Bush Demands Congress Send Him Legislation to Fix Alternative-Minimum Tax

Wall Street Journal ^ | 17 November 2007 | Associated Press and WSJ

[shrinkermd]

President Bush demanded Saturday that Congress send him legislation that keeps middle-class Americans from being hit at tax time next year by the dreaded alternative-minimum tax.

That's not likely to happen anytime soon. Congress has adjourned for the Thanksgiving holiday. The legislation is muddled in the House and Senate. And Mr. Bush has threatened to veto any bill that raises taxes as a way of fixing the tax, known in shorthand as AMT.

"I will veto any bill that raises taxes as a condition of fixing the AMT," Mr. Bush said in his weekly radio address. "Members of Congress must put political theater behind them, fix the AMT and protect America's middle class from an unfair tax hike."

The AMT was created in 1969 to ensure that a small number of wealthy people could not use tax breaks or deductions to avoid paying any taxes. It was never indexed for inflation, and every year the AMT net falls on more middle-income taxpayers. This year some 4 million people were subject to the tax.

If Congress and the White House do not reach a compromise by the end of the year, anywhere from 21 million to 25 million middle-income taxpayers will be subject to it, costing them as much as $2,000 in extra taxes.

Earlier this month, House Democrats pushed through an $80 billion bill that would extend AMT relief for one year, at a cost of about $50 billion. It also includes another $30 billion in popular tax relief measures. To cover the $80 billion price tag, the bill would bring in revenue by changing tax rules affecting corporate transactions.

[mmyers]

I am Sorry George, We are too busy doing nothing as usual.

Dingy Reid

[vietvet67]

[Mygirlsmom]

First of all, there already is a plan that is tax neutral - Wisconsin Representative Paul Ryan has forwarded it. It will go nowhere because it offers taxpayers a choice - pay a flat tax or use the current code and take deductions.

Now, will someone please tell the AP and the WSJ (shame on WSJ they should know better!) that tax cuts do not COST the government anything!!!! If a guy robs a bank but he is not able to take everything in sight, did that cost him what he was not able to carry?

[nyyankeefan]

Bush Demands Congress Send Him Legislation to Fix Alternative-Minimum Tax ...

is Bush kidding.....

piglosi/reid and the lib/dems couldn’t even fix dinner!!!

[VRW Conspirator]

Excellent! The Dems will screw this up. Next year, all the idiot democrat baby boomers will get gouged by this monster and will whine that taxes are too high.

[expatpat]

Yes. Bush and the GOP should continue to bring this up.