FOR IMMEDIATE RELEASE
UNION OF ORTHODOX JEWISH CONGREGATIONS WELCOMES LEGISLATIVE “PATCH” PREVENTING THE ALTERNATIVE MINIMUM TAX FROM BURDENING MIDDLE CLASS FAMILIES; CALLS ON CONGRESS TO ENACT PERMANENT “AMT” REFORM IN 2008
The Union of Orthodox Jewish Congregations of America, the nation’s largest Orthodox Jewish umbrella organization, welcomed the U.S. Congress’ passage and President Bush’s signature yesterday of legislation which prevents the federal Alternative Minimum Tax (“AMT”) – a decades old measure originally intended to ensure the wealthiest Americans pay their fair share of taxes – from burdening millions of American families with increased taxes this spring.
The one year “patch” will save nearly 23 million taxpayers from owing about $2,000 extra under the AMT system. The biggest savings will go to taxpayers earning $172,000 to $455,000, but more than 56 percent of taxpayers earning $84,000 to $121,000 will save an average of $1,425.
Nathan Diament, director of public policy for the Union stated:
The Orthodox Jewish community will greatly benefit from the enactment of the AMT patch. Our community is a comprised of large families typically living in areas with high state tax rates – the very demographic hit hardest by the unrestrained AMT. This reality is compounded by the financial burden which our families bear from paying – out of after-tax income – the necessary tuitions for our children to attend Jewish parochial schools.
The Orthodox Union applauds congressional leaders – including Senators Reid, McConnell, Baucus and Grassley, and Representatives Pelosi, Boehner, Rangel and McCrery – as well as President Bush for getting this critical temporary legislation enacted now.
Nonetheless, the threat of a greater tax burden on middle- and upper-middle income families by virtue of an unreformed AMT system continues to loom. We call upon these leaders to take on the critical task of enacting permanent reforms to the AMT early in 2008 so that federal tax policy is sensible and family friendly for the foreseeable future.
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