies" and "swing members" (p. 105). A frequently used techniques is the Hill Blitz, a concentrated in time series of personal meetings with critical legislators. Muc

Category: Government - C