IV

104TH CONGRESS

1ST SESSION H. CON. RES. 110

Expressing the sense of the Congress that the current Federal alternative

minimum tax requiring all corporations and individuals with substantial

economic income to pay minimum taxes should be retained.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 25, 1995

Mr. HINCHEY (for himself, Mr. BONIOR, Mr. STARK, Mr. GONZALEZ, Mr.

SCHUMER, Mr. EVANS, Mr. BEILENSON, Ms. KAPTUR, Mr. FILNER, Mr.

SANDERS, Mr. WYNN, Mr. FATTAH, Mr. FROST, Mr. OBEY, Mr. RAHALL,

Mr. CLAY, Mrs. MINK, Mr. ENGEL, Ms. WOOLSEY, Mr. VENTO, Mr.

KENNEDY of Massachusetts, Ms. MCKINNEY, Mr. MEEHAN, Miss COLLINS of Michigan, Mr. BALDACCI, Mr. SERRANO, Ms. PELOSI, Mr.

FRANK of Massachusetts, Ms. DELAURO, Mr. SPRATT, Ms. SLAUGHTER,

Ms. VELA ́ZQUEZ, Mr. OWENS, Mr. CONYERS, Ms. NORTON, Mr. MILLER

of California, Mr. HASTINGS of Florida, Mr. WATT of North Carolina,

Mr. DEFAZIO, Mr. OLVER, Mrs. LOWEY, Mr. FARR of California, Mr.

BECERRA, Mr. PAYNE of New Jersey, and Mr. MARTINEZ) submitted the

following concurrent resolution; which was referred to the Committee on

Ways and Means

CONCURRENT RESOLUTION

Expressing the sense of the Congress that the current Federal alternative minimum tax requiring all corporations

and individuals with substantial economic income to pay

minimum taxes should be retained.

Whereas a fundamental principle of the American tax system

is to raise revenue on individuals and corporations in relation to their ability to pay;
2

•HCON 110 IH

Whereas a fundamental principle of the American tax system

is to encourage certain types of economic activities beneficial to society through the creation of various tax preferences;

Whereas these fundamental principles conflict when tax preferences are utilized by individuals and corporations to

avoid tax liability entirely;

Whereas the public good is harmed in instances in which corporations and individuals with substantial economic income pay little or no taxes;

Whereas the alternative minimum tax was created under section 55 of the Internal Revenue Code on a bipartisan

basis in 1986 to ensure that no taxpayer with substantial

economic income avoids significant tax liability by using

exclusions, deductions, and credits;

Whereas the alternative minimum tax requires thousands of

profitable corporations and individuals to pay Federal income taxes each year that would otherwise have little or

no tax liability;

Whereas the alternative minimum tax has raised over

$35,000,000,000 in revenues since its enactment;

Whereas small businesses are protected from tax liability

under the alternative minimum tax due to the $40,000

exemption;

Whereas the alternative minimum tax was recently improved

and streamlined by Congress under the Omnibus Budget

Reconciliation Act of 1993;

Whereas repeal of the alternative minimum tax would allow

an estimated 76,000 firms representing 18 percent of

United States business assets to escape paying any income taxes in a given year;
3

•HCON 110 IH

Whereas repeal of the alternative minimum tax would deplete

the Treasury of an estimated $36,000,000,000 over 10

years;

Whereas reports of wealthy corporations and individuals who

escape paying income taxes would reduce the willingness

of other taxpayers to comply with tax laws: Now, therefore, be it

1 Resolved by the House of Representatives (the Senate

2 concurring), That the current alternative minimum tax on

3 profitable individuals and corporations should be retained

4 as part of the Internal Revenue Code of 1986.

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