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Hon. John W. Snow, Secretary, U.S. Department of Treasury,
Addresses ACCF Forum
ACCF Capital Formation Forum
April 2004
Secretary John W. Snow is unwilling to rest on the laurels he has earned
as a member of the team that has masterminded the domestic economic recovery.
Instead he believes that the economic upturn simply sets the stage for
the Bush Administration’s next challenge: tax reform.
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“We are in a good recovery and I think people know that now,”
Secretary Snow said April 19 at an ACCF Capital Formation Forum.
“But there is another looming problem on the horizon. It is
a stealth tax. It has snared a few, but it is going to snare many
more; it is the alternative minimum tax.”
The alternative minimum tax, or AMT, was
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enacted in 1969 to limit the ability of high-income earners to avoid income
taxation. While it is estimated that less than three million taxpayers were
subject to the AMT in 2003, Treasury Secretary Snow believes that number
will skyrocket in the near future.
“The idea that everybody pays some taxes makes some sense, especially
political sense. But 30 million people are going to be hit by this thing
in the next few years,” Secretary Snow said. “This is going
to be a political firestorm. It will force us to confront the [tax] code.”
Secretary Snow believes he and the rest of the Bush Administration are
ready for that confrontation given their recent efforts to stimulate the
domestic economy.
“There was a lot of uncertainty surrounding the 2003 jobs and growth
bill,” Secretary Snow admitted, adding that Vice President Richard
Cheney likes to remind him that the margin of victory was slim. (The vice
president actually cast the deciding vote after the Senate reached a 50-50
tie.) “There was also a lot of uncertainty surrounding the economy
at that time.”
Secretary Snow said. “There was talk of a double dip. There was
talk of deflation, and there was talk of a weak recovery. But thanks in
part to the many of you that worked real hard on that bill, we got it
passed.”
Secretary Snow believes the Bush Administration’s 2003 jobs and
growth package forced many lawmakers to seriously consider the connection
between economic policy and economic progress.
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