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 COL-
LINS 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 Fed-
eral 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 re-
lation to their ability to pay;
•HCON 110 IH
Whereas a fundamental principle of the American tax system
is to encourage certain types of economic activities bene-
ficial to society through the creation of various tax pref-
erences;
Whereas these fundamental principles conflict when tax pref-
erences are utilized by individuals and corporations to
avoid tax liability entirely;
Whereas the public good is harmed in instances in which cor-
porations and individuals with substantial economic in-
come pay little or no taxes;
Whereas the alternative minimum tax was created under sec-
tion 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 in-
come 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 in-
come taxes in a given year;
•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, there-
fore, be it
Resolved by the House of Representatives (the Senate
concurring), That the current alternative minimum tax on
profitable individuals and corporations should be retained
as part of the Internal Revenue Code of 1986.
Æ