Posted on 12/04/2007 4:17:22 PM PST by SmithL
WASHINGTON, (AP) -- The Senate on Tuesday failed to come up with a plan for blocking an unpopular tax that could affect millions of taxpayers and already is causing disruptions in preparations for the upcoming tax filing season.
Senate Democratic and Republican leaders, while agreeing that Congress must act immediately to stop the alternative minimum tax from hitting some 25 million taxpayers in 2007, up from 4 million in 2006, mutually rejected plans from the other side on how to proceed.
"We all know this is a pernicious tax, a stealth tax," Senate Finance Committee Chairman Max Baucus, D-Mont., said. "Each day we dally here" costs the government more money and "means a lot more frustration for taxpayers."
The AMT was created in 1969 to prevent a very small number of wealthy people from avoiding all tax payments. But it was never indexed for inflation, and every year more middle income families are subject to the tax.
Congress in recent years has legislated annual fixes to keep the AMT reach from expanding, but this year the Democratic-controlled Congress and the White House have locked horns over whether the fix should be paid for with tax increases in other areas.
(Excerpt) Read more at sfgate.com ...
So what's stopping you from repealing it outright, Max?
Oh, that's right, Dems never repeal a tax or an entitlement. So live with it.
Dems stopped its repeal out right....ass holes one and all.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Dems confiscate it, Bush gladly spends it.
Dem’s will ONLY fix AMT if all Bush’s “tax cuts” are eliminated. They never met a tax they didn’t raise....or like.
This is just what I expected. I expect to pay thousands more next April, as the political posturing goes on.
Repeat after me:
Congress is NOT your friend.
Congress long ago bagged and tagged the cash you’ll being paying in next year, devere.
Attention Republican Congressional hopefuls:
Between the AMT and immigration, the GOP has its issues.
Ironically, the AMT is a major factor in the collapse of the real estate market in this country. People in the AMT bracket don’t get the same tax deductions for mortgage interest and state/local taxes they would otherwise get, so from a financial standpoint it makes more sense to rent your home than own it if you are in the AMT bracket.
Neither party owns this issue. The GOP had years to repeal it or replace it with legislation that is indexed. But they were too busy trying to spend my tax dollars on massive entitlements.
The ironic thing is that tax rate cuts always raise revenue. We have statistics going back to at least JFK that prove it. But Dems (and many GOPers) just don’t get it.
Does anyone know at what rate the AMT kicks in without the fix?
Congress is NOT your friend.
I remember reading the plans were:
Dem: Pass a one year AMT relief plan until they have full control and use AMT repeal to raise a ton of other taxes.
Rep: Block this years bandaid plan to demonstrate to the voters just how bad AMT is to force repeal/revision before the next election.
They have been passing one year bandaid AMT relief plans for a while.
lib/dems will never give up a tax increase without a fight!!!
“Ironically, the AMT is a major factor in the collapse of the real estate market in this country. People in the AMT bracket don’t get the same tax deductions for mortgage interest and state/local taxes they would otherwise get”
The mortgage interest deduction is exempt from the AMT. It’s the state and local tax deduction they hit. The AMT, for whatever obscure political reason, is set up to punish taxpayers in high tax states.
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