WASHINGTON, DC - In an effort to save thousands of middle class Rhode Islanders from being hit with a higher tax bill this year, Congress passed the Alternative Minimum Tax (AMT) Relief Act of 2007. U.S. Senator Jack Reed (D-RI), who voted for the legislation, said it will help shield over 70,000 Rhode Islanders, and more than 20 million middle class families nationwide, from exposure to the AMT this year. The average savings per family is estimated to be about $2,000.

The alternative minimum tax was enacted in 1969 to ensure that 155 untaxed millionaires who were exploiting loopholes paid at least a minimum amount of federal taxes. But it was not indexed for inflation, so over the years it has forced more middle class families to pay higher taxes.

"I am pleased Congress was able to prevent thousands of Rhode Islanders from being hit by the alternative minimum tax this year. It is imperative that we provide tax relief for middle class families," said Reed, a member of the Banking Committee. "We need to restore fairness to the tax code and permanently reform the AMT."