Max Baucus: “I wish to make the very simple but very important point that given the choice, given the alternative between an…”

“I wish to make the very simple but very important point that given the choice, given the alternative between an extension of dividend and capital gains tax provisions compared with the AMT change, it is far better for this Congress to grant the alternative minimum tax relief than it is to grant an extension of the dividend and capital gains tax reduction. First of all, the current law provides, under what is called the alternative minimum tax--which taxpayers who have certain incomes will pay, basically middle-income taxpayers--that this year they will be paying more taxes if we do not change the law. And 17 million Americans will be paying more taxes than they would pay under an ordinary calculation of their income under the Tax Code. To say the same thing differently, because of this provision called the alternative minimum tax, 17 million more Americans will be paying more taxes--actually 20 million. Three million Americans this last year paid more taxes because they fell under the alternative minimum tax. Next year, if we do not make changes for tax year 2006, 17 million more will be paying it, for a total of 20 million. If we do not make these changes, 20 million Americans will be paying increased taxes next year, and those 20 million are essentially middle-income taxpayers. To contrast that with dividend and capital gains, current law provides for lower dividend and capital gains taxation.…”