Senator Tom Coburn (R-Ok.) today proposed a new form of the alternative minimum tax (AMT).  He wants to take away everyday tax deductions and credits from taxpayers earning more than $1 million per year so that the government can spend that money instead.  He claims that this will only affect 1500 taxpayers–eerily similar to claims that AMT proponents made in 1969.  Just like the first AMT, Senator Coburn's "AMT 2.0" will eventually grow to include millions of American families, the same way the first AMT did.

Americans for Tax Reform supports getting rid of every tax deduction and credit cited by Senator Coburn.  However, the total tax burden on families should not grow.  Every penny raised by getting rid of or curtailing tax deductions and credits should be plowed into lower tax rates.  Senator Coburn would rather that the government spend the money.

(Incidentally, this confirms everything ATR said during the ethanol debate earlier this year: Senator Coburn is simply for higher and higher taxes on more and more Americans.  This proves it.)

What are the "tax preferences" Senator Coburn has identified?

  • Child Care Credit
  • Mortgage Interest Deduction
  • Rental Home Expenses (would, in essence, create a gross receipts tax on rent)
  • Business Meals and Entertainment
  • Gambling Losses (these are currently only deductible today to the extent of winnings)
  • Cancelled Debt Deduction
  • Electric Vehicle Credit
  • Renewable Energy Credit