Bush: 'Alternative Minimum Tax' Must Be Fixed

CNN ^ | 11/18/2007 | EagleUSA

[EagleUSA]

WASHINGTON (AP) -- 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.

Bush says because the IRS had to send 2007 tax forms to be printed before AMT is resolved, many forms will be wrong.

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 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," 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.

[EagleUSA]

Bush had his chance to fix the AMT. About seven years' worth -- now it is just a political football, cheap talk and rhetoric, and will just become more of a tax increase with time, which the socialists controlling our Congress are just loving.....tax, tax, tax. Just think what it will be like with Hitlery in the White House....

[infidel29]

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.

If the AMT was designed to snare several wealthy families in a tax trap, and now threatens to affect 25 million, that tells me 25 million more families qualify as "wealthy" than did 30 years ago. Seems like the poor are getting richer.

[Howie66]

“Bush: ‘Alternative Minimum Tax’ Must Be Fixed”

Wrong!! The AMT must be eliminated!!

[RightOnTheLeftCoast]

"costing them as much as $2,000 in extra taxes"

You can add a digit to that.

Among the reasons to be dissatisfied with the GOP, which held the House, Senate and Presidency, is its total lack of fiscal prudence. Not only has spending ballooned in a manner not seen since LBJ, our insane tax laws have gone unaddressed. The AMT equates to a huge tax increase that acts as a gut-punch to the middle class when it hits. It cannot be predicted so it isn't withheld-for, so it comes out of the savings of a country that saves too little to begin with. I am frankly amazed that it hasn't plunged us into recession already, with millions stunned over the past two years. As it grows, it will do so. Will 2008 be the year it topples our economic house of cards? Bad, bad timing if so, with an election underway.

[Disambiguator]

The headline Bush: 'Alternative Minimum Tax' Must Be Fixed should read Bush: 'Alternative Minimum Tax' Must Be Nixed.

[EagleUSA]

Seems like the poor are getting richer.
:::::::
They are — in fact, many do not have to pay ANY tax. How is that for a major dose of Marxism?? How long will it take Americans who do pay all the taxes to insist on a flat tax / fair tax, whatever?? Pols are just using the tax code as a tool of political empowerment, and that is why it will take a ground swell of public demand to end the tax code as it exists today. And throw in the IRS as well.

[Caipirabob]

The Republican have an issue that should be sufficient to tip any questionable races to the "R" side this year over the Democrats AMT tax increase.

Elections have consequences. Don't blame me, I voted "R"...

[Texas Eagle]

I can hear Ronald Reagan speaking from the grave:The scariest sentence in the English language is, 'I'm from the government and I'm here to help you.'"

RIP, RR. You've done your part.

[EagleUSA]

I can hear Ronald Reagan speaking from the grave:The scariest sentence in the English language is, ‘I’m from the government and I’m here to help you.’
:::::::
Yes, I would bet even Jefferson, Adams, Franklin and Madison are rolling over at the thought their dearest America being turned over to power-mad socialist hacks who want to burn the Constitution.

[pray4liberty]

Mr. President, you should have thought about that in 2000 when we elected you.You are way too late. Whoever promises to fix the tax system now is going to win.....and if they don’t deliver, then they may well face a repeat of 1776!

[NCjim]

Congress has adjourned for the Thanksgiving holiday.

Is CNN correct? I thought that Reid is keeping the senate in session?