WASHINGTON, April 23 (UPI) -- Democrats in the U.S. House of Representatives said they will shift the alternative minimum tax off middle-class Americans and to the richest families.
"A huge number of families will receive tax relief as the result of this," said U.S. Rep. Chris Van Hollen, D-Md.
The plan would try to restore the original purpose of the tax, created in 1969 to nab wealthy people who used loopholes and deductions to eliminate their tax bills, said House Democrats.
Over the years, the number of people forced to pay the tax has increased. As written now, the AMT is projected to affect nearly 20 percent of taxpayers, some of whom would earn as little as $50,000 a year, when they file next spring.
Under the Democrats' plan, taxpayers earning more than $500,000 annually would take a much harder tax hit, The Washington Post reported Monday.
U.S. Rep. Paul D. Ryan, R-Wis., calls that a "job killer" that would punish small business owners.