Repeal the Bush Tax Cuts While You're At It

[...]

First, he asked, "How can we improve the economy of the United States of America?" Second, he wants to "make sure there is a sense of fairness" to the tax code.

The key, Rangel made clear, is that any tax reform proposal should assume that Congress will eliminate the alternative minimum tax.

That tax is hitting harder at middle-income families and must be abolished, he said. "We have a responsibility to address the problem presented by the AMT," he said.

But eliminating the unpopular AMT would cost federal coffers $872 billion over 11 years, leaving Congress with no choice but to offset the loss. "We have to look at the entire tax code," Rangel said.

Congress created the AMT in 1969 to ensure that the wealthiest Americans would pay at least some taxes, even if they made extensive use of tax shelters and loopholes.

But because the AMT failed to take inflation into account, it hits more and more families that take deductions and exemptions for mortgages and children. For example, in the 2007 tax year, the AMT would be triggered if a typical tax filer with four dependent children had income of just $56,841.

[...]