For Immediate Release
February 10, 2006
Contact: Gary Chandler (970) 308-0986
Congresswoman Musgrave Votes to Raise Taxes on Millions of Middle Class Families
In Another Wrong Choice for Colorado, Congresswoman Marilyn Musgrave Chose Tax Cuts for Wall Street and no Relief for American Families
Without AMT relief, more than 17 million American families will see a tax increase this year as large as $3,640.
(Fort Collins, CO) – Yesterday, Congress voted on a tax cut package that does not help working American families. Congresswoman Marilyn Musgrave chose to vote for billions in tax cuts for Wall Street millionaires but voted against extending relief to more than 17 million American families who are forced to pay the Alternative Minimum Tax.
“Here we go again,” said State Representative Angie Paccione, who is challenging Musgrave in Colorado’s 4th Congressional District. “Musgrave’s vote to raise taxes on middle class families is just another in a long list of votes that clearly show that Colorado families are being poorly represented. Musgrave consistently turns her back on families as she showers millionaire corporate lobbyists and special interests with tax breaks.”
Congresswoman Marilyn Musgrave Voted Against Relief for Working Families and for a $56 Billion in Tax Breaks for Wall Street Millionaires. The bill extends the tax cuts on capital gains and dividends for two years beyond the scheduled 2008 expiration date, at a cost of $21 billion, 36% of the cost of the bill. It does not include relief for the 17 million households who will be forced to pay the Alternative Minimum Tax this year. Capital gains and dividend tax cuts have encouraged substantial asset shifting by investors -- transactions producing commissions for securities firms. The measure channels billions of dollars through Wall Street investment banks. Households with income of less than $50,000 receive an average tax cut of less than $6 a year from the capital gains and dividend measures. Those with incomes of less than $100,000 receive an average tax cut of less than $19. In contrast, the average tax cut for households with income of more than $1 million is nearly $38,000 a year.
Meanwhile, the Musgrave-supported tax package does nothing for more than 17 million households who will be hit by the Alternative Minimum Tax (AMT) next year. The number of households subject to the AMT will increase from 3.6 million in 2005 to 19 million in 2006.
Musgrave Votes for Republican Tax Bill – The Latest Attack on the Middle Class. The bill raises the taxes of nearly 17 million of America's middle-class families, by leaving out a provision to protect them from tax increases under the Alternative Minimum Tax (AMT). The AMT tax bill was just a sham, and is likely to go nowhere.
“Musgrave knowingly and deliberately will increase the taxes on more than 17 million middle-class working families this year,” said Angie Paccione. “She’s out of touch with Colorado families.”
About the Alternative Minimum Tax
The AMT grew out of a tax that was first enacted in 1970 after it was revealed that some high-income households had paid no income taxes in prior years. More people will be subject to the AMT in the future largely because the AMT exemption amounts have not been indexed for inflation. Regular tax brackets and regular tax personal exemptions are indexed for inflation each year to prevent bracket creep, an automatic upward shift in the marginal income tax bracket through inflation. More and more people will be subject to the AMT, not because they are making more money in real dollars, but just through the effects of cost of living adjustments in their wage income.
For most of its existence, the AMT has affected few taxpayers, less than 1 percent in any year before 2000, but its impact is expected to grow rapidly in coming years and affect about one-fifth of all taxpayers (31 million) in 2010.
About the Capital Gains & Dividends Tax Breaks
Capital gains and dividend tax cuts have encouraged substantial asset shifting by investors -- transactions that channel billions of dollars through Wall Street investment banks. Households with income of less than $50,000 receive an average tax cut of less than $6 a year from the capital gains and dividend measures. Those with incomes of less than $100,000 receive an average tax cut of less than $19. In contrast, the average tax cut for households with income of more than $1 million is nearly $38,000 a year.
About Angie Paccione
Angie Paccione is currently the State Representative from District 53 in Northern Colorado. She is running against Marilyn Musgrave for the 4th U.S. Congressional District of Colorado. In the State House of Representatives, Paccione has made healthcare, education, and jobs her main priorities.