Prefiled Bill Intends to Repeal the Alternative Minimum Tax

House Republicans are taking aim at repealing an alternative minimum tax on businesses.

The tax is designed to make sure all businesses pay some level of state taxes. But those with high sales and low profits are hit the hardest.

According to business owners with low profit margins, their tax bills increased even when they made little or no net profit. Some lawmakers are even calling the tax a burden that has been killing small businesses in Kentucky.

The House Republican leadership held a news conference Monday, Dec. 11, 2006, in Frankfort, Ky., to prefile a bill to repeal the tax, which was approved by the Legislature in 2005.

According to the Associated Press, House Speaker Jody Richards of Bowling Green, Ky., calls the tax un-American.

State Rep. Jim Decesare said the tax has had some unintended consequences. The plan would eliminate the alternative minimum tax on January 1, 2008.