Doolittle supports reform bill to simplify tax code
Rep. John T. Doolittle, R-Roseville, co-sponsored H.R. 3818 by Paul Ryan (R-WI) which would correct two glaring problems with the current tax code, according to a press statement released today by the congressman.
The bill would permanently repeal the Alternative Minimum Tax and would create an alternative tax system that is fair, simple, and that reduces the burdensome filing requirements for many Americans.
In addition to eliminating the AMT, H.R. 3818 creates a simplified income tax system with a 10 percent rate on taxable income up to $100,000 for joint filers and $50,000 for single filers, and a 25 percent rate on taxable income above this amount, according to the Doolittle press statement.
A set deduction of $25,000 for joint filers and $12,500 for individuals would also apply. Each taxpayer would have the option of choosing whether to adopt this simplified tax code or to use the current system, the press statement said.
“The complexity of our current system wastes thousands of hours that Americans could use for more productive activities,” Doolittle said.
“The AMT is a growing beast within the tax code that was a bad idea to begin with and is now completely outdated. Congress should immediately repeal this flawed provision for the 30 million Americans who may be shocked this year with increased taxes by a provision that was only supposed to affect only 155 wealthy individuals,” Doolittle concluded in the press statement.
The Alternative Minimum Tax was created in 1969 as an add-on to the existing tax code aimed at 155 wealthy taxpayers. Since the AMT was never indexed for inflation, it will affect over 30 million taxpayers this year – almost all of whom are not the intended targets of the increased tax. Without repeal, families making $75,000 could be subject to a higher tax bill due to the AMT, according to the press statement.